At a glance
When generative artificial intelligence tools (AI) burst onto the scene in 2023, this opened doors to a brave new world that many were unaware even existed. Platforms such as ChatGPT, Google Bard and Bing transformed the web, making it capable of generating a conversation from queries written in natural, “human” language.
As we enter 2024, there is no doubt that generative AI will continue to offer solutions to enhance financial management, mitigate risks and drive strategic decision-making.
Technology will keep advancing – and being abreast of the latest developments is a critical part of any CFO’s role in a future dependent on machines.
Despite its obvious importance, technology is not the only trend to keep on top of for 2024. CFOs should also be aware of changing attitudes to work, an increased focus on the tangible benefit of economic, social and governance strategies (ESG), as well as new reporting requirements.
In addition, building an adaptable and strong workplace culture is crucial to helping CFOs play their role in keeping their organisations competitive, efficient and financially sound.
1. Harness artificial intelligence
A study by PwC UK estimates generative AI could add up to US$15.7 trillion (A$23.8 trillion) to the global economy by 2030. For any business that is not using it to improve efficiencies, such as performing repetitive or mundane tasks, the cost could be significant.
Being able to show how using AI can align with organisational values and wider ethical standards has an even greater advantage, says David Cawley, regional director of recruitment and workforce solutions specialists Hays.
“As AI technologies continue to advance and are integrated into various aspects of an organisation, employers are increasingly looking for leaders who understand and can leverage AI effectively.
“Being able to show how you’ve driven up efficiency, productivity and competitiveness by using AI can help you stand out. For instance, for improvements in data analysis, forecasting, operational efficiency and risk identification,” Cawley says.
2. Cultivate a culture
As the dust settles around working from home arrangements and more businesses bring employees back into the office, cultivating a culture that blends teamwork with remote working will be crucial, says change strategist and trends expert Michael McQueen.
“As a leader, it will be increasingly important to cultivate and build a strong culture in a hybrid environment,” McQueen says.
“In 2024, I think we will land on three to four days in the office and a couple at home. The question is, how do you create rhythms within a team that works that way, so the flow of communication happens seamlessly, and everyone feels like a part of the team?
“I see a lot of dislocation within teams where social bonds are not built because people are not working in the same place. You need to be able to build within a team in order to reach peak performance, have a good flow of ideas and to be able to collaborate and innovate,” he says.
3. Understand changing generational expectations
In 2024, Generation Z workers (people born between the mid-1990s and mid-2010s) are set to overtake Baby Boomers as the largest working cohort, McQueen says.
“By the end of next year, almost a third of Australia’s labour market will be Generation Z, who have very different attitudes and expectations of work. That means any leader will need to understand how different it will be to manage and lead them,” he says.
“Around 72 per cent of Gen Zs prefer face-to-face communication over video calls and remote arrangements. Work is a very important social component of their life. It’s where you meet people and form networks, so not everyone is going to be happy with working from home,” he says.
4. Stay across ESG knowledge and strategy
Mandatory climate-related financial disclosure requirements for companies and financial institutions will be introduced in Australia in 2024, which means CFOs will need to be clear about how they are managing the risks and opportunities in their organisations.
From a societal perspective, ESG strategy is gaining more attention across the world of work, but in 2024, the focus from employees, stakeholders, shareholders and customers is expected to shift onto the outcomes an organisation achieves rather than just rhetoric, Cawley says.
“CFOs can help to ensure an organisation’s commitment to ESG is translated into meaningful outcomes. This is not just by measuring and reporting on ESG indicators, but by influencing resource allocation, such as investments in eco-friendly tech, energy efficiency measures, waste reduction programs and projects with social impact.
“Organisations are increasingly aware of the tangible benefits of an ESG strategy, while people want to see more transparency and accountability,” he says.
However, it is not just CFOs who need to look at ESG, Cawley argues.
“Every employee, regardless of their role, can play a part in achieving and influencing ESG goals. All our decisions and actions can have an impact, so as ESG becomes more of a guiding framework an organisation needs to ensure that all employees have a shared responsibility.”
