From Market Uncertainty to the Risks of Generative AI
Whenever we assess the challenges of any upcoming year, there are familiar faces on the list:
Supply chain disruption.
All remain challenges for finance professionals in 2024. Let’s take a closer look at several.
Challenge: Market Uncertainty
The current economic market requires CFOs to take a more neutral approach. Student loan payments have restarted, consumer spending is slowing, energy prices are rising. The excess savings that many individuals had from the pandemic are now depleted, significantly impacting customer spending. We can anticipate a slower start to 2024.
Challenge: Generative AI
Ernst & Young conducted a roundtable of 20 Fortune 250 CFOs last fall. More than half had a number of AI experiences “in flight” at their organization, while 23.5% had already moved on to more defined projects with clear and functional applications. Generative AI can be used to detect fraud, prep for investor calls, recommending next steps in customer journeys, and so much more. So what’s the challenge? Balancing innovation with risk management.
Challenge: Remote Finance Teams
Team Blue Sky noted the rise of remote work and more distributed finance teams as one of the top challenges CFOs will face in 2024. It is now normal for finance teams to be dispersed over multiple locations, but this can hinder a team in several ways—to start, the potential for spontaneous collaboration decreases. Finance team members also need access to data wherever they are, making it more difficult to maintain control. CFOs will need to manage this with care.
Challenge: Rising Interest Rates + Capital Costs
In their recommendations for engineering CFOs, Growth Force cited that value-based budgeting will be a necessity in 2024. They urged CFOs to evaluate each revenue source with care to avoid any money wasted needlessly on expenses that aren’t generating ROI. No matter your industry, taking this approach will be essential in the face of rising interest rates and capital costs.
Meeting Your Greatest Financial Challenges
What do you feel will be your greatest challenge as a business owner or financial professional in the new year? We’re here to help talk through any immediate or future concerns for your organization and offer guidance based on our expertise and experience. Reach out to schedule your session with a member of our team.