Adapting to Change: The Evolving Role of CFOs in a Data-Driven World

The finance landscape is undergoing a rapid transformation, driven by technological advancements and the need for CFOs to navigate an increasingly complex environment.  In a panel discussion at the Future of Finance & CFO Exchange, Alex Ellis, Senior Director, of Corporates UK&I at Thomson Reuters, and Lubov Mikulaninecova, Partner, Tax Technology & Transformation at EY, explored the evolving role of CFOs in this data-driven world, emphasizing the importance of data strategy, compliance, and resilience in a time of uncertainty. 

Navigating the Global Landscape:

In 2024 alone, over 70 countries held elections. For CFOs, geopolitical changes present the challenge of ensuring continued compliance whilst maintaining operational excellence. The ability to navigate these complexities requires a strategic approach to data, compliance, and technology adoption. 

With regulatory pressures and rapid technology advancements, CFOs are no longer confined to the traditional “chief accountant” role. As Paul Case, the panel’s moderator, pointed out, the modern CFO is not just a keeper of financial records but a strategic business partner leveraging AI and data insights to drive value. The CFO is now a technology leader, tasked with balancing finance, profitability, sustainability, and innovation. 

The Role of Data:

Lubov brought attention to the evolving role of tax functions, noting that tax is no longer just a financial concern but a key component of broader business processes.

"From a tax perspective, the role of the CFO is becoming more strategic and integrating into wider business processes.”

However, cost pressures, talent shortages, and the increasing demand for technology-driven solutions are all factors that CFOs must consider when building a robust data strategy. 

Alex noted that data, as both an opportunity and a risk, is central to the CFO's ability to adapt to change. The panelists highlighted that creating a data strategy is essential for ensuring that the right data is integrated into decision-making processes. According to Lubov, “There is no such thing as ‘tax data’. It’s part of a wider ecosystem that includes legal, HR, finance, ESG, and supply chain data.” 

Integrating Technology: 

One of the critical aspects of evolving CFO responsibilities is the integration of new technologies, such as AI and advanced data management. However, as Paul noted, many organizations are still limited to outdated technologies like Excel, leading to data silos that hinder collaboration and decision-making. “The challenge is how to bring everyone together on the same platform,” he remarked.

Alex continued by highlighting that scenario planning, backed by AI, is one key strategy that can help CFOs navigate uncertainty, as studies from McKinsey have shown. By leveraging data-driven insights, CFOs can anticipate future challenges, prepare for unforeseen circumstances, and ensure that they are not just surviving but thriving in a constantly evolving business environment. 

Successful use cases of data and technology adoption in finance include integrating data systems and empowering leadership to engage in self-service analytics. As Alex explained, productivity gains come from being faster and more efficient, while the goal is driving value and compliance. Teams must become fluent with AI adoption to unlock its full potential and ensure that decision-makers have the necessary insights at their fingertips. 

Resilience in the Face of Uncertainty:

In times of uncertainty, resilience becomes a priority. The CFO’s role is increasingly about leveraging technology to remain agile, make data-driven decisions, and ensure that the organization is well-prepared for the future. 

“We cannot use yesterday’s tools to manage the uncertainty of today.” 

Lubov added that tax departments play a significant role in finance transformation. In her view, tax functions must be integral to the process of implementing new enterprise resource planning (ERP) systems or integrating tax requirements to improve data quality standards. A centralized data platform can help streamline this process and facilitate more accurate compliance reporting. However, the implementation of such systems requires CFOs to understand the obligations of different teams and ensure that the right skills are in place. 

Skills for the Future of Finance: 

The panelists highlighted that the skills needed within finance teams are evolving rapidly. CFOs must focus on developing a data-literate workforce that is comfortable with AI tools. Additionally, fostering a commercial mindset is essential to ensure that teams can leverage data effectively to drive business value. “AI won’t outwardly give us the answers,” said Paul. “Our commercial mindset will help us leverage the correct data.” 

In the Middle East, where AI is a high priority on the business agenda, there is a growing focus on integrating AI into business processes and embedding it in key performance indicators (KPIs). Lubov suggested that tax could be the first function to lead this AI adoption, as it has the potential to drive significant value within finance transformation. 

One challenge identified during the discussion was that many data scientists are still bogged down in data engineering tasks, preventing them from delivering value. This reveals a skills gap and the need for organizations to evolve their approach to data science. Creating roles such as Citizen Data Scientists—employees who can bridge the gap between data engineering and business insights—could help unlock the full potential of AI and data analytics. 

Key Takeaways: Embracing Change and Driving Transformation: 

As the role of CFOs continues to evolve, embracing AI and data literacy is no longer optional—it’s a necessity.  

"Data is the new currency of today.” 

For CFOs to thrive in this data-driven world, they must embrace modern tools, foster a culture of transparency, and collaborate across teams to drive value and ensure compliance. 
The future of finance is undoubtedly data-driven, and CFOs are at the helm of this transformation, leading their organizations into an era of innovation, compliance, and resilience.

The question is no longer whether to embrace change but how to harness it to unlock the full potential of a data-rich world.  To gain more insights from our SSO Network, please join us for our Finance Transformation Virtual Summit.