Why Have CFOs bet big on technology in 2024?

In the 1999 sci-fi blockbuster The Matrix, Neo is offered a choice: take the blue pill and remain in blissful ignorance, or take the red pill and uncover the often harsh truth of reality.

Today’s CFOs are facing a similar crossroads, albeit less dramatic, as they decide whether to maintain traditional practices or embrace an uncharted future defined by digital transformation. Unlike Neo’s uncertain journey, however, the benefits of taking the “red pill” of technology adoption are increasingly clear for finance leaders.

They recognise that the road to resilience and growth lies in advancing digital solutions—a pivot that American Express’s 2024 CFO Survey reflects as a defining priority for finance functions globally. 

Why 2024 Became the Year of Tech for CFOs 

Historically, the finance function has been cautious, operating with a conservative approach to technology adoption. However, a confluence of recent challenges—from heightened fraud risks to evolving mandates—has driven CFOs to shift gears.

The American Express 2024 CFO Survey shows that three-quarters (75%) of the finance leaders say that digital transformation is gaining momentum in strategic importance this year. This is a step away from 2023, when 71% of CFOs reported focusing on financial and economic uncertainty.

Today, as concerns about a potential recession ease, the focus has shifted from getting by to embracing opportunities in an increasingly fast-paced, digital-first world. But what’s driving this change?

The answer lies in the emerging understanding that technology is no longer a supporting player but a strategic partner in achieving corporate goals. As finance leaders confront a landscape that includes mounting regulatory pressures, cybersecurity threats, and evolving customer expectations, the promise of AI, automation, and digital payments is too compelling to ignore.

These tools are not just improving operational efficiency; they’re fundamentally reshaping how CFOs approach risk, transparency, and long-term growth.

As a result, 29% of CFOs plan to improve cash flow by improving their organisations’ payment systems, while 36% plan to increase automation in their organisation.

New Era of Security and Transparency 

One of the strongest motivations behind this surge in tech investment is the need for better fraud prevention and enhanced transparency. In a world where digital transactions are now the norm, traditional payment methods leave finance teams vulnerable to fraud and inefficiencies. The survey reveals that 57% of finance leaders plan to bolster their investment in security and control systems around payments. For these CFOs, digital and virtual payment solutions offer a double benefit: they streamline cash flow and provide a robust defence against fraud.

Moreover, these digital payment systems provide CFOs with an unprecedented level of transparency, offering real-time data insights that are crucial for strategic decision-making. With nearly one in five CFOs citing a lack of internal data as a barrier to meeting strategic goals, access to high-quality, real-time data through digital payment solutions is becoming indispensable. It allows CFOs to monitor cash flow with precision, allocate resources more effectively, and even enhance compliance by maintaining a clear audit trail.

Automation as a Catalyst for Efficiency 

Efficiency has long been a cornerstone of financial management, and in 2024, it is evolving further. The focus on automation extends beyond reducing costs or streamlining processes—it’s about reimagining the finance function as a driver of agility and innovation.

Many finance leaders are already embracing this transformation. By automating repetitive tasks such as accounts payable and receivable, finance teams can redirect their efforts toward high-value activities that foster growth and innovation.

Interestingly, 36% of CFOs plan to incorporate automation within their organisations, reflecting a broader shift in finance from a primarily control-focused function to one that emphasises enablement. By streamlining manual processes, CFOs are enhancing operational efficiency while also equipping their organisations to adapt more quickly to changing market dynamics. In today’s competitive landscape, where agility is key, automation is emerging as an essential resource for finance leaders.

More broadly almost half (47%) of organisations plan to increase technology spending in the year ahead, making this the top priority after new product development. But there are regional variations – 77% of CFOs in North America say they expect to increase technology spending this year, while only 42% in Asia-Pacific and 40% in Europe, the Middle East and Africa (EMEA) said the same.

This is despite 77% of finance leaders in EMEA and 65% in Asia-Pacific saying they expect the strategic importance of digital transformation to increase in the coming year. Meanwhile, more than nine of ten (92%) North American CFOs said it was a top priority for their organisation.

Navigating Risk with Predictive Intelligence 

The finance function has traditionally been reactive, relying on historical data to guide decisions. However, AI is reshaping this approach by offering predictive insights that help CFOs anticipate future trends and risks.

As the power of data-driven insights becomes clearer, many CFOs are beginning to feel the push toward adopting AI technologies. In fact, 34% of survey respondents acknowledged experiencing some pressure to integrate AI into their operations. By leveraging AI, CFOs can conduct scenario analyses, model potential risks, and make proactive adjustments—enabling them to navigate a volatile economic environment with greater confidence.

Risk management is a growing responsibility for finance leaders, as evidenced by the survey’s finding that 67% of CFOs plan to increase spending on this area in 2024. AI-driven analytics allow finance teams to build robust risk management frameworks, making it possible to address everything from geopolitical instability to cyber threats. This proactive approach to risk marks a paradigm shift for CFOs, who are now expected to balance traditional fiscal oversight with a forward-looking view that prioritizes resilience and adaptability.

Technology as the Gateway

CFOs are no longer mere stewards of cost and risk. Yet, this technological shift raises questions: Are finance leaders truly prepared for the complex journey that digital transformation entails?

Will the integration of AI, automation, and digital payments create unforeseen challenges that may require an even more sophisticated approach to risk management?

As CFOs embrace technology, they are also paving the way for a refreshed approach to finance—one where agility, transparency, and resilience take center stage. The red pill of digital transformation is not without its risks, but for today’s finance leaders, the alternative is a world left behind.”

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