How strategic CFOs are taking on AI to build efficient Finance Teams
Artificial intelligence is reshaping UK finance functions and fundamentally changing how CFOs operate and build their finance teams.
As generative AI tools automate routine tasks once performed by junior staff, Business Owners and Senior Finance Leaders are faced with difficult hiring decisions.
Regardless of size or market, teams are being affected across all businesses; the UK’s Big Four accountancy firms have cut graduate and early-career recruitment sharply over the past two years - in some cases by nearly 30% - and almost 25% of UK start-ups are reporting fewer administrative hires and 19% fewer junior recruits - all in response to AI adoption.
“Founders are starting out with just a small team of specialists, while using AI to reduce the number of people needed to support each specialist”, states Bloomberg, “particularly in roles like business development, accounting or marketing.”
This trend reduces the number of conventional junior finance roles available, making early-career opportunities scarcer and disrupting the traditional career ladder and subsequently the team structure that finance and accountancy have always relied on.
Yet demand for experienced finance professionals with analytical, AI-savvy and data skills remains robust. Senior Finance Leaders are expected to have a clear grasp of AI and technology systems to meet the demands and needs of businesses.
When asked to identify the top three finance and accounting skills for the future, employers pointed to AI and automation (25%), budgeting and forecasting (25%), and cybersecurity (20%) as most critical.
This requires Senior Leaders to not only consider their own skillsets but, build a sustainable finance team, no matter what it’s size, that has the skills and capabilities to further develop and implement their digital strategies, whilst being able to adapt to ever-changing market environments.
“Strategic workforce planning used to be a relatively linear exercise: forecast growth, map required roles and hire accordingly”, advises Trace’s Co-Founder Gareth Cowan in his recent insight piece: The CFO Talent Challenge.
“Today, CFOs have to plan for an environment defined by volatility economic uncertainty, political roulette, shifting regulations, rapid technological change and evolving business models.”
The past few years have been difficult for businesses, from Covid restrictions to a new Government and huge changes to working policies, so it’s understandable that AI has become a secure partner to small and emerging businesses… But at what cost?
“Ever since Covid, headlines have bemoaned how there are never enough graduates to fill vacancies” states the ICAEW, in a recent article. “Yet now, artificial intelligence (AI) is chipping away at staff numbers that were not robust enough in the first place.”
Business Coach Della Hudson FCA, Founder of Minerva Accountants adds; “We need people who are tech savvy. But they need to be able to do people-based things that technology can’t.”
So, what can Finance Leaders do, when looking to build their finance team, in the face of an AI replacement?
Businesses should invest in career pathways that blend technical acumen with strategic insight, equip newly qualified accountants with AI fluency, and prioritise reskilling to ensure teams remain competitive in an AI-augmented future.
“As market conditions remain uncertain, CFOs who treat talent planning, acquisition, and retention as strategic priorities - not operational afterthoughts - will be better positioned to lead their organisations through change”, advises Gareth. “CFOs who invest in coaching, visible career paths, and modern ways of working are also far more likely to keep their best people”, he adds.
“Training demands a huge investment of time”, Hudson states in the ICAEW article. “But the end product is someone who’s exactly right for your culture.”
And it’s this investment that will keep finance teams efficient and secure through this constantly evolving and challenging landscape.
“The loss of key finance talent can disrupt reporting cycles, weaken controls, delay strategic initiatives, and place additional strain on already stretched teams”, warns Gareth. “The finance function of the future will not be defined solely by systems or structures, but by the quality, adaptability, and engagement of the people within it.”
Find out more about how Trace Recruitment works with CFO’s and businesses looking to hire them, or get in touch with us directly to discuss how we can help support your business or career journey.