The promise of artificial intelligence in the finance function, and challenges in obtaining the required digital talent, are driving leading CFOs to concentrate hiring efforts and development resources on employees with the necessary aptitude and attitude to meet the function’s digital skills targets.
Research and advisory firm Gartner predicts that by 2028, 20% of finance organizations will stop hiring and developing nondigitally literate talent and allocate all talent-related investments toward advanced digital capabilities.
In this Q&A, Emily Connelly, senior director analyst in the Gartner Finance practice, provided insight on what this means for finance leaders and how AI implementation requirements are prompting CFOs to focus investment toward building more sophisticated technical capabilities within their already digitally literate workforce.
Q: How will the shift in all talent-related investments toward advanced digital capabilities impact finance roles, hiring, and employee development?
Emily Connelly: The push to adopt more AI solutions in the finance function will disrupt the status quo in finance talent as more basic entry-level tasks are automated and the need for advanced digital skills increases. This will manifest in several ways:
- Role redesign: Many traditional roles will be eliminated or redefined to require advanced digital skills. Remaining roles will demand higher standards in technology use and innovation.
- Selective upskilling: Organizations will concentrate upskilling resources on employees who demonstrate the potential to advance digitally. Those unable to progress will see limited career advancement.
- Change through attrition: Most organizations will manage this transition through retirements and natural attrition. Mass layoffs due to AI will likely be a rare occurrence.
- Performance objectives: Digital development will become a formal part of annual performance goals, with employees expected to upskill and use AI in their workflows.
- On-the-job learning: Experiential development, learning by doing, will be prioritized over traditional training, as it is more effective in building digital skills.
Q: How will leading finance organizations prioritize digital literacy and advanced digital capabilities in their talent strategies by 2028?
Connelly: CFOs at leading finance organizations understand that a lack of data science and AI skills are one of the biggest obstacles to meaningful transformation and return on investments in AI and automation: 59% are already using AI tools for finance use cases but outcomes have been mixed.
Typical finance teams today consist of three main talent categories: basic technology users who perform recurring tasks using provided technologies (50% of finance staff); digitally literate and advanced technology users, which are employees who leverage more advanced capabilities (35%); and, digital talent, which are the individuals who create or modify digital capabilities for finance and enterprise (15%).
This mix of staff and skills isn’t well matched to the kinds of activities that will be performed in an AI-driven finance function where digital skills and business partnering will be as—if not more—important than core finance skills.
Therefore, resources must shift to enable teams to better learn and use AI. Transactional work is being automated while digital work is increasing. At most organizations, it’s not practical to upskill all staff as some will not have the desire or aptitude to make that shift, so targeted investments to already digitally savvy employees will make the most sense in many cases.
Q: What are the broader market implications and recommendations for finance leaders?
Connelly: Competition for digital talent will only intensify. Every organization, and not just finance organizations, will be seeking similar digital skills. Finance leaders must get creative in attracting and developing talent, particularly because digital experts often don’t naturally gravitate toward finance roles.
Also, technology will replace some roles, although large-scale layoffs are expected to be rare. Nevertheless, organizations must be mindful of potential public and employee relations challenges tied to the significant workforce changes that lie ahead.
Further, without a sustained focus on digital upskilling and career development, organizations risk falling behind. Given the intense competition for digital hires, a failure to develop digital skills internally will lead to finance organizations that lack the resources and capabilities needed for future growth.
Additional information is available to Gartner clients in the report Predicts 2026: Toward an AI-First Finance Function.
Photo credit: Gartner
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