2024 Finance Trends: AI, Remote Work, Analytics, Fraud, and Real-Time Payments
As we approach the year 2024, finance professionals are gearing up for a wave of digital transformation and technology adoption within their departments. A recent survey conducted by AvidXchange, a leading provider of accounts payable automation software and payment solutions for middle market businesses, sheds light on the top trends that finance leaders are anticipating for the upcoming year.
Artificial intelligence (AI) is set to play a major role in revolutionizing finance departments. According to the survey, 72% of finance leaders are currently utilizing AI technology, and more than half of them expressed being very comfortable with using it. AI is expected to supercharge productivity and streamline operations within finance departments.
Recognizing the importance of training employees to effectively leverage AI technology, nearly half of the surveyed organizations are providing upskilling and reskilling opportunities for their finance teams. This shows a commitment to equipping employees with the necessary skills to navigate the AI revolution and other digital transformation efforts.
The survey also revealed that remote and hybrid work options will continue to be a prominent trend in 2024. Around 80% of finance departments currently operate in hybrid or fully remote models. However, there is room for improvement in terms of technology and collaboration in these working environments. Inadequate technologies, such as computer hardware and cloud-based software, pose challenges for 29% of remote and hybrid finance leaders. Additionally, proper onboarding and training for digital skills, as well as opportunities for mentorship and collaboration, are areas that need attention.
Business analytics is another area that will see significant investment in the coming year. The demand for financial analysis and reporting among stakeholders is driving finance teams to invest in tools that automate the reporting process, provide real-time insights, and simplify report building. Data analytics is being harnessed for key purposes such as informing decision-making, identifying fraud, reducing errors, identifying growth opportunities, and finding cost-saving opportunities.
Addressing fraud concerns is a top priority for finance departments in 2024. While 64% of financial leaders reported that their companies have strengthened security measures in 2023, organizations must remain vigilant due to ever-evolving tactics employed by threat actors. The survey revealed that 57% of respondents’ organizations fell victim to check fraud attacks or attempts, and 60% experienced cyberattacks, including phishing attempts. Data protection and security, as well as digital transformation, are the top priorities for finance professionals in the year ahead.
Real-time payments (RTP) are gaining momentum as suppliers expect the same convenience and rapid payment associated with person-to-person payments. In 2023, 49% of organizations used real-time payments to pay suppliers and vendors, and this trend is expected to intensify in 2024. As 81% of finance professionals reported an increase in requests for RTP from suppliers or vendors, organizations will need to keep up with the demand for fast and secure e-payment tools to avoid the risk of losing partners.
In summary, the year 2024 will be marked by digital transformation and technology adoption within finance departments. The use of artificial intelligence, remote and hybrid work options, business analytics, fraud prevention measures, and real-time payments will shape the future of finance. By staying ahead of these trends, finance professionals can adapt to market changes and deliver superior services to stakeholders.
