Singapore CFOs are seeking to lead on value creation, amid challenges in efforts for AI transformation due to skills and mindset hurdles.
In a recent report by EY, it was revealed that 30% of Singapore CFO respondents see their AI preparedness as leading or advanced while most still have only a limited grasp and are yet to see the technological advancement’s full potential.
This lack of confidence, according to EY, appears to be limiting the extent to which CFOs use technology to make informed high-value decisions.
While a majority of CFOs in Singapore intend to lead in value creation, only 23% front vital investment decisions and just 23% spearhead value creation discussions.
Against this backdrop, the study found that 58% say definition of enterprise value must change.
Further, just 20% of Singapore CFO respondents say their organisations see the finance function as a key partner in value creation.
EY cited challenge of measurement as one of the key barriers to CFOs fulfilling their potential as value creators, as 45% of Singapore CFOs believe that traditional metrics cannot capture the value created by technology, data, new roles, or even long-term investments.
The study also found that Singapore CFOs see the difficulty in proving ROI upfront as a big obstacle and that current metrics need to be redefined.
Moreover, 55% of Singapore CFOs recognise challenges with data quality, 38% say they struggle to clearly explain the benefits, and 38% note they lack the necessary skills or capacity to make full use of the technology, reflecting hurdles in securing investment for AI.
The study highlights challenges in how leadership capabilities keep up with the fast-changing demands of the CFO role, as 38% of Singapore CFOs say they are evolving faster than their leadership teams across the wider finance function, and 78% believe they need new skills and leadership styles if they are to remain effective.
The EY report outlines a series of recommendations that can help CFOs to build resilient, innovative finance functions that serve as strategic partners to businesses:
- Overhaul value measurement and take ownership of key investment decisions.
- Build AI readiness through strong data foundations and skills investment.
- Elevate people and culture as core priorities.
- Ensure adaptability, collaboration, and confidence with new technologies.
- Accelerate leadership development to strengthen succession pipelines.
- Redesign roles and operating models to free up time for value creation.
