In September 2023, AvidXchange conducted a survey of 500 finance executives to determine the biggest finance trends for 2024. We uncovered insights on:
… and more.
Read on to learn more about how finance leaders are addressing these finance trends for 2024 within their departments today and into the New Year.
1. Artificial Intelligence
It’s no surprise that businesses across the spectrum are exploring ways to use AI. Our survey, 2024: Anticipating Tomorrow’s Trends, found that 96% of finance leaders are already using AI in their departments or are interested in doing so.
Currently, the main use cases for AI within finance departments are customer service, fraud detection and risk management. Sixty percent of the individuals we surveyed said they are “very comfortable” using AI technologies.
On the other hand, 12% of survey respondents said they are “hesitant” or “very uncomfortable” using AI. They cited a lack of understanding and concerns surrounding the regulation and safety of the technology as the reasons they’re reluctant to use AI.
Nearly half of finance leaders (49%) said their organization is supporting finance employees with upskilling and reskilling opportunities to help them learn new digital skills, including how to effectively utilize AI.
2. Business Analytics
Finance departments are feeling the pressure to deliver detailed reporting to stakeholders more often. In an environment where public opinion, market trends and operational dynamics can change rapidly, having up-to-the-minute insights is invaluable.
Access to real-time data analytics provides the agility and foresight necessary to stay competitive and relevant in today’s evolving business climate – whether the data is used to optimize inventory levels, fine-tune marketing campaigns or identify potential business opportunities.
Sixty-six percent of the finance leaders we surveyed said their teams currently have access to real-time data analytics to support business analysis. Twenty percent said they have plans to implement real-time analytics in 2024.
According to our 2024 Trends Survey, organizations use data analytics most often for informed decision-making. Within finance departments, teams are leveraging data analytics to analyze invoice data (75%), measure invoice and payment workflows (67%) and track purchasing payments (60%).
3. Real-Time Payments
RTPs have emerged as a transformative trend in the financial industry, enabling near-instantaneous processing and settlement of transactions, thus giving vendors and suppliers immediate access to funds. As the RTP trend gains momentum, it’s reshaping traditional banking models, encouraging innovation and setting new standards for speed, convenience and accessibility.
RTPs allow finance departments to better manage liquidity by accurately forecasting cash flow and optimizing working capital. This enables organizations to allocate funds efficiently and meet financial obligations promptly.
Eighty-one percent of survey respondents told us they’ve seen an increase in requests from vendors for real-time payments in 2023. This is no surprise as RTP platforms become more pervasive following the launch of FedNow this year.
In 2023, RTPs were the most common means our survey respondents used to pay vendors, followed by credit card and Automated Clearing House (ACH). In 2024, this number is sure to grow even more as suppliers’ demand for fast payment grows and businesses must adopt RTP platforms or risk losing partners.
The common theme running throughout these finance trends for 2024 is technology. Tech adoption within finance departments is imperative as CFOs and other finance leaders aim to create an autonomous finance function and drive business growth.
Finance departments must earnestly embrace technology to stay relevant, competitive and efficient in today’s business climate. Technology offers a multitude of advantages, ranging from automating repetitive tasks to providing advanced analytics that drive decision-making. Additionally, technology enhances collaboration and communication across the organization, fostering a seamless workflow and alignment of financial goals with overall business objectives.
Technology will help finance teams address common challenges in 2024 and enable them to improve processes, boost visibility, increase productivity and retain and attract top talent.
Learn about these topics and more by downloading our free whitepaper that digs deeper into the top finance trends for 2024.
Important Notice: Material portions of this post are based on AvidXchange’s whitepaper, “2024: Anticipating Tomorrow’s Trends,” published on September 15, 2023.