Finance and AI

A new article from McKinsey & Company [CLICK HERE TO READ] explores the evolving landscape of finance skills in the era of artificial intelligence (AI) and advanced automation. As generative AI tools become prevalent in financial services, comprising 24% of staff tools within a year of availability, the article delves into the changing skill sets required for finance professionals. In a 2023 McKinsey survey, CFOs identified capability building and advanced technologies as crucial for building organizational resilience.

Analyzing finance job postings from 2018 to 2022, the authors identified a shift in demand for skills. Four broad capability areas emerged: finance subject matter expertise, managing financial data, processes, and technologies, generating financial insights, and leading self, teams, and organizations. While all skill sets saw increased demand, the softer and more strategic skills associated with leadership, collaboration, and communication experienced a growth rate of over 7%, outpacing more transactional skills.

The shift is attributed to automation, which is steering professionals away from transactional and know-how-based skills toward human-centered skill sets. With technologies like generative AI automating transactional activities, the demand for skills related to personal and organizational leadership is on the rise. These leadership skills are crucial for translating financial insights into improved business performance, ensuring effective decision-making, and navigating complex organizational landscapes.

The article concludes with actions for finance leaders to navigate this evolving landscape successfully, including determining future skill requirements, assessing current staff skills, investing in targeted capability-building programs, and strategically recruiting talent to fill skill gaps.