Technology is transforming finance, and with the right approach, tech tools can move finance from a transactional back-office function to an even more strategic adviser and business partner role.
But while tools like robotic process automation improve reconciliations, and artificial intelligence (AI) enhances analytics, the report Driving Digital Technology Use in Finance Functions reveals that digital transformation is not driven solely by the technology itself but also by the people and the environment in which they work.
Despite the exponential growth of digital tools, adoption and integration across finance functions are inconsistent. Many teams still rely on spreadsheets and manual processes to do the heavy lifting, even as organisations invest heavily in advanced systems and data science expertise.
Through in-depth interviews with finance managers, the researchers sought to understand why some finance teams adopt digital tools while others hesitate.
Beyond tech tools: The human foundations of digitalisation
The report's findings, based on interviews of finance managers across Ireland, show that resistance to AI tools is not just due to a lack of awareness or resources. Rather, barriers include a lack of confidence in using the tools, weak organisational networks, and insufficient digital skills within teams. These issues can prevent successful adoption, even when the right tools are available.
Digital transformation works when the people using the tools have the right skills, support, and systems around them. The research also suggests that digital transformation is about much more than acquiring new technology.
Three people-centred factors emerge as keys to successful digitalisation within an organisation:
Digital self-efficacy: the level of finance professionals’ confidence in their own ability to use digital technologies
Organisational connectedness: the breadth and quality of relationships across the business
Collective digital skills: the overall level of digital competence within the finance team
These factors work together to create knowledge exchange about digital tools. The more confident and connected finance managers feel, the more likely they are to communicate insights, ask questions, and experiment with new technologies. But even the most confident professionals need an encouraging network: Knowledge cannot be shared in isolation.
Knowledge exchange is essential
Knowledge sharing is a powerful way to advance both automation (where technology fully handles routine tasks) and augmentation (where humans and technology work together to add value).
The Driving Digital Technology Use in Finance Functions report shows that when finance functions encourage and create a collaborative culture, technology adoption is strengthened, and people’s capacity is freed up to spend more time on higher-value tasks.
Practical recommendations to strengthen knowledge sharing and accelerate digital transformation in your organisation can look like:
Develop digital self-confidence: Invest in training, mentoring, and recognition so people can build confidence in using digital tools.
Strengthen organisational networks: Facilitate collaboration among teams and departments to ensure knowledge is accessible to everyone. Create cross-departmental projects and encourage knowledge-sharing across teams.
Invest in building digital skills: Provide professional development across the organisation, not just a select group, so you don't rely on only a handful of “tech champions”.
Data quality is the foundation for cutting-edge technology
As finance teams move forwards on their digital journey, they don’t just automate routine tasks, they also increasingly rely on technology to enhance (or “augment”) the value that finance professionals can deliver.
The research distinguishes between two forms of augmentation:
Human-led augmentation: where finance professionals use technology outputs but add their own judgment and analysis
Technology-led augmentation: where advanced digital tools, such as AI, drive analysis and recommendations with less human involvement
While knowledge exchange supports both forms of augmentation, the leap to technology-led augmentation requires a solid base of high-quality data. Without reliable, accurate, and usable data, the complete potential of cutting-edge tools is out of reach.
The message is clear: Before embarking on ambitious AI projects, finance teams must prioritise data quality and governance.
A phased approach to digital transformation
One of the report’s key insights is that automation and augmentation are not competing priorities.
Automation often lays the basis for subsequent augmentation initiatives. By sequencing digital adoption — starting with automating basic processes, then moving to human-led augmentation, and finally scaling up to technology-led augmentation — you can build momentum and credibility for larger investments.
As a leader, you are also encouraged to acknowledge small automation “wins” to generate buy-in and demonstrate the value of digital investments across the organisation.
The research stresses an important change in mindset. Digital transformation isn't simply a question of “which tools?” It’s about developing confidence, collaboration, and capability within teams. By focusing on people and context, not just systems, you can lay a solid foundation for your team to continually adopt new tools and enhance the strategic value of their functions.
Read the full report, Driving Digital Technology Use in Finance Functions, for more in-depth insights and recommendations.