How Data Skills are Changing the Future of Finance—Expert Panel

undergoing a significant change, driven by the increasing importance of data analytics in decision-making processes. Traditionally, finance roles focused on historical data analysis, recording transactions, and generating reports. However, as Ian Paye from ICAEW highlights, there is now a pressing need for finance professionals to adopt a future-focused approach. This involves leveraging data to predict trends and make informed strategic decisions. As Jim Hinschliff notes, the profession has changed from using paper ledgers to integrating business intelligence tools like Power BI, which enable more active and predictive insights. This evolution is not merely about adopting new tools but also about changing mindsets to embrace the role of data as a strategic asset. As Ian Paye mentioned, "In this digital age, we want information now. We don't want to wait for monthly or quarterly reports."

Data Volumes and Tool Adoption

The surge of data volumes presents both challenges and opportunities for the finance sector. Ian Paye explained how data sets have grown from hundreds of thousands to billions of records, making traditional tools like Excel outdated for such vast amounts of information. The need for instant information and analysis has led to the adoption of more sophisticated tools like Python, Alteryx, and Microsoft’s Power Suite (Power BI, Power Query, Power Automate). These tools offer the necessary capabilities to manage and analyze large datasets effectively. However, as Ian cautions, "You can't just start developing an AI function in your business." It is vital to first establish a clear data strategy that aligns with the organization's goals and capabilities.

Bridging the Skills Gap

There is a noticeable generational gap in data skills within the finance profession. Younger professionals tend to be more comfortable with technology, whereas older generations may lack confidence in their data skills. This discrepancy necessitates varying training approaches. Jim Hinschliff emphasizes the importance of developing both technical and non-technical skills, such as problem-solving and communication. These skills are essential for finance professionals to effectively collaborate with data specialists and leverage data insights. Ian Paye also highlights the need for finance leaders to understand the basics of data analytics to guide their teams effectively and make informed strategic decisions.

Challenges in Technological Implementation

Implementing new technologies can be fraught with challenges, especially when there is a disconnect between the finance team and data specialists. Ian Paye shares a story about an organization that implemented an AI solution without fully understanding its workings. This lack of understanding led to difficulties during audits, as the team could not explain the AI's processes or outcomes. To avoid such issues, organizations must ensure that they have a strong data strategy and a clear understanding of how new technologies will integrate with existing processes. As Ian wisely notes, "It is not about running before you can walk."