Cutting costs a top priority for CFOs despite predictions of growth

Chief financial officers of organisations in Ireland are predicting strong growth in their companies this year, according to a new report from EY.

The survey of 150 CFOs revealed that respondents are forecasting an average 11pc growth for 2024.

However, cutting costs remains a top priority despite optimism for a strong economic performance. Around 84pc of CFOs surveyed said that their strategic focus over the next five years is reducing costs and improving efficiency.

Half of those included in the report also pointed to a lack of talent and talent retention at present. Ireland’s tight labour market emerged as one of the key challenges which could impact the desired level of growth, the survey showed.

The estimated number of people in employment in the final three months of 2023 was more than 2.7 million, according to the Central Statistics Office. This was up 3.4pc compared with a year earlier.

A further 13pc of CFOs said they were considering longer term opportunities for expansion through M&A, up 4pc from 2023.

Almost a fifth added that investment in technology was a top priority for growth in 2024, up 4pc from 2023. This included spending on cybersecurity for almost 40pc of organisations.

However, this was down from 60pc recorded last year, which could indicate that investment in the technology has plateaued after “significant increases” in the past number of years.

Less than a third of the companies included in the survey said they now have a cybersecurity task force, up from 8pc last year.

This increase in spending on technology does not include investments in artificial intelligence, the survey found. Just 26pc said they have used AI to improve efficiency or to automate manual tasks and risk detection.

A further 15pc said they have used generative AI in the workplace, with only 6pc reporting that they plan to use advanced AI to improve the financial operations of the business or to acquire new skills in this area over the next two years.

Around 9pc of CFOs said they would integrate AI into the finance function over the next five years.

“CFOs and finance leaders are optimistic about strong growth in their organisations this year,” EY’s assurance partner Derarca Dennis said.

“It’s imperative that CFOs continue to make cybersecurity a priority to ensure their organisations are resilient enough to sustain and counter relentless cyber onslaughts,” she added.

Reporting On:independent.ie