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Our expert for questions
Gori von Hirschhausen
Europe Finance Consulting Leader and Partner at PwC Germany
Tel: +49 89 5790-6698
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The Digital Transformation of the Finance Function amid Cost Pressures, AI, and Uncertainty
Economic conditions are becoming increasingly challenging: the fragility, anxiety, non-linearity, and incomprehensibility of a BANI world present CFOs with ever-new, often barely predictable challenges. At the same time, Artificial Intelligence (AI) is omnipresent – rapidly changing how finance departments operate and unlocking enormous potential across all financial processes.
The study "The Digital CFO 2026" makes it clear: no one doubts the strategic importance of digitalisation anymore – yet, in practice, the majority of companies are still in their infancy. What sets successful pioneers apart is primarily a clear digital agenda, reliable data quality, and the targeted use of new technologies.
“Digitalisation is top of the agenda in many finance functions. At the same time, existing technologies are not yet being implemented consistently enough — for example, in automating standard processes or using data-driven analytics.”
Study Overview
For the study "The Digital CFO 2026", CFOs from publicly listed as well as larger non-listed companies in Germany, Austria, and Switzerland were surveyed. The focus was on the current state of digitalisation within finance functions, the use of digital technologies — including large language models — as well as organisational, personnel, and strategic success factors.
Aspiration: Digitalisation is a Top Priority for CFOs
The results paint a clear picture: digitalising the finance function continues to be a very high priority. Many companies are investing significant time, budget, and management attention in digital initiatives with the aim of making processes more efficient, reducing costs, and improving decision quality. At the same time, the study shows that many companies are still at the beginning or in the midst of their digital transformation journey—without yet consistently realising the desired effects.
The overwhelming majority of CFOs (146 out of 207, or 71%) answered the question “Digitalisation is a high priority in my finance department” with a score of 6 or 7 on the Likert scale used in our study. Only a few CFOs assign low priority to digitalisation. These CFOs mostly work in smaller, non-listed companies – the larger the company, the more likely CFOs are to place high priority on digitalisation.
Reality: Digital Maturity of Finance Departments Still Low
While there is considerable activity around digitalisation in many organisations, the actual maturity level often falls short of their own expectations. Digital initiatives are frequently implemented in isolation without a clearly defined overall strategy. As a result, many organisations lack robust roadmaps that would enable consistent scaling and sustainable impact.
Notably, CFOs rarely see significant organisational resistance or structural budget constraints as limiting factors. Investments in digitalisation are generally made as planned and with broad support from top management. The key lever lies rather in better exploiting the potential of existing digital technologies — particularly with regard to advanced applications and the increasing use of Artificial Intelligence. It is clear here: the ambition is high, yet successful, integrated use of these technologies is still pending in many companies.
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The Digital CFO 2026
AI is Fundamentally Transforming the Finance Function
Large Language Models (LLMs) are arguably the most significant innovation in digital technologies in recent years. The study reveals that while AI applications are increasingly used across organisations, their adoption within finance remains more cautious. Across all surveyed companies, the average intensity of use scores 4.12 out of 7, compared to just 3.8 within finance functions.
At the same time, many companies already have LLM policies and dedicated AI teams in place. The crucial next step is to systematically integrate AI into financial processes – from planning and forecasting to reporting and risk management.
Challenges Faced by CFOs
It is clear that the journey from strategic ambition to effective implementation of a digital finance function remains fraught with hurdles. CFOs identify moderate challenges including limited financial resources, a shortage or insufficiency of employee know-how, and a sometimes low willingness to change within organisations. Additional technical and organisational obstacles include fragmented IT landscapes and unclear decision-making structures.
Notably, strategic support from the executive board or supervisory board is rarely seen as a barrier – willingness to digitalise is generally strong at top management level.
Systematic differences also emerge based on company size and listing status. Larger and publicly listed companies tend to perceive most digitalisation hurdles as less severe. Industry differences are also apparent: CFOs in the Technology, Media and Telecommunications (TMT) sector, as well as Transport and Logistics, consider digitalisation barriers significantly less restrictive compared to other sectors.
Additional Key Findings
- Technology in Transition
- Efficiency & Decision Quality
- Data as a Success Factor
Technology in Transition
Currently, technology use in finance remains moderate, but CFOs expect a significantly increased adoption of technologies (particularly in controlling, accounting, and treasury) over the next three years—especially LLMs and AI for forecasting.
Efficiency & Decision Quality
The primary goals of digitalisation in the finance function are cost reduction and improved decision-making quality. Both objectives are regarded by CFOs as equally important. Furthermore, CFOs seek to achieve greater reliability, consistency, and transparency of processes, earlier risk detection, and an enhanced competitive position through digitalisation.
Data as a Success Factor
Data is decisive for digitalisation success. According to our CFO Study 2026, mature data governance directly correlates with the success of digital initiatives – yet at the overall enterprise level, many organisations remain at a moderate maturity level. This presents enormous untapped potential.
“The lever for the next productivity leap therefore lies less in additional budgets and more in the targeted use of technology — particularly AI-based solutions — and the associated development of capabilities.”
Gori von Hirschhausen,Europe Finance Consulting Leader and Partner at PwC GermanyDownload the full study now
“The Digital CFO 2026”
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Methodology
The WHU – Otto Beisheim School of Management, in cooperation with the VU Amsterdam and PwC Germany (PwC), examined the degree of digitalisation in finance functions of companies in Germany, Austria, and Switzerland. The study is based on a survey of 207 CFOs from publicly listed and larger non-listed companies across these countries. The survey gathered assessments on digitalisation strategies, technology use, data maturity, organisation, and personnel. The survey was conducted online using standardised questionnaires with seven-point Likert scales. Banks, insurance companies, and small businesses were excluded from the sample.
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Gori von Hirschhausen
Partner, Europe Finance Consulting Leader, PwC Germany
Tel: +49 89 5790-6698
