The Deloitte Center for Controllership and Institute of Management Accountants (IMA) have reported that finance and accounting professionals are increasingly using AI, machine learning, and advanced analytics to boost business performance.

According to the survey, titled Unlocking profitability insights: How companies are leveraging data to enhance business performance, the development was despite the continued dominance of traditional cost accounting and profitability management methods.

The survey, which included more than 440 finance and accounting managers, directors, controllers, and CFOs, found that spreadsheets remain the most widely used tool for performance modelling.

Nearly 30% of the respondents relied on them compared to just 3% using AI analytics and 1% employing blockchain.

Despite this, many professionals anticipate significant changes, with 19% expecting emerging technologies to automate routine tasks and processes.

Meanwhile, 18% foresaw use of real-time data analysis and reporting and another 18% predicting a shift from historical to predictive analytics models.

More than half of the respondents (53%) said their organisations have either integrated (24%) or plan to integrate (29%) technologies such as AI, blockchain, or advanced data analytics into their cost and profitability management models.

The survey also explored the use of cost-to-serve analytics, revealing that only 38% of organisations utilise this approach to assess business goals or adapt strategies to boost profits.

Additionally, 54% of the respondents indicated a lack of available reporting or a need to enhance the transparency of cost and profitability reporting within their organisations.

Complex and disparate systems were cited as the primary barrier to obtaining meaningful cost data by 15% of respondents, followed by 14% citing data availability issues due to interdependencies between functions, operating units, and departments.

Nearly 12% said reduced time for data collection was a benefit of adopting emerging technologies, reported by professionals.

While 11 % said it could increase efficiency in reporting and analysis preparation, and 10% noted that the move will improve accuracy in cost estimations.

Deloitte & Touche controllership partner Colleen Whitmore said: “Traditional business performance management methods are not as responsive or as precise as newer tools are at generating data and insights on drivers of cost, critical in today’s fast-paced and dynamic operating environment.

“As such, many controllers and CFOs recognise that transformation in cost and profitability management approaches is needed to drive operating performance and better strategic decision-making.”