AI, Capital Allocation, and Risk Are Reshaping the CFO Role, Wolters Kluwer Report Finds

Wolters Kluwer | CCH Tagetik has released its 2026 Future Ready CFO Report, a global survey examining how finance leadership teams are adapting to a more volatile and technology-driven operating environment. Drawing on responses from 1,672 finance leaders, the research shows how technology, risk management, and capital allocation are reshaping finance.

The report argues that the finance function increasingly acts as a “performance orchestrator,” coordinating planning, prediction, and strategic action as economic conditions, regulations, and business assumptions change. The research forms part of Wolters Kluwer’s broader Corporate Performance and ESG portfolio, which includes the CCH Tagetik corporate performance management platform.

AI Becomes the Most Influential Technology in Finance

In the survey, 47% of finance leaders identify AI adoption and implementation as the global trend with the greatest impact on their organizations, ahead of interest rate volatility (38%) and evolving regulatory complexity (37%).

Finance leaders also expect AI and advanced analytics to reshape core finance activities fover the next three years, including financial modeling (63%), financial reporting (62%), capital allocation (62%), budgeting and forecasting (62%), and scenario planning (60%).

At the same time, respondents are nearly evenly split between viewing AI as a top opportunity (33%) and a top disruption (32%), with concerns centered on implementation cost versus ROI (41%), regulatory and compliance risks (40%), and data quality (37%).

Capital Allocation Decisions Face Rising External Pressure

Finance leaders report that capital allocation decisions are increasingly shaped by external pressures rather than discretionary investment priorities.

Respondents identify AI adoption and implementation as the leading influence on capital allocation and resource planning (43%), followed by interest rate volatility and changing capital markets (42%) and evolving regulatory and compliance complexity (37%).

These factors are raising the stakes around how organizations deploy capital. Investments tied to AI capabilities, regulatory requirements, and financing conditions are becoming harder to defer, forcing finance leaders to evaluate technology adoption, compliance obligations, and market risks simultaneously.

Concerns about return on investment remain part of that equation. Implementation cost versus ROI is the leading concern related to AI adoption (41%), reflecting the financial scrutiny surrounding large-scale technology initiatives even as organizations continue expanding AI investments.

Finance Technology Modernization Reveals a Digital Maturity Gap

Most finance organizations report progress in modernizing their technology environments, but relatively few have reached advanced levels of digital maturity.

The findings show that 69% of finance teams classify themselves in early or established stages of digital maturity, while only 18% describe their organizations as digitally advanced, defined by real-time capabilities, automation at scale, and continuous optimization.

These findings suggest that many finance functions now operate with integrated systems and digitized workflows, but have not yet reached the real-time capabilities and automation associated with advanced digital maturity.

The report notes that while legacy infrastructure is no longer the primary barrier to transformation, organizations are still working to translate technology investments into faster insights and more automated decision processes.

Remaining obstacles increasingly reflect organizational factors. Respondents identify resistance to change (27%), lack of digital skills (19%), and budget or resource constraints (15%) as the most common barriers to further digital transformation inside finance teams.

Economic Volatility and Regulation Expand the CFO Risk Mandate

Finance leaders report operating in an environment defined by persistent economic and regulatory uncertainty. The report identifies several external pressures expected to significantly affect finance organizations, including shifting capital markets (38%), supply chain disruptions and trade tensions (32%), ESG pressures (30%), and geopolitical instability and economic uncertainty (29%).

These conditions are expanding the scope of finance leadership. Interest rate volatility and changing capital market conditions are expected to materially affect the CFO role for 39% of respondents, reinforcing the view that risk management is becoming a continuous responsibility inside finance teams.

Advanced analytics and AI are expected to play a growing role in how organizations respond to that volatility. About 60% of finance leaders say AI and advanced analytics will drive major or transformational change in financial planning and scenario modeling over the next three years, supporting more dynamic forecasting and risk assessment.

Regulatory complexity also continues to shape finance priorities. Evolving regulatory and compliance requirements are identified by 37% of respondents as a major force affecting their organizations, underscoring the expanding role finance leaders play in aligning compliance obligations with strategic planning.

How CCH Tagetik Supports the Evolving Finance Function

The report highlights how the technology stack supporting the office of the CFO is expanding alongside finance’s growing responsibilities for planning, capital allocation, and risk management. Organizations are adopting corporate performance management platforms that connect planning, reporting, and operational data.

Wolters Kluwer’s CCH Tagetik platform sits within this category, supporting processes such as budgeting, forecasting, financial close and consolidation, and regulatory and ESG reporting on a unified data model. These capabilities aim to provide finance teams with a consistent view of performance across planning cycles and reporting requirements.

The platform also incorporates AI-driven forecasting, anomaly detection, and scenario modeling tools. In the context of the report’s findings, these capabilities align with the growing emphasis on continuous planning, capital allocation analysis, and risk-informed decision-making within the finance function.

What This Means for SAPinsiders

• AI investment is becoming unavoidable. Finance leaders increasingly face competitive pressure to invest in AI even before financial returns are fully established. As AI capabilities begin shaping planning, modeling, and capital allocation decisions, delaying adoption may create greater strategic risk than uncertain ROI.
• Digital maturity now extends beyond infrastructure. Many finance teams report integrated systems and digitized workflows, yet relatively few reach advanced digital maturity. Progress increasingly depends on translating technology investments into decision processes, analytical capability, and operational adoption across finance teams.
• Finance is becoming a coordination hub for enterprise decision-making. Rising volatility, regulatory pressure, and technology investment are expanding finance’s role in aligning strategy, risk management, and capital allocation. The CFO function increasingly connects operational data, financial planning, and enterprise decision-making.