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How EY's finance transformation team is approaching AI strategy
How EY's finance transformation team is approaching AI strategy

Yahoo

timean hour ago

  • Business
  • Yahoo

How EY's finance transformation team is approaching AI strategy

This story was originally published on To receive daily news and insights, subscribe to our free daily newsletter. As finance leaders face pressure to modernize and deliver ROI on their spending on technology and consulting, EY's finance transformation team is focused on putting emerging technologies to work not just for clients, but inside the firm itself. The team, led by Deirdre Ryan, global finance transformation leader, is playing a dual role: Helping CFOs navigate AI adoption while also piloting those same tools internally across EY's finance and consulting functions. In a recent interview inspired by her session at the Gartner Finance Executive Conference last month, Ryan explains how EY is using agentic AI to reshape FP&A workflows and why being 'client zero' is critical to building credibility in the market. She also discusses how CFOs can avoid repeating past mistakes from automation efforts, what it takes to lead a finance organization through transformation and how to do so with clarity, purpose and psychological safety. Global Finance Transformation Leader, EY Notable previous employers: Deloitte Dontech Dun & Bradstreet This interview has been edited for brevity and clarity. DEIRDRE RYAN: We feel very strongly that we have to be client zero. If we're going to advise clients on new technologies, we need to understand them ourselves and use them in real scenarios. We created a platform called EYQ. It's essentially a private environment where our people can interact with large language models securely. We made it accessible on laptops and mobile devices, and it's helped our consultants build hands-on understanding of the tools we're asking clients to adopt. As of recently, we've had over 150,000 consultants using it globally. It's one of the largest private LLMs in the world that EY developed in-house. In finance specifically, we've been building and piloting an agentic AI solution for FP&A. It looks like a normal dashboard, but what makes it powerful is that as actuals come in, it generates AI-driven insights automatically. That's helpful, but the real impact comes from scenario planning. It's built on driver-based forecasting, so we've identified the variables most correlated with forecast accuracy. You can adjust those and instantly see how the outlook changes. It goes even further. We've modeled it so that there are three AI agents working like analysts, with a manager agent that synthesizes and returns the best answer. You can ask something like, 'What would a one percent drop in GDP do to our forecast?' and it does the work. It's not removing human oversight — someone still has to take action — but it's changing the way FP&A work gets done. One client saw it and said, 'I have an army of silent FP&A analysts now.' That stuck with me because that is where the function is headed. That brings up another important point. Psychological safety is something we talk about a lot. When tools like this are introduced, it's natural for teams to wonder what it means for them. They may worry their work is being replaced or question what their future looks like in the function. This is where leadership matters. People entering the workforce today don't want to spend three days in Excel. They want to work with tools that help them think and act strategically. If you're in FP&A and you're given the choice between spending days building a model in spreadsheets or using agentic AI to get that answer instantly and then focusing your time on what to do about it, people are going to choose the latter. That's how you retain talent. If finance doesn't evolve, it risks losing its best people. So yes, we're advising clients on these tools, but we're also living it internally. We're applying it ourselves, and we're navigating the same leadership, talent and change management conversations that our clients are. That's what being client zero means. It's difficult for CFOs today because they still play a very traditional role. They must protect and preserve the assets of the organization and mitigate risk, but now they're being asked in a meaningful way to drive innovation within finance and across the enterprise. They need to understand disruptive technology well enough to make smart capital allocation decisions and guide the business forward. So, CFOs have to start getting their hands dirty. A lot of people I meet have seen demos or presentations, but haven't used the tools themselves. You have to understand the capabilities. Start small — maybe it's a proof of concept to help your team come up the learning curve — but that gives you insight into what these technologies can do. And from there, you can ask the bigger question: How do we apply this in a meaningful way to our finance organization? That's why our team tells CFOs to not just look at the tech, but think about the end game. What do you want your finance function to look like once you've integrated these tools? You have to do some things in parallel, which is tough because CFOs are already being asked to do so much. But this is one of those areas where you can't afford to take a one-track approach. You don't want to repeat what happened with robot process automation. Very few companies realized the value they expected. It became very democratized — people used it to automate a few hours of work here or there — but it didn't lead to large-scale transformation. That's the risk with AI and generative AI. The technology is unbelievably powerful, but without a strategy, you end up with fragmented efforts. You have to ask: Where is the puck going to be, and how do we get there? That means setting a clear end state, helping your finance team come up the learning curve, and avoiding what I call death by a thousand cuts — a little pilot here, a tool there, but no cohesive vision. So, yes, you want experimentation, and maybe that's informal — sharing a cool use case in a meeting. But it also needs to be backed by a very intentional strategy tied to how your finance function delivers value. For this, there are two big buckets I talk about with CFOs. One is productivity, and yes, you can absolutely drive productivity using these tools. We have great examples of that. And honestly, any of my competitors could give you the same 200 use cases for technology within finance. So I'm not saying that's a bad thing, but many of those use cases have been around for a long time. So if you're going to pursue productivity, you need to ask where you're going to get the biggest ROI. What's going to move the needle? The second bucket, and this is where I think the real value is, is decision insight. That's about using these tools to provide better analysis that helps your peers in the C-suite make smarter, faster decisions. And while that's much harder to quantify, I think it's equally important. Sometimes I ask CFOs to imagine a scenario. Let's pretend your data is perfect, it comes in on time and everything is consistently defined. Of course, that never happens, but let's just pretend. What is the kind of analysis you'd want to do on demand that could give you a competitive advantage? And it's interesting, because many CFOs haven't even had the [capacity] to think that way. They're so tied to traditional metrics like revenue and profitability that they haven't had the chance to ask, 'If I had access to better data and AI tools that let me explore it faster, what decisions could I make differently?' That kind of thinking is where AI can really change the game for finance. I think it depends on what you mean by 'a single source of truth'. We all know CFOs need to ensure the financial statements are accurate. And with technology of all types, there has to be a level of trust that the data is producing results that fairly represent the performance of the organization. Do I know any company whose data is 100% perfect all the time? No. Especially not large, acquisitive organizations. But what I always tell clients is, you have to prioritize. Not every data point needs to be perfect, but the ones that drive the most value do need to be consistently defined and captured across the enterprise. You could spend the next 10 or 20 years cleaning data, and it still wouldn't be perfect. The better approach is to identify the data that will drive meaningful analysis and ensure that it's reliable. That way, when you present insights to the executive team, you have confidence in the underlying information and the decisions it supports. It's about being intentional. Know what value you're trying to unlock, and focus on the data that supports that value. Recommended Reading How PwC's tax team is using agentic AI Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

Porsche considers selling MHP, possible valuation of over 1 bln euros, Handelsblatt reports
Porsche considers selling MHP, possible valuation of over 1 bln euros, Handelsblatt reports

Reuters

timea day ago

  • Business
  • Reuters

Porsche considers selling MHP, possible valuation of over 1 bln euros, Handelsblatt reports

BERLIN, June 27 (Reuters) - Porsche (P911_p.DE), opens new tab is looking to sell its consulting and IT services business MHP, which could possibly be valued at over 1 billion euros ($1.17 billion), the German business daily Handelsblatt reported on Friday, citing two people familiar with the matter. Porsche was not immediately available for comment. Handelsblatt cited the German carmaker as saying it was "continuously reviewing potential optimisations for its investments." ($1 = 0.8540 euros)

Open Secrets: How big consulting firms are cashing in on the climate crisis
Open Secrets: How big consulting firms are cashing in on the climate crisis

News24

time2 days ago

  • Business
  • News24

Open Secrets: How big consulting firms are cashing in on the climate crisis

A new investigative report released on Thursday by non-profit social justice organisation Open Secrets lays out how multinational consultancy firms are cashing in on the climate crisis. Titled The Climate Consultants: How management consultants cash in on the climate crisis, the investigation, led by Zen Mathe, Michael Marchant, Ra'eesa Prather and Ariella Scher, describes how technocrats in the private sector, paid from the public purse, are influencing government climate change policy, while continuing to consult for the very fossil fuel companies exacerbating the crisis. Using public documents, interviews, and responses to questions, the authors make a case that the government's increasing reliance on consultants to formulate responses to the climate and energy crises undermines state capacity in the long run and puts democracy at risk by side-lining the voice of the public. The report points out the massive size of the global management consulting market, which passed the $1-trillion (~R17 trillion) mark in 2023. The report notes there was a surge in demand for climate change consultancy in the wake of the 2015 Paris Agreement, which saw 195 countries commit to keeping global warming below 1.5 degrees above pre-industrial levels. (World temperatures exceeded 1.5 degrees above pre-industrial levels in 2024 - a stark warning that we are on track to break the Paris Agreement target, which refers to long-term warming over a 20-year period.) READ | Fatal heatwaves, food shocks loom for SA without urgent climate action, warns commission As part of their commitment, countries have to submit Nationally Determined Contributions every five years, which detail the actions being taken to reduce greenhouse gas emissions. This is where consultancy firms have been used to provide modelling and advice. Yet these firms, three large multinationals known as the Big Three – McKinsey, Bain and Boston Consulting Group (BCG) – and the consulting arms of the Big Four multinational accounting firms – Deloitte, EY, KPMG, and PwC – also continue to do 'lucrative work' for fossil fuel companies. 'While consultants will argue that they are a key part of trying to get fossil fuel companies to change, there is little evidence of them doing so. Instead, the evidence is that their clients are steadfastly engaged in misinformation, greenwashing, and lobbying to slow down reforms needed to address the climate crisis,' argues the report. The report claims there is no 'corporate wall' between the consultants working for fossil fuel clients and those advising the government on climate mitigation and adaptation strategies. 'They inevitably meet at the same water cooler … (and) chase the same goals of position and profit.' The report gives examples of how large consultancy firms promote oil and gas production in the short and medium term, which ignores scientific consensus that any further investment in fossil fuel will destroy any attempts to reduce carbon emissions to net-zero by 2050. The authors claim there is also evidence the consultancy firms 'actively facilitate new deals to pursue new fossil fuel developments'. These may be catastrophic for human life in the long term, but are good for profits in the short term. Just transition compromised The Climate Change Act defines 'just transition' as 'a shift towards a low-carbon, climate-resilient economy and society and ecologically sustainable economies and societies which contribute toward the creation of decent work for all, social inclusion and the eradication of poverty'. A just transition is essential, argue the authors, if South Africa is to undo the damage to human health and the environment caused by our fossil-fuel and mining-based economy, along with the inequality it has created. The report describes how much of South Africa's Just Energy Transition (JET) plan is being financed by a $12.8-billion pledge from France, Germany, the United Kingdom and the European Union. Most of the money so far provided is in the form of concessional loans, which means it still has to be paid back, albeit at favourable rates. The terms and conditions of these loans are not made known. 'According to the JET Grants Register, around 65% of the committed grant funds have gone to private corporations and organisations as implementing entities,' the report says. 'Less than 25% of the grant monies go to local implementing entities, such as non-governmental organisations, public sector entities, and universities. More often than not, there is also a direct link between where the money comes from (the donor country) and where the money goes (the implementing entity).' One example is the money paid to PwC's consulting arm, which is the implementing entity for four Just Energy Transition projects worth more than R130-million. These projects are funded by the UK government. On two large projects in Mpumalanga, PwC is working with Adam Smith International, a UK firm which has been involved in several scandals. While the UK government will count all its grant funding as a contribution to South Africa's just transition, much of it ends up paying consultants' salaries. 'It is likely that money earmarked as grant funding to assist Mpumalanga's just transition is contributing to the rent for Adam Smith International's swanky offices in central London,' note the authors. The report says that PwC was the external auditor for SAA and looked the other way when executives Dudu Myeni and Yakhe Kwinanan led the state airline to financial ruin. Similarly, Open Secrets describe how Deloitte, which was the external auditor for Steinhoff for 20 years until it collapsed, and is implicated in the possible audit failure at Tongaat Hulett, received R145-million from US grants to be the implementing agent in a number of Just Energy Transition-related projects. READ | Climate Investment Funds approve R47bn coal-exit plan for SA State capture's legacy Open Secrets also dig into the Boston Consulting Group (BCG). The report notes that unlike McKinsey and Bain (which was banned in 2022 by National Treasury from doing business for the state for 10 years), BCG was not found to be involved in South Africa's state capture. The scrutiny and mistrust of McKinsey and Bain has been an opportunity for BCG to land numerous contracts, 'especially in the climate and energy space', with the result they are 'playing a large role in many important public policy processes, with little scrutiny or public outcry'. The Open Secrets report reveals a 'revolving door', allowing consultants to move across firms, often to avoid accountability for wrongdoing. Several members of the team at Bain who helped gut SARS during state capture 'moved to BCG within a short period of time after the full extent of Bain's role in the attack on SARS was revealed'. While BCG has scored R30.2-million from grant funds for the Just Energy Transition Plan in South Africa, Open Secrets names a partner at BCG who they claim was one of a number of former Bain consultants involved in the SARS scandal. One of BCG's largest corporate accounts is Standard Bank. Adam Ikdal, who Open Secrets states had a 25-year career with BCG, including a stint as managing partner, joined Standard Bank in 2022 as chief of strategy. 'The relationship is noteworthy,' remark the authors, given that Standard Bank announced a year ago that it would finance the controversial $5-billion East African Crude Oil Pipeline project despite massive criticism. This is but one example of why consultancy firms such as BCG should be 'viewed with caution', state the authors, who with this report attempt to shine a light on opaque operations that maintain a 'business as usual' status quo, while profiting from the crisis this approach has caused. Open Secrets sent requests for comment to the parties mentioned in the report: BCG responded, on behalf of its partners, that it is committed to the law and regulations, and that it cannot provide details on its individual projects due to confidentiality agreements. Standard Bank said that it had contracted BCG prior to Ikdal joining the company. Adam Smith International said it had 'implemented comprehensive governance and leadership reforms, strengthened our compliance processes, and introduced robust ethical and transparency policies'. PwC did not respond to questions, says Open Secrets. Deloitte said: '[W]e were unable to make a direct link between the grant payments listed in the Registry and Deloitte Africa's records … other Member firms within the Deloitte network may have been involved in the delivery of these projects … The information provided in the Registry was fairly limited, and at a specific point in time. Accordingly, we are unable to comment on the other questions raised related to these grant payments specifically.'

Andersen Consulting Strengthens Capabilities with Collaborating Firm Market One
Andersen Consulting Strengthens Capabilities with Collaborating Firm Market One

National Post

time2 days ago

  • Business
  • National Post

Andersen Consulting Strengthens Capabilities with Collaborating Firm Market One

Article content SAN FRANCISCO — Andersen Consulting continues the expansion of its global platform through a Collaboration Agreement with Market One, a consulting firm based in Argentina that specializes in end-to-end commercial solutions. Article content Headquartered in Argentina, Market One is a leading consulting firm specializing in end-to-end commercial transformation. Founded in 2009 by Partners Esteban Neville and Jerónimo Fernández Abeijón, the firm brings a hands-on, results-driven approach to every project—accompanying clients from strategy to execution. Its expertise spans strategic consulting, commercial optimization, technology enablement, and insight-driven decision-making. With a proven track record of over 1,200 projects across more than 20 countries, Market One works with some of the most recognized brands in the world, helping them strengthen their commercial capabilities and achieve sustainable growth. Article content Article content 'We were born to solve, but how we do it sets us apart,' said Esteban Neville, co-founder of Market One. 'Our commitment goes beyond advising—we co-create, we implement, and we stay involved until results are achieved. Joining Andersen as a collaborating firm significantly amplifies our value proposition—unlocking access to a global organization of top-tier consulting professionals. This collaboration enables us to scale our impact globally while maintaining the agility and closeness our clients value most.' Article content 'Market One's deep market knowledge and proven ability to deliver data-driven strategies will enhance Andersen Consulting's offerings,' said Mark L. Vorsatz, global chairman and CEO of Andersen. 'Their personalized, results-focused approach complements our commitment to providing clients with comprehensive, end-to-end consulting services.' Article content Andersen Consulting Article content is a global consulting practice providing a comprehensive suite of services spanning corporate strategy, business, technology, and AI transformation, as well as human capital solutions. Andersen Consulting integrates with the multidimensional service model of Article content , delivering world-class consulting, tax, legal, valuation, global mobility, and advisory expertise on a global platform with more than 20,000 professionals worldwide and a presence in over 500 locations through its member firms and collaborating firms. Andersen Consulting Holdings LP is a limited partnership and provides consulting solutions through its member firms and collaborating firms around the world. Article content Article content Article content Article content Article content Article content

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