Why professional judgement matters more than ever for today’s CFOs

This article was originally published by The Mandarin: Why professional judgement matters more than ever for today’s CFOs.

Artificial intelligence (AI) can support the 'how' of finance, but it cannot replace the judgement required to explain why numbers matter, how risks should be weighed, or what decisions mean in practice.

As AI becomes more embedded in finance functions, Chief Financial Officers (CFOs) are seeing the nature of their role change in tangible ways. Analysis is faster, reporting is increasingly automated and financial outputs are more standardised. Yet the core responsibility of the CFO (accountability for advice, judgement and decisions), has not diminished. If anything, it has become more visible.

Across the profession, finance leaders are reflecting on what this shift means for capability and leadership. While technology continues to transform how financial work is done, it also raises a more fundamental question: how finance preserves and strengthens professional judgement as the pace of change accelerates. 

The challenge facing the profession is not whether technology will succeed or fail, nor how quickly it will be adopted. It is whether, in the pursuit of efficiency and automation, enough attention is given to sustaining the capability that gives finance its strategic value.

Professional judgement remains the core value of finance 

For experienced CFOs, the value of finance has never rested on producing numbers alone. Its real impact lies in interpretation, translating financial information into advice that shapes organisational outcomes. 

Professional judgement shows up in how finance leaders:

• Explain why numbers matter to non-financial stakeholders
• Connect financial signals to broader strategy and policy objectives
• Frame risk, trade offs and options in complex environments
• Coach leaders through uncertainty rather than presenting a single 'right answer'.

As technology accelerates the production of financial outputs, this layer of judgement becomes more, not less, important. Greater standardisation and automation can improve consistency and efficiency but also places increased emphasis on the human capability that sits behind those outputs.

AI can generate forecasts, draft commentary and highlight anomalies. It cannot own decisions. Accountability remains firmly human, and in most organisations, it ultimately sits with senior leaders. As automation expands, that responsibility becomes more concentrated at the top of the organisation.

AI is reshaping where pressure sits

A consistent observation across the profession is that AI does not reduce the role of senior finance leaders, it reshapes it.

CFOs and their leadership teams are increasingly required to:

• Review larger volumes of work generated at speed
• Validate AI assisted outputs without always having visibility over how conclusions were reached
• Apply judgement where data is incomplete, ambiguous or contested.

Alongside this, people still need to be developed and supported, while systems require governance, calibration and oversight. Senior leaders play a critical role in guiding both teams and technology, ensuring appropriate use and consistency in decision making.

In government and the public sector, these dynamics operate within environments shaped by high levels of accountability, security and governance. Technology adoption often needs to align with established risk and policy frameworks, while expectations around performance, efficiency and value delivery remain high. In this context, professional judgement is essential in balancing ambition with realism and ensuring that innovation strengthens, rather than complicates, accountability.

AI can deliver meaningful uplift over time, but judgement remains central to how those benefits are realised in practice.

Evolving how professional judgement is developed 

Alongside technological change, finance leaders are increasingly focused on how professional judgement is built and sustained over a career.

Education and accreditation pathways continue to provide a strong technical foundation for finance professionals, particularly in standards, compliance and core accounting disciplines. These capabilities are essential and remain non negotiable.

As roles evolve, however, there is growing recognition of the importance of complementing technical excellence with broader commercial awareness and decision making capability. This includes:

• Understanding how financial information informs real world decisions
• Linking analysis to strategy, risk and outcomes
• Developing confidence to advise, challenge and influence constructively.

AI tools can accelerate outputs, but they also increase the importance of context and consequence. The opportunity for the profession lies in continuing to evolve learning and development approaches so they support both technical rigour and the practical application of judgement in complex environments.

Shifting the perception of finance

Capability is not only technical, it’s cultural. 

A familiar challenge for many finance leaders is the perception of finance as a gatekeeper rather than a partner. When this view prevails, engagement often occurs late, options narrow and trust can be undermined.

Conversely, finance functions that are positioned as enablers, engaging early, framing choices and supporting informed decision making within constraints, can play a powerful role in organisational outcomes. This approach relies heavily on judgement: understanding priorities, articulating risk clearly and helping leaders navigate trade offs.

In public sector settings, where scrutiny is inherent and decisions are often contested, the ability to advise with clarity, confidence and credibility is particularly important.

A practical path forward: strengthening capability in practice 

There is increasing focus among finance leaders on how learning and development translates into daily decision making.

Rather than emphasising volume, effective capability development is often characterised by:

• Targeted financial acumen
• Learning grounded in real organisational scenarios
• Development that supports professionals at different career stages, including senior leaders.

BDO recently partnered with CA ANZ to host a roundtable in Canberra focused on public sector CFO’s current future and capability needs.   

CA ANZ Head of Public Sector, Australia Andrew Parker shared that there continues to be a strong focus on how education, accreditation and capability development is evolving in step with the changing role of CFOs and finance leaders. 

“Strengthening capability goes beyond acquiring more technical knowledge - it’s about equipping finance leaders with the judgement, leadership and adaptability required to operate in increasingly complex environments. CA ANZ is committed to developing approaches that encourage professionals to think differently about finance, focusing on how capability is applied in practice as expectations of CFOs and finance leaders continue to evolve,” Parker said.

Protecting what matters most

Data, automation and AI will continue to reshape finance functions. These tools offer real benefits and will increasingly form part of how financial work is done. What they cannot replace is the professional judgement that underpins trust, accountability and sound decision making.

For CFOs, particularly in government and the public sector, the challenge is not choosing between technology and judgement. It is ensuring they work together and that the systems used to develop finance professionals continue to strengthen both. Ultimately, the value of the profession will be measured not by how quickly answers are produced, but by how confidently finance leaders help organisations make sound decisions when the path forward is not clear.

How we can help

BDO’s CFO advisory services work with government and public sector leaders to strengthen financial judgement, uplift capability and navigate the practical implications of AI, risk and accountability. Learn more about our government and public sector expertise.