The AI Paradox in Finance: High Hopes, Slow Progress
New Zuora study finds SaaS finance leaders are overburdened by manual workflows and fragmented systems
Zuora, Inc., a monetization platform for subscription-based businesses, recently released a commissioned research study, The Modern Finance Leader: How Technology Gaps Are Limiting Strategic Impact. The report, based on a survey of over 900 senior finance and accounting leaders from North America, the UK, and France, examines how outdated technologies and manual order-to-cash (O2C) processes are limiting the strategic impact and agility of finance teams, particularly within Software-as-a-Service (SaaS) organizations. The findings underline a growing modernization dilemma facing finance leaders: high expectations to drive business innovation while constrained by legacy systems and high manual workloads.
“Without clear ownership of this process [O2C], finance teams are too often held back, unable to experiment with pricing changes or launch new offerings as rapidly as the market demands.” — Zuora CFO Todd McElhatton
Report Highlights
1. Strategic Expectations vs. Technology Limits
89% of finance leaders (88% in SaaS) are increasingly expected to become strategic advisors.
70% (92% in SaaS) say legacy tech hinders their ability to meet these expectations.
For SaaS firms, almost all leaders (100%) say manual data issues and reconciliation tasks block strategic focus, with 42% reporting this happens “often.”
2. Persistent Manual Work Despite AI Investments
93% of finance leaders prioritize AI capabilities during technology investments; 61% SaaS organizations consider AI fluency very important for hiring.
79% of teams (97% in SaaS) are "swamped" with manual tasks; 88% cite reconciliation as a major blocker to strategic work.
The anticipated efficiency gains from AI have yet to materialize at scale.
3. Order-to-Cash (O2C) Ownership and Fragmentation
82% of leaders report IT lags on finance system updates.
82% of SaaS leaders say fragmented O2C ownership creates operational difficulties and undermines growth and controls.
Only 56% of SaaS companies have a dedicated finance systems team inside the finance department; often, IT retains ownership17.
4. Impact on Innovation and Business Scalability
74% believe their systems cannot support the complex pricing and revenue models needed to stay competitive; in SaaS, this jumps to 97%.
86% of SaaS leaders call the lack of system adaptability a frequent pain point.
95% say usage-based models complicate revenue forecasting.
O2C processes often fail: 52% (71% SaaS) struggle with scaling usage-based pricing, 49% (82% SaaS) post-acquisitions, and 53% (82% SaaS) during product-led growth (PLG) to enterprise transitions.
Bottom Line Insights
While the opportunity is great and the objective clear, the road to autonomous finance faces several hurdles:
Finance modernization is critical for business agility; companies must invest in technology that reduces manual work and supports innovative business models.
Clear O2C ownership and cross-functional collaboration (especially between finance and IT) are essential to eliminate bottlenecks.
AI is being prioritized but requires better integration and upskilling to realize its potential benefits.
Modern finance teams are trapped in a catch-22: They’re tasked with driving strategy and innovation but are held back by old systems and high manual workload, especially around O2C and revenue processes. To remain competitive and meet escalating expectations, organizations must prioritize the modernization of finance technologies and clarify ownership of critical systems.