**London**: A recent survey by Dynamo Software reveals that 70% of fund accountants see automation and AI as the top trend by 2025, while highlighting challenges such as time-consuming reporting and ESG compliance, which underscore the industry’s need for tech adaptation and human oversight.
A recent survey conducted by Dynamo Software has highlighted the significant changes and challenges facing the private equity and venture capital fund accounting sector, particularly in relation to the rise of automation and artificial intelligence (AI). The findings, featured in the Dynamo Frontline Insight Report, reveal the opinions of fund accountants regarding the industry’s evolving landscape.
The survey, which gathered data from participants over the past two months, indicates that a staggering 70% of fund accountants believe that the adoption of automation and AI will be the most influential trend in their field by 2025. Furthermore, 61% agree that these technologies are likely to play a major role in fund accounting. However, 5% of respondents express skepticism, predicting no significant reliance on automation and AI in the coming year.
Nield Montgomery, managing director at Dynamo Software, commented on the complex nature of alternatives fund accounting, noting, “Fund accountants clearly see the opportunity to simplify complexity, reduce manual tasks, and flag irregularities, which frees time for strategic analysis.” He emphasised the continuing need for human oversight to interpret intricate financial data, a sentiment echoed by those expressing uncertainty about how transformative technology might prove to be in the immediate future.
The survey also identified time-consuming reporting processes and manual data entry as the primary challenges faced by fund accountants, with 64% and 61% highlighting these issues respectively. In addition, 70% of respondents underscored the importance of software integration between systems to enhance their workflows.
As demands for enhanced reporting and analytics increase, 60% of fund accountants indicated that improved integration of data flow between different platforms is critical for ensuring accuracy and compliance. Montgomery pointed out that “seamless data flow between platforms becomes critical for accuracy, efficiency, and compliance,” illustrating the growing need for compatible systems.
Another notable aspect of the survey is the uncertainty surrounding environmental, social, and governance (ESG) reporting mandates. The responses were nearly split, with 49% anticipating a substantial impact on their work in 2025, while 45% expect minimal to no effect. Montgomery remarked on the lack of industry standards in ESG reporting, which can lead to inconsistencies that complicate compliance and operations.
In terms of technology preferences, 66% of respondents expressed a preference for configurable software solutions that can adapt to the specific needs of their firms, rather than standardised, out-of-the-box products. Data security was also a major concern, with nearly 80% of fund accountants rating it as extremely important.
Overall, the survey underscores the pressing need for the fund accounting industry to adapt to technological advances while navigating complex regulatory demands. As the landscape evolves, the role of technology, alongside the indispensable value of human judgement, seems crucial for successful adaptation in the sector.
Source: Noah Wire Services
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