RSM and Corporate Board Member Detail Digital Transformation Strategies

CHICAGO – (May 10, 2023) – RSM US LLP (“RSM”) – the nation’s leading provider of assurance, tax and consulting services focused on the middle market – and Corporate Board Member, the market-leading publication for public company board members, together have released The Race to Digitalization: How ChatGPT and New AI Capabilities Are Putting Pressure on Companies to Accelerate Their Digital Transformation. The research report details how emerging innovations are increasing potential external disruption and operational risks to companies, and how companies are adapting strategies in response.

“Boards are in a unique position to guide how organizations align new innovations to overall business strategy,” said Rhys Morgan, North American technology advisory leader within RSM’s management consulting practice. “Digital transformation is critical for today’s modern company. Various technological advances, including AI, are developing rapidly and can help support key business initiatives focused on increasing productivity, efficiency and the customer experience. However, companies must be prepared to act quickly to avoid missed opportunities.”

The research report yielded several key findings, including that 56% of public company directors feel they are “pacing along” on their digital journey—not ahead of peers, but not behind either. Additionally, 48% of survey respondents believe digital technologies will be critical to achieve growth objectives and overcome obstacles in 2023-24, with AI moving up to the number two spot on the list of most critical technologies for the year ahead.  

“The research uncovers a variety of opportunities for boards to help their organizations gain ground in the marketplace,” said Matt Bradvica, tax digital strategy leader with RSM US LLP. “Whether a business adopts technology to simplify compliance, improve product development, streamline operations or strengthen risk oversight, it’s clear that digitized business functions supported by real-time data, automation and analytics can reduce costs and risks, spark innovation and crystallize business insights.”

“With the fast-growing popularity of generative AI and other open-source technologies, boards and management teams have a tough job on their hands: understanding the risks associated with both the use and non-use of these applications and how they can best serve the interest of the company in the long run,” said Melanie Nolen, research editor for Corporate Board Member and director of research for parent company Chief Executive Group. “Early adoption can seem like a winning strategy, but it carries its own set of risks—as does waiting too long to deploy certain capabilities. It’s not an easy line to navigate.”

For now, 81% of companies, according to the survey, are focusing their use of AI on streamlining operations, while 39% said they are or would consider using the technology to enhance sales and business development, and only 18% said the same for the tax function.

Nearly three-quarters (73%) of board directors in the survey said that their companies have either implemented or are discussing implementing digital technology to improve tax and/or accounting processes, up from 62% last year. Survey data also shows that 53% of respondents believe automating manual or labor-intensive tasks is a top priority for new technologies in their tax/finance function, while 41% are prioritizing improving data quality, transparency and reporting. This data is consistent with last year’s report.

Survey data was collected by RSM and CBM from 178 U.S. public company board members from November 2022 to January 2023. Respondents represented the complete spectrum of company sizes. The report included participants from a wide variety of major U.S. industries, led by financial services; technology; life sciences; automotive and transportation; consumer products and retail; power and utilities; and real estate, hospitality and construction.

About Corporate Board Member
Corporate Board Member, a division of Chief Executive Group, has been the market leader in board education for 20 years. The quarterly publication provides public company board members, CEOs, general counsel and corporate secretaries decision-making tools to address the wide range of corporate governance, risk oversight and shareholder engagement issues facing their boards.

Corporate Board Member further extends its thought leadership through online resources, webinars, timely research, conferences and peer-driven roundtables. The company maintains the most comprehensive database of directors and officers of publicly traded companies listed with NYSE, NYSE Amex and Nasdaq. Learn more at BoardMember.com.