Latest news with #DeloitteAustralia
New York Post
16-05-2025
- Business
- New York Post
Gen Z, Millennial workers reveal biggest job fear: ‘Very grim for us white collar employees'
They're young, they're tech-savvy, and they're not here to play by the old rules — but there's one thing that scares them out of their wits. A new survey from Deloitte has revealed what's really driving Gen Z and millennial workers in Australia – and it's not just job titles or paychecks. Instead, these generations are demanding purpose, flexibility and mental wellbeing from their employers. And if they don't get it? They'll walk. With Gen Zs and millennials expected to make up 74 percent of the global workforce by 2030, their expectations are setting the tone for the future of the workplace. Chasing purpose, not promotions Forget the corner office. What young Aussies really want is a job that means something. According to Deloitte's 2025 Gen Z and Millennial Survey, a massive 94 per cent of Gen Zs and 92 per cent of Millennials say meaningful work is a top priority. And they're putting their money where their mouths are – 40 per cent of Gen Zs and 39 per cent of millennials say they have rejected a potential employer based on their personal ethics or beliefs. Gen Zs and millennials are already embracing tools like ChatGPT and other generative AI platforms in their everyday work. M. Cunningham/ – Pip Dexter, Deloitte Australia's Chief People and Purpose Officer, said the days of sticking around for a steady pay packet are over. 'The centrality of purpose to job satisfaction is a driving force behind the career aspirations of these two generations,' she said. 'For them, career satisfaction hinges not just on salary, but on a job's ability to offer growth opportunities while aligning with their values. In this we see a greater expectation on employers to offer growth opportunities and meaningful work.' The AI edge – and anxiety Unsurprisingly, tech is front and centre in this generational shift. Gen Zs and millennials are already embracing tools like ChatGPT and other generative AI platforms in their everyday work. And for many, it's paying off – they say AI is helping them save time and improve the quality of their work. But there's a catch: most haven't received any formal training in how to use these tools effectively revealing a disconnect between enthusiasm and confidence. Ms Dexter warned that employers who don't step up risk losing top talent. 'While AI offers immense potential for career advancement and efficiency, some feel insecure about its long-term impact on their job security. 'Employers who meet the demand for practical training to boost employees' AI literacy will benefit through higher retention rates and a more productive and confident workforce,' One Millennial data analyst who spoke to on the condition of anonymity said he was 'really f**king worried about AI'. 'Both myself and my wife have skilled jobs. However, these jobs are done almost fully behind a computer and are somewhat repetitive. 'I'm convinced that both our jobs and many more are on the chopping block. Even if our jobs survive for a bit longer, I can foresee s**t pay, crap job security and toxic conditions.' One Millennial data analyst who spoke to on the condition of anonymity said he was 'really f**king worried about AI'. REUTERS The worker said he had seen first-hand how good AIs are getting with skills central to his job like data entry, analysis and report writing. 'I've seen where things are heading with AI agents and their abilities to perform nearly any task that's done behind a computer,' he said. 'It is progressing fast and it is very grim for us white collar employees.' It's previously been warned artificial intelligence could create up to 200,000 jobs in Australia by the end of the decade. But that comes with a downside. Leading experts have revealed many jobs are likely to become obsolete thanks to the rapid rollout of increasingly sophisticated artificial intelligence technology. Major fast food chain in the United States have replaced drive-through staff with AI voice recognition, with machines now taking orders in place of humans. Experts in Australia said that type of technology could be implemented here within the year – and warned major disruptions in the food service sector would be just the start of things to come across many industries. Leading experts have revealed the jobs most likely to become obsolete thanks to the rapid rollout of increasingly sophisticated artificial intelligence technology. Last week, reported that a major fast food chain in the United States had replaced its drive-through staff with AI voice recognition, with machines now taking orders in place of humans. Experts in Australia said that type of technology could be implemented here within the year – and warned major disruptions in the food service sector would be just the start of things to come across many industries. Research by workplace technology firm Pearson and AI solutions provider ServiceNow warned any jobs that include a lot of repetitive and technical duties will be significantly impacted. It too forecasted the total number of job losses to be in the vicinity of 1.3 million over the next several years. Cost of living changing the game While values and tech matter, nothing is hitting harder than the rising cost of living. More than half of young Aussies (55 per cent Gen Zs and 51 per cent millennials) surveyed said financial stress is their number one concern. Some 64 per cent of Gen Zs and 59 per cent millennials are living pay cheque to pay cheque, and those who feel financially insecure are also more likely to report being unhappy in life and work. Traditional higher education is also taking a hit. Gen Zs are increasingly turning away from university degrees, citing high tuition costs and time constraints. Millennials, juggling family responsibilities, are doing the same. Instead, both generations are looking for hands-on learning, mentorship and real-world experience – and they want employers to make that part of the deal. 'Financial and time pressures are dissuading some Gen Z and millennial Australians from pursuing traditional higher education pathways. Many are now turning to their workplaces for training and career growth. But too often, that support just isn't there,' Ms Dexter said.
The Australian
05-05-2025
- Business
- The Australian
Why companies need a formal CFO succession plan
All CFOs want to set their companies up for continued success after their departure. A critical, but often overlooked, part of this is ensuring there's a plan to hand over the role to the right candidate. Good succession management for CFO roles is a strategic enabler for any business: It preserves leadership continuity, minimises the risk of disruption, and helps allay shareholder concerns about changes in management and the finance function. A well-executed succession also secures the legacy of the outgoing CFO. The numbers would say this issue is particularly important. According to the Russell Reynolds Global CFO Turnover Index, approximately 50 per cent of ASX200 CFO appointments in recent years have been internal appointments. While this percentage varies year to year and across different market conditions, it is imperative that CFOs are continually developing their teams in a meaningful way and thoughtfully planning for succession. However, many businesses are not fully prepared. According to Deloitte's 2Q 2024 North American CFO Signals survey, about one quarter of 200 CFOs say that their companies do not have a formal CFO succession plan. Interestingly, almost one-third of that cohort are large companies with annual revenue of US$10 billion or more. Why is this? One reason could be that traditional approaches to succession planning can be incredibly slow-moving, with a bias towards internal candidates and away from high performers who work outside of finance or outside of the business altogether. Stephen Gustafson is CFO Program Leader at Deloitte Australia Stephen Tarling is CFO Program Leader at Deloitte Australia There may also be uncertainties over what will be required of the hypothetical successor, given the remits of many CFOs are rapidly expanding to include responsibilities like sustainability reporting, tech implementation, and talent management. There's also the fact that two-thirds of respondents to our CFO Signals survey say the primary responsibility for creating and maintaining the CFO succession plan rests with the CEO, HR, or the company's board of directors, suggesting it may get lost amid other priorities. So, what can CFOs do to help support the development and continual management of a living, breathing succession plan that is always fit for purpose? The first play is to set or update the succession criteria. Don't just think about the skills a candidate needs to do the job of CFO today, think about the skills they'll need three years down the track. This will require contemplation of both the changing business environment and the needs of the organisation at a particular point in time. Next, to execute on the succession strategy, a future-ready succession pipeline of three or so possible successors should be intentionally cultivated. Skill gaps at the individual and cohort level should be identified, with CFOs coaching and giving feedback to each internal candidate to enhance job readiness. This may mean making some bold moves, like setting up job rotation systems so potential successors can be put in the position to gain the necessary experiences to be considered CFO-ready. They should also be assigned to high-profile projects, where practicable, to build leadership skills. Mentorship is also important, particularly in relation to certain topics or responsibilities that can be more difficult to gain meaningful experience in before taking on the CFO role – such as investor relations or debt refinancing. It is also a good idea to expose potential candidates to running other parts of the business, with finance leaders increasingly being asked to act as enterprise leaders in different roles across many organisations. Beyond the broad leadership and technical skills required to do the job, CFOs should also show the ropes to successor candidates. That is, acquainting them with the detail needed to perform the CFO role while also exposing them to new experiences like interacting with the rest of the C-suite and the board. Once a new CFO has been chosen, the old CFO should use the last 100 days or so to wrap up and leave a clean slate. This may mean making some tough choices on people and budgets, but it's important not to hand a successor a bad set of books, least of all for the legacy of the departing CFO. Additionally, CFOs should not enter any earth-shaking M&A deals whose consequences they don't have to live with. Part of this is preparing for the transition openly and honestly, communicating clearly to staff who will be next in charge in finance, and making clear to the successful candidate that they have the licence to make the role their own. After a six-to-nine-month safety net period, former CFOs should step back, only offering solicited advice from afar. One succession planning technique often contemplated — the creation of a deputy CFO role — can pose an interesting dilemma. In some instances, this is actively used as a tool for broadening the exposure of the leading internal candidate to the full breadth of enterprise challenges and stakeholders they are likely to face in the future. In other instances, some choose to avoid creating the role as it is viewed as too public a declaration of the heir apparent that could cause challenges, rifts or confusion. For an outgoing CFO, forward planning requires a genuine concern about the colleagues — and company — being left behind and this is what should ultimately sit at the core of any succession plan. Confidently identifying a successor can be challenging when the nature of the job continues to shift but getting it right can create a legacy that will continue long after a CFO has stepped away. Stephen Gustafson and Stephen Tarling are CFO Program Leaders at Deloitte Australia. - Disclaimer This publication contains general information only and Deloitte is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte shall not be responsible for any loss sustained by any person who relies on this publication. About Deloitte Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee ('DTTL'), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as 'Deloitte Global') does not provide services to clients. In the United States, Deloitte refers to one or more of the US member firms of DTTL, their related entities that operate using the 'Deloitte' name in the United States and their respective affiliates. Certain services may not be available to attest clients under the rules and regulations of public accounting. Please see to learn more about our global network of member firms. Copyright © 2025 Deloitte Development LLC. All rights reserved. -
The Australian
05-05-2025
- Business
- The Australian
Why 2025 may be a ‘gap year' in gen AI, tech, media, and telecom
Deloitte predicts this year will be marked by seven important gaps that need to be bridged to realise today's potential for generative AI and the technology, media, and telecommunications (TMT) sector. The TMT sector is on the verge of a significant leap forward, largely powered by rapid AI adoption. But to get there, the industry will need to find the right balance between emerging opportunities and challenges, according to the Australian edition of TMT Predictions 2025. Specifically, to help businesses and industries thrive, gaps in seven key areas will need to be closed: The generative AI data centre electricity and sustainability gap. Generative AI data centres require unprecedented amounts of power, preferably low carbon, which is creating a gap between their needs and the capacities of electrical grids, and companies' sustainability targets. Data centres in Australia are predicted to consume more than 8 per cent of national electricity by 2030, up from 5 per cent in 2024. This is forcing operators to consider more sustainable, innovative and reliable energy solutions. In 2025, 90 per cent of data centres currently in development will seek to attain NABER's 5-star environmental performance rating while reducing their Scope 2 emissions by up to 10 per cent through the use of liquid cooling solutions. The generative AI gender gap. The gender gap in AI adoption persists with lower trust, education and employment participation driving the shortfall. Half of all women in the Australian workplace use and trust generative AI compared to almost three quarters (70 per cent) of men. In 2025, Australian women will account for 40 per cent of AI-related educational enrolments and 20 per cent of AI employment participation, driven by educational institutions and businesses continuing to promote initiatives specifically designed to increase female participation. Peter Corbett is Deloitte Australia Lead Partner of Telecommunications, Media and Technology The generative AI deepfake trust gap. The proliferation of deepfake generative AI content is making it harder for consumers to trust their own eyes and ears. That gap needs to be bridged by the generative AI ecosystem via measures such as comprehensively and immutably labelling generative AI content as well as reliably and accurately detecting fake images in real time. Deepfake attacks are expected to double in 2025, impacting over 40 per cent of Australian businesses, with increased use of social engineering tactics to bypass human controls. The number of consumers targeted by deepfake scams is expected to rise from around a third (36 per cent) in 2024 to half of all consumers in 2025. Women are being disproportionately impacted by deepfake harassment with nine of every 10 incidents targeting females. The marginal cost of creating convincing deepfakes is falling; the cost of detection needs to decline at an equivalent pace to help close the gap. The device gap. When it comes to on-device generative AI, it's estimated more than half of Australian smartphones will be AI-enabled by the end of 2025. This is driven by the dominance of premium brands like Apple, with its market share of 55 per cent locally compared to 25 per cent globally. The growing adoption of AI-enabled smartphones will push out device upgrade cycles. The average premium smartphone will be replaced every four years, an increase of six months from 2023. The streaming video gap. Many media and entertainment companies assumed consumers would 'buy and hold' multiple subscriptions but bundling will need to help fill the growth gap as customers look to cut costs. Seventy-five per cent of Australians say they are concerned over rising SVOD costs. Demand for SVOD services will remain stable but bundling and ad-tiers will play an important role with three-quarters of Australians concerned about rising costs. Fifteen per cent of non-bundling consumers will bundle their subscriptions in response to cost pressures and subscription fatigue. Growth in ad-supported streaming is expected rise from 11 per cent in 2024 to 18 per cent in 2025. When it comes to content creation, generative AI will help drive efficiencies and unlock value for studios, but IP concerns will limit content use cases. and dropping others. The autonomous generative AI agent gap. Autonomous generative AI agents are impacting the TMT sector but Australian businesses will take a cautious 'wait-and-see' approach to AI agent deployment, reflecting the country's broader trend of slow Gen AI adoption. Uptake is expected to enhance efficiency, particularly in the manufacturing, retail, professional service, and health care industries. But despite the hype for AI agents, investment in local start-ups is expected to remain subdued, with total funding estimated to remain below $50 million until 2027. The studio generative AI usage gap. Many expect large TV and film studios to be using generative AI for content production, and some are, but there is a gap between those expectations and reality. Many are cautious about challenges with intellectual property inherent to generative content, but they are keen to gain enterprise capabilities that can reduce time, lower costs, and expand their reach. Less than 5 per cent of studio production budgets will be allocated to AI tools due to tightening regulations on AI in content creation, such as intellectual property and screen practitioners' rights. We are at a pivotal moment in the history of human invention. Future generations will almost certainly look back on the choices we make today. By navigating the path forward with trust, inclusivity, and sustainability at the forefront, industry advancements can benefit not only the current generation but those that follow. Further insights into these gaps can be found in the Australian TMT Predictions 2025 report. The full Global TMT Predictions 2025 report is also available. Peter Corbett is Deloitte Australia Lead Partner of Telecommunications, Media and Technology. - Disclaimer This publication contains general information only and Deloitte is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte shall not be responsible for any loss sustained by any person who relies on this publication. About Deloitte Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee ('DTTL'), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as 'Deloitte Global') does not provide services to clients. In the United States, Deloitte refers to one or more of the US member firms of DTTL, their related entities that operate using the 'Deloitte' name in the United States and their respective affiliates. Certain services may not be available to attest clients under the rules and regulations of public accounting. Please see to learn more about our global network of member firms. Copyright © 2025 Deloitte Development LLC. All rights reserved. -
The Australian
30-04-2025
- Business
- The Australian
Tariff turmoil may not be as bad for M&A as it seems
It is often said that the one thing markets hate the most is uncertainty. Broadly, that is true: global equity markets' negative reactions to the US's 'Liberation Day' tariff regime are attributable not just to their perceived economic cost, but also to uncertainties regarding the policy's implementation and duration. It follows that M&A activity in Australia and globally will be impacted as deal-makers wait to see what happens. But CFOs shouldn't assume that deal activity will fall off completely. Prior to the Liberation Day announcement, the M&A market was regaining global momentum after a post-pandemic slump. Despite the significant disruption the tariffs will cause, a number of these factors remain in play. Insolvencies and distressed sales may remain high Although the permanency and exact scope of the tariff regime is uncertain, it will necessarily disrupt global trade and cause distress to businesses across the world. This comes on top of many years of mounting insolvency and bankruptcy figures both in the US and Australia. In both jurisdictions, company insolvencies have been caused by higher interest rates and low consumer sentiment in the post-Covid inflationary period, which has only just retreated. In Australia, these market dynamics have also seen increased use of the small business restructuring regime and the use of distressed debt specialists and safe harbour provisions for larger entities, which are alternatives to traditional insolvency processes. Sector-wise we have seen signs of stress in aspects of the health industry – such as privately run hospitals and aged care facilities, alongside mining, property and construction, retail and agriculture. These sectors are all vulnerable to a general global economic slowdown which the tariffs are predicted to cause. Australian miners will be particularly impacted by a global commodities rout if the US proceeds with placing tariffs in excess of 100 per cent on Chinese exports. Ian Turner is Strategy, Risk & Transactions Managing Partner at Deloitte Australia From an M&A perspective, an increase in distressed businesses could represent a value play for astute buyers with a long-term view and a cash reserve on the balance sheet. Meanwhile, the current uncertainty around US trade policy may increase the impetus for industry consolidation in many areas, with one-time competitors joining forces to create larger, more resilient businesses that can more readily ride out the geopolitical storm. New pools of credit emerging Private credit markets expanded rapidly across the world following tighter capital standards and lending rules put in place in the wake of the Global Financial Crisis and are worth around $US2 trillion ($3.14 trillion) today. In Australia, private credit, although still a small percentage of the credit system, has grown at a faster rate than total business debt for a number of years. While private credit lenders are no doubt pausing to assess the situation, they may eventually find Australia an even more attractive investment destination if the US ultimately proceeds with imposing tariffs above the 10 per cent baseline on other countries. Meanwhile, the weakening of our dollar following falling commodity prices will make the price of acquisitions here relatively more affordable for foreign private credit players. Outside of private credit, debt is likely to become cheaper in Australia and globally. Markets now expect central banks everywhere to bring forward interest rate cuts, and some commentators have even speculated over a return to quantitative easing, which would add significant liquidity to global markets. IPO market — keep your powder dry a moment longer Last year saw Australia's IPO activity return to form after a few slow years post-pandemic. IPO activity on the Australian Securities Exchange in 2024 saw $4.1bn across 67 listings, a nearly three-fold increase from 2023. Prior to the recent tariff curveball, there was significant positive sentiment around the outlook for IPO activity in 2025, with public market investors willing to deploy capital for quality assets. It is likely that uncertainty over the global economy will cause this nascent momentum to stall — but that doesn't mean best-laid plans should go to waste. Management teams considering an IPO should, therefore, do all they can to get ready for their next best opportunity, when uncertainty recedes below their risk threshold. Key to this is establishing strong and accurate internal forecasting and carefully evaluating which key performance indicators (KPIs) and non-IFRS metrics are most relevant, to develop a clear and concise equity story for the market. Regardless of the global economic environment, growing regulatory and economic scrutiny, along with increasingly shortened timelines for going public, means it is more crucial than ever to prioritise early execution of these readiness activities. Preparing staff and systems to meet public company standards well ahead of the IPO process reduces execution risks and strengthens stakeholder trust. Governance also continues to be a vital aspect. The C-suite and board will want to concentrate on strategy and oversight as a newly public entity, rather than dealing with issues related to noncompliance in governance, controls, and risk management that were not properly addressed before the IPO. For companies aligned with ESG trends, there is a significant opportunity to integrate this into their equity story, boosting their appeal to investors and facilitating a successful public listing. And as always, CFOs should keep their eyes on cost discipline and improvement on the path to an IPO. CFOs, leaders, and those in the M&A space may be disheartened that global events appear to have taken the wind out of the deals market just as it emerged from a quiet period – but they shouldn't despair. Times of economic disruption may bring opportunity for those who can cut through the noise and see where the value lies. Ian Turner is Strategy, Risk & Transactions Managing Partner at Deloitte Australia. - Disclaimer This publication contains general information only and Deloitte is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte shall not be responsible for any loss sustained by any person who relies on this publication. About Deloitte Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee ('DTTL'), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as 'Deloitte Global') does not provide services to clients. In the United States, Deloitte refers to one or more of the US member firms of DTTL, their related entities that operate using the 'Deloitte' name in the United States and their respective affiliates. Certain services may not be available to attest clients under the rules and regulations of public accounting. Please see to learn more about our global network of member firms. Copyright © 2025 Deloitte Development LLC. All rights reserved. -
The Australian
28-04-2025
- Business
- The Australian
Navigating financial sustainability: three key insights for healthcare CFOs
Healthcare CFOs are grappling with financial sustainability, with rising costs putting vulnerable Australians at risk of losing access to affordable, high-quality care. Deloitte's latest annual healthcare CFO survey reveals the impact of Australia's ageing population, the increasing prevalence of chronic diseases, inequitable access to services, workforce shortages and outdated technology infrastructure, among other issues facing providers. Although the sector's finance leaders expect a modest increase in revenue, they also expect a decline in operating profit over the financial year. Labour costs are a major factor, driven in part by workforce shortages and rising wages, along with inflationary impacts on the cost of drugs, equipment and other supplies. Surveyed CFOs are looking to balance growth with sustainable resource management, with a focus on improving operational efficiency and maximising revenue from existing models. Artificial intelligence (AI) is poised to play a critical role, though most providers are still underinvesting in the technology. These challenges have profound implications for patients. As providers pass on costs, the financial burden disproportionately affects vulnerable Australians and worsens health inequities. Indrani Pal is Partner in Audit & Assurance at Deloitte Australia Peter Reynolds is Partner in Audit & Assurance at Deloitte Australia. Patients from lower socioeconomic backgrounds may delay or forgo essential care when faced with higher out-of-pocket expenses, leading to poorer health outcomes and higher healthcare costs in the long term. These risks highlight the need for providers to adopt strategies that balance financial sustainability with equitable access to care. Here are three considerations healthcare CFOs should take on board. The first is to manage the rising cost of healthcare. Providers are under immense pressure to remain financially sustainable amid persistent inflation and operational challenges. Around two in three public healthcare CFOs (65 per cent) expect operating margins to fall due to the rising cost of medication, equipment and other supplies — a sentiment shared by 40 per cent of CFOs in the private sector. In response, they are going back to the basics with a focus on containing costs, improving workforce productivity and optimising capacity to manage these financial pressures. Providers are adapting their strategies for optimising revenue, with more than half of surveyed CFOs (59 per cent) managing cash flow on a monthly basis to maintain liquidity and respond quickly to financial challenges. A further 93 per cent are focusing on collecting cash efficiently from existing sources through efficient billing and other relevant processes. However, financial strategies should always be aligned with health equity objectives to improve access to care while ensuring financial sustainability. The second consideration is to manage talent challenges, including high workloads, rising turnover and fierce competition. CFOs are concerned about the pressure of high workloads in the fast-paced healthcare sector, worsened by talent shortages, operational inefficiency and the need to contain costs amid economic instability and inflation. This is leading to higher stress and burnout among staff, which ultimately detracts from quality of care and threatens financial sustainability. Fierce competition for skilled professionals and limited new talent are making it harder for leaders to attract qualified candidates, further hindered by outdated technology and ineffective recruitment practices. In response, finance leaders are looking to innovate workforce models and streamline tasks to redirect time to higher value activities, improve efficiency and attract potential recruits. The last consideration is to prioritise investment in AI and other digital infrastructure. In terms of capital expenditure over the next three years, the majority of surveyed CFOs (76 per cent) are prioritising data and interoperability tools, core business technologies and digital technologies like virtual health. Venture investments and mergers and acquisitions aren't seen as high priorities during this period of economic uncertainty, with operational improvements and financial stability considered more pressing than expansion or high-risk investments. While CFOs believe it's important to invest in AI, only 10 per cent believe their organisation is ready to implement AI and just 3 per cent say their organisation is AI fluent. This contrasts starkly with their global counterparts, more than 80 per cent of whom expect generative AI to have either a moderate (26 per cent) or significant (55 per cent) impact on their organisation in 2025. AI, deployed in the right ways, is critical to solving the long-term cost pressures facing healthcare providers. While reducing costs in the short term may offer immediate relief, strategic investments in technology could significantly boost efficiency and foster growth. The healthcare sector stands at a critical juncture where financial sustainability hinges on strategically managing costs, investing in technology and empowering the workforce. As CFOs navigate these challenges, they will need to balance immediate financial pressures with long-term goals to foster resilience and growth. Indrani Pal and Peter Reynolds are Partners in Audit & Assurance at Deloitte Australia. - Disclaimer This publication contains general information only and Deloitte is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte shall not be responsible for any loss sustained by any person who relies on this publication. About Deloitte Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee ('DTTL'), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as 'Deloitte Global') does not provide services to clients. In the United States, Deloitte refers to one or more of the US member firms of DTTL, their related entities that operate using the 'Deloitte' name in the United States and their respective affiliates. Certain services may not be available to attest clients under the rules and regulations of public accounting. Please see to learn more about our global network of member firms. Copyright © 2025 Deloitte Development LLC. All rights reserved. -
