Why finance teams can’t afford to ignore shifting spend trends and artificial intelligence innovation

The financial risks of maintaining the status quo are growing as new trends reshape spend management. Some finance teams still rely on outdated systems, manual workflows, and disconnected data even while many companies acknowledge the need for change. The consequences of inaction go beyond inefficiencies, resulting in lost visibility, noncompliance, fraud, and missed opportunities, according to SAP Concur.

Businesses have experienced a shift in employee spending behaviour as decentralised purchasing increases, driven by hybrid work and increased employee autonomy. Employees are using multiple booking platforms, making out-of-pocket purchases, and choosing payment methods based on personal convenience, rather than policy.

This shift is reflected in data from SAP Concur, which shows a significant rise in out-of-pocket spending, highlighting how quickly this trend is gaining momentum. In addition, companies that have policies in place often lack systems to enforce them in real time. More than half (61 per cent) of finance decision-makers report that they lack visibility into near-real-time employee spend, leading to budgeting, forecasting, and cost control challenges.

Employee spending habits have changed significantly. More flexibility in how and where people work means finance teams are seeing more purchases made outside of standard systems. Finance leaders need tools that can keep up with this shift and help them manage spend effectively.

Tax and compliance obligations are becoming harder to manage at the same time, adding more pressure to already stretched finance teams. Financial transparency, audit readiness, and tax accuracy are non-negotiable priorities as regulatory scrutiny intensifies, yet many businesses fail to track eligible spend correctly. Companies are increasingly turning to artificial intelligence (AI) and automated travel and expense (T&E) management tools to overcome these challenges and achieve greater levels of visibility and transparency.

Finance teams need to keep up with changing tax rules and growing compliance requirements. Many still lack the systems to track goods and services tax accurately, which means eligible funds go unclaimed. Real-time visibility into employee spending makes it easier to prepare for audits and maintain financial transparency.

AI gives finance leaders a way to take control. These tools can capture receipts automatically, identify policy violations, and track reclaim opportunities as they happen. AI also lets teams forecast more effectively, manage risk, and improve cost control by reducing manual work and providing accurate data.

Data also shows that more than 70 per cent of executives believe AI and machine learning will improve efficiency and productivity. Teams that continue using manual processes or outdated systems risk missing opportunities to reduce errors, detect fraud, and streamline reporting.  

Finance teams that still manage travel, expense, and invoice workflows through manual input and disjointed systems risk wasting time and increasing errors. More than AU$5 million is lost annually to misclassified expenses and receipt violations, while manual expense reimbursements account for 13 per cent of all fraud cases.

These inefficiencies extend to tax reclaims, compliance audits, and vendor payments. The burden on finance professionals increases as they spend time on administrative tasks instead of strategic activities. Businesses that fail to modernise are at a disadvantage in employee satisfaction and talent retention, as systems that slow down processes frustrate employees and undermine productivity.

The growing demand for real-time spend visibility has also had a significant impact on finance teams, as delayed reporting and fragmented data prevent finance leaders from making informed, proactive decisions. Finance teams need complete, up-to-date data to operate strategically. Without it, decisions are reactive, and opportunities are lost. However, nearly two-thirds of chief financial officers recognise the value of AI, even if they lack strong AI knowledge, while 67 per cent believe AI will improve forecasting, 64 per cent expect better risk management, and 61 per cent foresee improved efficiency.

T&E is often one of the largest discretionary spend areas, yet it's also fragmented. AI-powered tools can reshape this space. Intelligent tools automate receipt capture, itemisation, fraud detection, and tax reclaim, removing the friction and inconsistency of manual T&E management.

These tools improve internal workflows and the employee experience. AI can create travel cost estimates in seconds, auto-populate expense reports, flag suspicious transactions, and suggest vendor decisions based on historical data. This means finance teams spend less time verifying transactions and more time analysing trends and driving value. The technology is available, the return on investment is proven, and the risks of delay are increasing. The cost of inaction isn't theoretical, it's measurable in lost dollars, missed insights, compliance gaps, and diminished agility. Finance leaders who act now can control spend, empower their teams, and position their companies for the future.