Artificial intelligence (AI) and data analytics are transforming the finance industry. Companies are using these technologies to enhance financial forecasting, improve risk management, and drive strategic decision-making. However, there’s a significant challenge standing in the way: a growing shortage of AI and data talent in the finance sector. Finance leaders are feeling the pressure. The demand for professionals who possess both deep financial expertise and strong data analytics or AI skills is outpacing supply. This gap is not only slowing down digital transformation efforts but also putting businesses at a competitive disadvantage. Without the right talent, finance teams struggle to implement automation, leverage real-time data insights, and optimize financial performance. So, what’s behind this talent shortage? And more importantly, what can finance leaders do to address it? Why AI & Data Skills Are More Important Than Ever in Finance The role of AI and data analytics in finance has expanded dramatically. These technologies are no longer just supplementary tools; they are becoming essential for staying competitive in a data-driven business environment. Finance teams increasingly rely on AI and machine learning for tasks such as fraud detection, predictive forecasting, and financial modeling. AI-powered automation can streamline repetitive processes like reconciliation, reporting, and variance analysis, allowing finance professionals to focus on higher-level strategy and decision-making. The reliance on AI-driven insights is growing rapidly. A recent study by IBM found that 83% of Canadian businesses are progressing in their AI strategies , with 42% already seeing measurable returns on their AI investments. This trend suggests that AI and data analytics are no longer optional but rather fundamental to success in modern finance. Despite this clear need, many companies are struggling to find and retain professionals with the necessary expertise. The AI & Data Talent Shortage in Finance: What’s Causing It? There are several factors driving the shortage of AI and data talent in the finance sector. 1. High Demand and Intense Competition AI and data science are among the most sought-after skills across industries, and finance is competing with tech firms, healthcare, retail, and government for a limited talent pool. Large technology companies often offer higher salaries, more flexible work environments, and exciting AI-driven projects, making it difficult for finance teams to attract top talent. A Vector Institute report highlighted a 37% increase in demand for AI-related skills in Canada between 2018 and 2023. However, the supply of skilled professionals has not kept up, leading to intense competition among employers. 2. The Finance-AI Skills Gap Traditionally, finance professionals have not been trained in AI, machine learning, or advanced data analytics. While many have strong technical skills in areas such as financial modeling and Excel-based analysis, these are not enough to fully leverage AI-driven insights. At the same time, data scientists and AI specialists often lack deep financial expertise. Bridging this gap requires either hiring professionals with both skill sets—who are incredibly rare—or investing in upskilling finance teams to develop AI and analytics capabilities. 3. Retention Challenges for AI Professionals in Finance Even when finance leaders manage to hire AI and data talent, keeping them is another challenge. Many professionals in this field seek out roles in industries where AI innovation is at the core of the business, such as fintech, SaaS, and major technology firms. Finance teams that fail to offer engaging projects, career growth opportunities, and competitive compensation often find that their AI specialists leave for more attractive roles elsewhere. The Impact of the Talent Shortage on Financial Operations The shortage of AI and data professionals has serious consequences for finance teams and the businesses they support. Slower Digital Transformation – Without the right talent, companies struggle to implement AI-driven initiatives, delaying the adoption of automation and advanced analytics. Increased Workloads on Existing Teams – When skilled AI professionals are unavailable, existing finance teams must take on data-heavy tasks that could otherwise be automated, reducing efficiency and increasing burnout. Weaker Financial Forecasting and Risk Management – AI and predictive analytics are essential for accurate financial planning. A lack of expertise in these areas can lead to less accurate forecasts and higher exposure to risk. Competitive Disadvantages – Companies that lag in AI adoption may struggle to compete with industry leaders who have successfully integrated these technologies. For finance leaders, addressing this talent gap is no longer optional—it’s a business imperative. How Finance Leaders Can Overcome the AI & Data Talent Shortage To attract and retain AI and data professionals, finance leaders must rethink their talent strategies. While hiring experienced AI professionals is one solution, it’s not always feasible given the competition. A more sustainable approach involves a combination of upskilling, partnerships, and workplace innovations. 1. Upskill Existing Finance Teams Investing in AI and data analytics training for current finance professionals is one of the most effective ways to close the skills gap. Many organizations are now offering in-house training programs, AI boot camps, and certifications to help their finance teams develop these capabilities. Providing opportunities for continuous learning not only strengthens internal expertise but also improves employee retention by offering career development pathways. 2. Strengthen Partnerships with Universities and AI Institutes Finance leaders can collaborate with academic institutions and AI research centers to develop a pipeline of emerging talent. Programs like those offered by the Vector Institute provide training for AI professionals, and partnering with these institutions can help finance teams gain early access to skilled graduates. Internship programs, co-op placements, and sponsored research projects are all ways to build stronger connections with AI talent before they enter the job market. 3. Offer Competitive Compensation and Career Growth Opportunities Attracting AI and data professionals requires more than just a competitive salary. While compensation is important, other factors such as career growth opportunities, remote work flexibility, and engaging AI-driven projects play a significant role in talent retention. Companies that position themselves as leaders in AI innovation within finance will have a better chance of attracting professionals who are passionate about working on cutting-edge solutions. 4. Leverage Open-Source AI Tools and Automation For Canadian finance teams struggling to hire AI talent, open-source AI tools can provide valuable solutions. Platforms like IBM’s open source AI initiatives make it easier for companies to adopt AI without needing an extensive team of data scientists. By using these tools, finance leaders can implement AI-driven automation and analytics even with limited in-house expertise. The Future of AI in Finance: Act Now or Fall Behind AI and data analytics are not just buzzwords—they are the future of finance. Companies that successfully integrate these technologies will gain a competitive edge through better forecasting, stronger risk management, and more efficient operations. The talent shortage won’t resolve itself anytime soon. Finance leaders who act now—by investing in upskilling, building academic partnerships, and creating AI-friendly work environments—will be the ones who stay ahead. Those who wait risk falling behind as their competitors leverage AI-driven insights to outperform them. The question finance leaders must ask themselves is simple: Are we adapting fast enough to win the AI talent war? Horizon’s accounting and finance recruitment division is a trusted leader in Canada, connecting top financial talent with organizations across industries such as insurance, healthcare, manufacturing, mining, and more. Our expert team specializes in sourcing professionals who drive financial performance, compliance, and strategic growth. Discover how our tailored recruitment solutions can strengthen your finance team or connect with one of our experts today .