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A Datarails survey of 270 US finance leaders has found that 76% face high or very high pressure to fully implement artificial intelligence, despite significant concerns over accuracy, auditability, and costs. Nearly all CFOs spend at least 10% of their workday reviewing or correcting AI-generated outputs, while 32% devote between 26% and 50% of their time to oversight. The research also found that 84% of CFOs control their organizations’ AI budgets, with 32% reporting AI spending overruns of at least 10% during the previous year. Nevertheless, 53% plan to expand AI licenses over the next 12 months, while 60% are redeploying employees to higher-value activities rather than cutting jobs. Trust in autonomous AI remains limited, with just 23% comfortable using it for revenue forecasting without human review, falling to 4% for month-end closing tasks, highlighting the continuing importance of human oversight in financial operations.

 

CFO

The 2026 benchmark for AI in accounting is here

AI adoption is accelerating across accounting, but not every team is seeing the same results.

Independent research commissioned by FloQast among accounting and finance professionals in the US and UK reveals a profession in transition. Six in ten accountants still spend 40% or more of their time on manual work, while some organisations are already seeing meaningful benefits from AI.

So what are the most AI-mature accounting organisations doing differently?

The State of Accounting AI 2026 report benchmarks where the market stands today, explores what separates the organisations pulling ahead, and highlights the leadership practices supporting more mature AI adoption.

For accounting and finance leaders, it offers a useful benchmark for assessing where their organisation sits today and what could help move it forward.

Download the report

 

Netflix has announced the appointment of former Disney and Fox executive Peter Rice as chief content officer, replacing Bela Bajaria as the streaming giant seeks to revive viewership growth and reverse a 40% decline in its share price over the past year. Mr. Rice will assume the role on October 26th, overseeing the company’s global film and television slate, as well as live events. The leadership shake-up follows Netflix’s announcement of plans to cut 6% of its workforce, equivalent to approximately 1,000 jobs, in its largest round of layoffs in at least four years. Mr. Rice, who previously oversaw Disney’s television operations, including ABC, FX, and Hulu, brings extensive industry experience and relationships with Hollywood talent as Netflix prepares to report its latest earnings.

 

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U.S. retail sales have risen by a better-than-expected 0.8% in September, according to the Commerce Department, significantly ahead of economists’ forecasts of 0.3%, following a revised 1.3% increase in August. However, growth has been partly driven by rising fuel costs, with gas station sales increasing 6.4%, while sales excluding gas stations rose by just 0.2%. Elsewhere, department store sales increased 1.6%, furniture and home furnishings sales rose 1.3%, and restaurant spending climbed 1.1%, while online retail sales grew by a more modest 0.3%. However, analysts have cautioned that the headline retail sales increase partly reflects higher prices rather than stronger underlying demand, warning that continued pressure on household incomes could weigh on consumer spending and retailers’ profit margins ahead of the crucial holiday shopping season.

 

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US initial unemployment claims have risen slightly by 1,000 to 199,000 in the seven days to October 10th, according to the Labor Department, remaining at historically low levels and signaling continued job security for most American workers. The four-week moving average increased by 250 to 198,500 while continuing claims, reported with a one-week lag, fell by 4,000 to 1.71m. Persistent inflation, rising energy costs, and elevated borrowing costs have raised concerns about potential job cuts; nevertheless, economists surmise that slower population growth and reduced immigration could limit the number of new jobs needed to maintain relatively low unemployment.

 

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U.S. wholesale inflation has accelerated sharply in September, with the Producer Price Index (PPI) rising 1.3% month over month and 6.3% annually, according to the Bureau of Labor Statistics, significantly exceeding economists’ forecasts of 0.5% and 5.3%, respectively. The monthly increase was the largest since March 2022, while annual wholesale inflation reached its highest level since December 2022. Rising energy costs, driven partly by the conflict with Iran, accounted for 80% of a record 2.9% monthly increase in goods prices. However, underlying inflationary pressures have also intensified, with core PPI, excluding food and energy, increasing 0.7% monthly and 5% annually, its highest annual rate since January 2023.

 

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U.S. tax and accounting professionals are urging the House of Representatives to pass the bipartisan Taxpayer Assistance and Service (TAS) Act before the end of 2026, following its unanimous Senate approval in September. The legislation contains 65 provisions designed to modernize IRS services, strengthen taxpayer protections, and introduce minimum professional standards for paid tax preparers, including continuing education and background checks. Key measures include improved online taxpayer accounts, automated callbacks, greater transparency around IRS telephone wait times, and faster processing of paper returns. The bill also aims to combat fraudulent “ghost preparers” and strengthen taxpayers’ rights in disputes with the IRS. Industry organizations, including AICPA and NAEA, have endorsed the reforms, highlighting their potential to improve accountability and service efficiency. However, uncertainty remains over House approval, while the absence of additional IRS funding could complicate implementation amid existing budget and staffing constraints.

 

Accounting Today

Ralph Lauren has replaced sustainability targets with artificial intelligence (AI) performance metrics in its executive short-term incentive plan, reflecting a growing emphasis on AI adoption across the retail sector. The fashion group has introduced AI literacy and implementation goals alongside existing measures such as sales growth and operational costs, having previously linked executive bonuses to sustainability objectives for four years. Strong performance against its AI targets contributed to maximum executive payouts for the financial year ending March 2026. The move comes as companies increasingly seek measurable returns from AI investment, with 12% of S&P 500 companies disclosing AI-related goals in executive incentive plans this year, up from 5% in 2024. However, adoption remains relatively limited in the consumer sector, with compensation advisers suggesting that more retailers could follow as AI becomes increasingly important to operational efficiency, profitability and long-term competitiveness.

 

Reuters

The Empire State Manufacturing Index has surged to 25.50 in October, significantly exceeding economists’ forecasts of 12.10 and rising sharply from September’s reading of 7.60, signaling a substantial improvement in manufacturing conditions across New York state. The index, compiled from a survey of approximately 200 manufacturers by the Federal Reserve Bank of New York, measures business conditions through indicators including new orders, shipments, employment, and inventories, with readings above zero indicating expansion.

 

Investing

KFC has announced plans to replace PepsiCo with Coca-Cola as its beverage supplier across U.S. restaurants, ending a partnership dating back to PepsiCo’s acquisition of the fried chicken chain in 1986. The Yum Brands-owned business expects to complete the transition by the end of the first quarter of 2027, marking a significant shift as it seeks to regain market share from competitors including Chick-fil-A and Popeyes. KFC U.S. President Catherine Tan-Gillespie described the agreement as a critical part of the company’s turnaround strategy, providing opportunities to introduce new beverages, respond to changing consumer preferences, and attract customers. 

 

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The IRS has introduced a digital version of Form 211, Application for Award for Original Information, and an online reporting portal to streamline the submission of whistleblower claims involving suspected tax fraud, evasion, scams, and other financial crimes. The agency has also updated its guidance to explain the electronic submission process, aiming to improve reporting efficiency and accelerate responses to suspected violations. Alongside these changes, the IRS Whistleblower Office has strengthened its partnership with the U.K.'s His Majesty's Revenue and Customs (HMRC), supporting its Strengthened Reward Scheme, which launched in November 2025 to target serious tax avoidance and evasion involving wealthy individuals and large businesses. 

 

Accounting Today

UK Chancellor of the Exchequer John Healey has emphasized the banking sector's importance to Britain's economic growth while declining to confirm whether the government will introduce higher taxes on bank profits in its October 28th budget. Speaking at the International Monetary Fund's annual meetings in Bangkok, Healey described banks as integral to the country's economic future, acknowledging their broader contribution beyond their role as major financial institutions. The government is considering fiscal decisions amid speculation that increasing the existing bank levy, which is charged in addition to corporation tax, could generate billions of pounds in additional revenue. However, British banks argue that they already face comparatively high taxation, while analysts warn that additional costs could be passed on to customers through higher charges. 

 

Reuters

Pernod Ricard has announced preparations for a potential IPO of its Indian business, subject to board approval, as strong demand in the country helps offset continued weakness in its major US and Chinese markets. The Jameson and Absolut owner reported first-quarter net sales of €2.23bn, down 0.9% organically but ahead of expectations for a 1.7% decline. Sales in India rose 19%, supported by strong demand for premium spirits and locally produced whiskies, while US and Chinese sales fell 10% and 25%, respectively, amid challenging market conditions. The group has maintained its full-year guidance for broadly stable sales, although persistent weakness in the US is expected to constrain medium-term growth towards the lower end of its 3%-6% annual target range through 2029. Pernod Ricard is also targeting €1bn in efficiency savings to support profitability and maintain brand investment, while a potential Indian listing could provide an opportunity to capitalise on one of its fastest-growing markets.

 

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An estimated 70% of Americans plan to shop on Black Friday or Cyber Monday this year, with spending across the four-day period projected to rise nearly 9% to more than $85bn, according to Bain & Company. Amid growing financial pressures, consumers are increasingly prioritizing discounts, with more than 90% planning to participate in at least one major sales event. Black Friday is expected to remain the holiday season’s biggest shopping day, while Cyber Monday is projected to rank among the top five sales days of 2026, highlighting the growing importance of promotional events for retailers.

 

Fast Company