Finance leaders in life sciences are balancing a familiar mix of priorities – tight closes, audit readiness, and evolving disclosure expectations – while also navigating modernizing data, technology and governance in the background. Last week, our team attended the Informa Life Sciences Accounting & Reporting Congress in Philadelphia, and the most consistent theme across sessions was the growing role of finance in shaping how technology is adopted, governed, and integrated into reporting and risk management processes.
AI Adoption: Governance Comes First
Artificial intelligence was a recurring topic across sessions, reflecting its expanding role in finance and accounting functions. The prevailing message was not about experimentation for its own sake, but about disciplined adoption. Speakers consistently emphasized using AI to enhance efficiency, insight, and monitoring capabilities, while maintaining strong professional judgment and oversight.
Finance and controllership teams are increasingly involved in evaluating the control implications of AI tools, reinforcing the need for clear accountability, review processes, and ethical considerations. The prevailing view was that organizations should be actively exploring AI‑enabled efficiencies while maintaining strong oversight and professional skepticism.
Data, Technology, and the CFO Agenda
A CFO panel highlighted how expectations of finance leadership continue to expand as organizations invest in data and automation. Panelists noted that it is no longer sufficient to fund technology initiatives; finance is increasingly expected to govern them. A key takeaway was the importance of separating traditional financial ROI from broader business benefits, where value is often realized through faster cycle times, improved forecasting, reduced control gaps, and lower restatement risk.
Speakers emphasized the need to standardize how progress and benefits are measured and reported, and to automate measurement where feasible so value is not lost over time. Another recurring theme was the continued convergence of accounting and FP&A. As data plays a larger role in both historical reporting and forward‑looking analysis, closer coordination between these functions is becoming essential. CFOs described their role as balancing strategic prioritization with stewardship, particularly as technology adoption introduces new control and governance considerations.
SEC and FASB Focus Areas
Speakers provided insight into current SEC comment letter trends and regulatory priorities. Key areas of focus in recent SEC comment letters included disaggregation of R&D expenses under the requirements of ASU 2024-03 (“DISE”), transparency around patent expiration exposure for significant products, and continued scrutiny of ASC 606 disclosures. In particular, the SEC is emphasizing clearer disclosure around collaboration arrangements, including material terms, revenue recognition methods, and amounts recognized in the period.
Additional attention has been directed toward pre‑launch inventory and the timing of capitalizing pre‑approval costs. Speakers also cautioned that assertions related to the impact of AI on an entity’s operations, particularly development timelines, should be supportable and appropriately disclosed. Segment reporting under ASC 280 remains an active area of review, with continued SEC focus on non‑GAAP measures and alignment with GAAP.
FASB discussions focused on recent changes around crypto, segment reporting, and disaggregation of R&D expenses, as well as potential target areas for its technical agenda, such as alternative funding arrangements, capitalization of R&D-related intangibles, and accounting for asset acquisitions, where diversity in practice and significant judgment remains.
Internal Audit and Risk Readiness
Internal audit sessions highlighted expanded use of analytics and continuous monitoring, particularly in SOX environments. Speakers discussed leveraging full‑population data to identify anomalies and, in certain ERP environments, reducing reliance on traditional sample‑based testing. As controls become more data‑driven, audit skill sets and coordination with controllership and IT are evolving accordingly.
Discussions also emphasized resiliency over perfect prevention, with increased focus on scenario planning, operational technology risk, and crisis readiness.
Closing Observations
The conference reinforced that AI, data, regulatory compliance, and risk management are increasingly interconnected, with finance serving as the integrator. Organizations that take a disciplined approach – grounded in clear policies, strong governance, and cross‑functional coordination – will be better positioned to manage complexity and meet rising expectations while staying anchored to the broader purpose of the work. This year’s Patient Advocate Address underscored that everyone in attendance, and every role in the process, matters in helping therapies reach patents quickly and responsibly.
