In the latest edition of BBJ’s Top 50 Executives in Financial Businesses Áron Kovaloczy, Managing Director at DLA Piper Business Advisory Ltd. shared his thoughts on the current trends shaping the market.
What are the challenges and opportunities offered by digitalization and AI?
I believe that one of the key challenges ahead is the increasing ability of AI to take over tasks traditionally performed by junior professionals, whether in financial advisory or legal advisory. While this undoubtedly boosts efficiency, it also raises concerns about the development of young professionals, as they may have fewer opportunities to gain the hands-on experience needed to build their skills and progress in the beginning of their careers.
"We must find the right balance between leveraging AI for efficiency and continuing to invest in the training and development of the next generation of professionals."
At the same time, AI opens up opportunities for firms to enhance productivity and focus on higher value-added activities. By automating time-consuming, routine tasks, we can allocate more time to high profile, strategic level work that requires deeper expertise and more intellectual contribution, as well as higher creativity. However, it is crucial that we find the right balance between leveraging AI for efficiency and continuing to invest in the training and development of the next generation of professionals.
What balance do you strike between attendance in the workplace and remote working?
Balancing in-office and remote working is an important consideration, especially as younger generations expect more flexibility. In my opinion one of the main aspects of this balance is trust – if there is mutual trust between employer and employee, remote work can usually be managed appropriately. However, it is essential to recognize, that the nature of the work plays a critical role. Certain tasks require physical presence due to their collaborative or brainstorming nature. Training of people and integrating them in the team also requires physical presence. On the other hand, work that requires deeper concentration – in case of well-structured, in-depth tasks, such as contract drafting or building of a complex financial model, just to give a few examples – can often be performed more efficiently from home, where employees can focus without distractions. Moreover, I always take into account the individual life circumstances and preferences of my team members as these factors often influence the necessity for remote or in-office work. There is no "one size fits for all" in this respect.
Green financing is becoming an ever more potent buzzword. How much of your time is spent dealing with it today, and how do you see this growing in the future?
Green financing is indeed becoming a more prominent aspect of our work, as we see growing expectations from financers (lenders, equity investors and all kind of investors) regarding ESG criteria. More and more investors are expecting the entities they invest in to comply with these standards and demand clear evidence to back up such compliance. The ability to demonstrate that a company meets these criteria is becoming essential when seeking financing. Businesses must be proactive in this regard, ensuring that they can provide the necessary documentation and transparency to meet these evolving standards.
This shift is not only influencing the availability of financing but also directly impacting the pricing. Looking ahead, I expect the importance of green financing to continue growing. However, the pace and scale of this growth will largely depend on the regulatory environment as well. The actions of regulators will determine how much more ESG factors and based on what standards will affect financing decisions.
Would you recommend finance as a good career choice for Gen Z or Generation Alpha members?
Even though that many members of Gen Z and Generation Alpha may have different motivation and expectations towards work that I had, I would certainly recommend financial advisory as a clever career choice for those who are seeking meaningful work with great variety from all perspectives and the opportunity for professional development. Our business offers unparalleled opportunity to develop understanding of many industries, get to know many people and experience a wide range of solutions that do have an impact in a very short time. At DLA Piper Business Advisory we can offer an inspiring environment with exposure to experienced colleagues and high-profile clients, as well as an environment where professional development is a priority. I believe that our firm is a perfect fit for those who – in addition to seeking these values – are eager to be part of exciting, high-profile projects, want to experience a wide range of challenges, and are willing to invest in their professional growth. We offer a fast-paced, varied, and international work environment with many opportunities and we understand that if the younger generation are willing to invest their time and energy, it is our responsibility to ensure that they have the opportunity to learn and grow.