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Adapt or fall behind: The strategic role of AI for forward-thinking CFOs Artifical Intelligence Business transformation October 17, 2024 By Monica Proothi Lauren Davis3 min read X-twitter Linkedin…
Chief financial officers (CFOs) are no longer just number crunchers; they are strategic leaders responsible for driving innovation and growth. With advancements in new technologies such as generative AI, finance leaders have remarkable tools to reshape how they operate, innovate and provide value across their organizations.
As economic volatility continues to rise, CFOs face increasing pressure to ensure operational efficiency while also spearheading digital transformation. The challenge lies in adopting new technologies to stay ahead of the competition, while managing the complexities of today’s financial landscape. The answer to this challenge might lie in harnessing the power of artificial intelligence (AI).
The role of generative AI in finance
AI has already started to transform how CFOs manage their teams, processes and overall strategy. Among all the rapid advancements in AI over the last few years is generative AI, a technology that not only analyzes data but also generates content, ideas and solutions based on that data. With generative AI, finance leaders can automate repetitive tasks, improve decision-making and drive efficiencies that were previously unimaginable.
Imagine a world where your AI assistant generates complex financial reports in minutes, predicts market trends with high accuracy or even suggests cost-cutting strategies based on real-time data. With generative AI, this is no longer a distant future; it’s happening now.
But how do CFOs effectively use these tools to maximize business outcomes? A new study from IBM’s Institute of Business Value (IBV) highlights key actions that CFOs need to take, ranging from managing risk tolerance and enhancing tech partnerships to adopting generative AI to use technology and drive their organizations forward.
4 key takeaways from the IBV CFO Study
1. Technology as a core: The role of the CFO is no longer confined to financial stewardship. CFOs increasingly play a key role in integrating technology and business strategies. Leading CFOs say CTOs are their most important relationship, with 72% identifying them as critical.
2. Execution and strategy are like yin and yang—opposites but interconnected with each other: CFOs are positioned as key agents of change, needing to balance precision and agility in response to evolving strategic factors. 36% more leading CFOs can respond quickly to strategy changes compared to their peers.
3. Data is the lifeblood of your AI: AI adoption in finance is not just about cutting costs; it’s about unlocking new growth opportunities. Better data analytics enable an organization to make smarter financial decisions. Despite its proven benefits, AI’s potential in finance is underutilized, with just 34% of finance operations using or optimizing traditional AI.
4. Take the risk with confidence: 1 of the key challenges CFOs face is balancing the risk appetite and managing risk effectively. Without proper risk management, the organization becomes most susceptible to unexpected events, financial losses, ineffective decision-making, reputational damage, resource misallocation and operational disruption. AI can help identify potential risks earlier, allowing for more proactive management and better resource allocation.
Successful CFOs know that continuous learning is essential to innovation
For CFOs looking to remain competitive in an ever-evolving business environment, understanding and applying generative AI is essential. Things to consider on your gen AI learning journey:
CFOs are uniquely positioned to drive meaningful change in their organizations. By embracing the transformative power of generative AI, finance leaders can move beyond traditional financial management and become true innovators.
Whether you’re looking to streamline operations, enhance data-driven decision-making or lead your organization through digital transformation, AI offers a powerful set of tools to help you achieve these goals.
Don’t miss this opportunity to explore the future of finance and innovation. For more insights, we invite you to download the full IBV CFO Study and listen to this on-demand webinar to learn more about the evolving role of CFOs in the age of AI.
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Adapt or fall behind: The strategic role of AI for forward-thinking CFOs Artifical Intelligence Business transformation October 17, 2024 By Monica Proothi Lauren Davis3 min read X-twitter Linkedin…
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