Change is upon us. Business leaders are being asked what their AI plans will be next year and how to address it as soon as possible. Chief financial officers, accounting, FP&A, and internal audit teams are in the midst of a digital transformation that promises unprecedented disruption.
So how can you enable your team to drive change, reduce risk, and ensure compliance across complex organizational structures while keeping your board and other stakeholders happy?
Here are five key strategic considerations for CFOs to maximize their AI readiness.
Cut through the noise
CFOs need a good understanding of which AI technologies are mature enough and commercialized for adoption in the financial sector today. “AI” is a broad term that typically refers to technologies with very specific capabilities. Large language models such as ChatGPT are built for language applications, but are not suitable for numerical (i.e. financial) data.
Some software vendors tout AI in their sales and marketing pitches. It is essential to develop a sufficient understanding to distinguish between promise and actual ability.
Based on a solid understanding of the technological playing field, we need to identify clear use cases where AI can deliver tangible benefits. We focus on AI that can impact finance and accounting productivity and scale with large financial ledgers and operational datasets.
One way to think about AI use cases is in terms of:
Align with the organization's strategic goals
Before embarking on an AI implementation, CFOs must align AI use cases with the organization's strategic goals. When creating the first draft of your strategic “AI roadmap,” it's helpful to prioritize tools and use cases based on potential speed of implementation, estimated cost, and impact.
- 92% of AI deployments are completed within 12 months
- Organizations are realizing a return on their AI investments within 14 months
- For every $1 invested in AI, companies realize an average return of 3.5x.
AI Opportunities, IDC November 2023
Leaders must engage with key stakeholders across departments to ensure AI efforts are aligned with broader organizational goals and foster collaboration. Additionally, conducting preliminary tests and evaluating initial results will provide valuable insights to refine her AI roadmap before full-scale implementation.
Establish an AI advisory board to determine priorities and required tools
Committees can conduct appropriate cost-benefit analyzes to assess the financial impact of AI implementation over time. By evaluating both the AI priorities and the tool's initial cost and expected ROI, the CFO can make informed decisions about the financial feasibility and sustainability of AI investments. can.
This ensures that your new investment strategy aligns with your business goals. By leveraging these analytics, CFOs can increase transparency and accountability in the decision-making process and foster trust among sponsors.
Ensure data quality, privacy and governance
The success of AI in finance will largely depend on data quality, accuracy, and governance. CFOs must prioritize data quality efforts to ensure AI algorithms are trustworthy and have access to clean, reliable data for analysis and decision-making. While this is universally true, keep in mind that finance already “owns” one of the cleanest datasets available. It's financial (ledger) data that can be leveraged for high-ROI AI initiatives.
Privacy is also an important consideration. How do certain AI tools store and use the data they ingest? The current situation remains dynamic. Vendors are adapting. For example, OpenAI, the maker of ChatGPT, recently announced changes to no longer retain prompt (or customer) data. Similarly, our privacy team continues to learn and adapt to new technologies and products.
Fostering a culture of innovation and collaboration to accelerate AI adoption
Fostering cross-functional collaboration between finance, IT, and other business units is essential. This helps quickly identify opportunities for AI innovation and experimentation.
Starting within the finance function, CFOs must encourage open communication, knowledge sharing, and continuous learning to embrace AI technology and explore new possibilities. By creating an environment that values innovation and encourages experimentation, CFOs can unlock the full potential of AI in finance, lead by example, and drive sustainable growth and competitive advantage. Masu.
How do you start your AI journey?
AI offers tremendous potential to transform finance functions and increase value for organizations. By considering these five key steps, CFOs can maximize the benefits of AI in finance while ensuring they get value for money. By cutting through the noise, aligning on strategic goals, forming advisory boards, ensuring data governance, and fostering a culture of innovation and collaboration, CFOs can harness the power of AI to drive efficiency and improve efficiency. Enhance your decision-making and unlock new opportunities in finance and finance. accounting. Re-emerging as the “AI-powered Her CFO” and positioning herself as a strategic navigator of data-driven transformation for organizations.
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