The Strategic CFO: 5 Tips for Preparing for AI

The era of AI is here, and organizations that understand how to put the technology to use will gain a competitive advantage. Currently, 61% of finance leaders report they’re in the early stages of exploring generative AI. Meanwhile, only 4% said they’re maturing and scaling their AI use.

To jump this gap and prepare your finance teams to benefit from AI-powered solutions, consider the following tips:

1. Educate yourself about the AI landscape and its potential applications.

The opportunities for AI use within finance include risk management, fraud detection, financial analysis, cash flow optimization, regulatory compliance, and more. The world of solutions can be overwhelming, but there’s no need to try everything at once. Instead, educate yourself and your finance team about common AI applications, their benefits and disadvantages, and how you may use them in your organization.

2. Identify your inefficiencies.

AI can be a powerful tool, but it will have the most impact when applied where it’s needed most. Conduct an internal review of your current tech stack and processes to identify areas to streamline workflows and reduce inefficiencies. What are your objectives and goals — and which pain points are holding you back?

3. Upskill your staff for a new era.

Many finance teams are curious about how they can use AI to optimize their work. Provide your team with opportunities to learn more about how AI could impact their roles and improve their work. Also, take time to listen to your staff’s concerns or questions. As you explore AI applications, assess the skills required for implementing and sustaining the solutions. That way, you can provide your team with training that enables them to navigate the new roles and responsibilities that arise in an AI-powered organization.

4. Make data governance a top priority.

All AI solutions rely on data. In finance, maintaining and ensuring the quality of that data is paramount — if the inputs are lacking, then the output will be as well. Develop data governance plans to ensure the accuracy and integrity of your organization’s financial data. Best practices include processes for managing data throughout its lifecycle, deep dives into algorithms to understand what data is being leveraged, and ensuring your team is aware of any gaps or potential algorithmic bias that could impact AI outputs.

5. Develop an AI strategy for finance.

With a solid grasp of the opportunities, applications, and skills required to leverage AI, you can create a strategy for implementing the technology across your finance function. Start with your business objectives and establish goals for AI that align with your company’s objectives. Focus on the uses that provide the most benefit for your investment. In addition, create metrics to measure the effectiveness and success of your AI efforts. Finally, build flexibility into your strategy, making room for review of solutions and providing the ability to pivot if needed.

For most organizations, the question isn’t if you will take advantage of AI but when. By preparing the finance teams and the broader business for an AI era, CFOs can help ensure they’re ready to take advantage of the technology and benefit from all that AI offers.

Growth doesn’t come from standing still. Our experience shows that the strongest businesses know that AI adoption is successful when it’s integrated into a strategic tech stack and built on quality data. By optimizing existing technology and aligning AI with your organization’s goals, you can make the most impact.

Not sure where to begin? Our team can help you prioritize AI initiatives.