Listen to the article
3 minutes

This sound is generated automatically. Let us know if you have any feedback.

It is beyond dispute at this point that CFOs see artificial intelligence as a major driver of financial transformation. In a new study of 400 senior finance executives worldwide, 78% said they want to increase their investment in AI over the next 12 to 18 months.

At the same time, CFOs do not have infinite patience for a new AI effort to pan out. About half (48%) of respondents said that if an AI investment does not deliver measurable ROI within a year, it would be difficult to justify further investment.

In it studyconducted by marketing and research firm FT Longitude and released by Basware, a provider of AI-powered accounts payable software, more than three-quarters (76%) of respondents said they have reduced operating costs since AI implementation.

In fact, finance leaders cited driving cost efficiency as the number one goal for transforming finance through investment in advanced technologies like AI. More than half (55%) said the goal was in their top three for financial transformation, and 32% said it was their primary focus.

Next on the list was “driving AI innovation and leveraging emerging technologies,” which was selected as one of the top three goals by 45% of respondents.

Seven in 10 CFOs said their staff want AI support for administrative tasks, while 75% reported that AI has enabled their staff to focus on more strategic activities.

At the same time, however, many CFOs are confronted with obstacles to achieving their vision for AI success. Two in five (40%) worried that they do not have the change management skills required to execute complex transformation projects, and 33% were concerned about a lack of capital.

Other common roadblocks include a lack of clear strategic vision for the future of the finance function, difficulty proving ROI for transformation initiatives, legacy systems that are no longer compliant, and regulatory and compliance challenges.

Companies’ no-nonsense stance that they cannot justify continued investment in an AI venture that does not provide initial ROI requires them to think hard about how to measure the financial impact of such an investment.

The good news is that CFOs have the experience to understand how to prioritize use cases for investment and to estimate costs and monitor returns from reduced costs, the research report suggested. Once they have transparently proven ROI, it will be less difficult to build a case for further investment – ​​potentially in more ambitious AI projects – Basware wrote.

To date, ROI from AI initiatives is most proven in the areas of financial planning and analysis, accounts payable and accounts receivable, according to Basware.

“There’s so much buzz around AI right now that people think it’s new, but it’s actually been around for years, with use cases built into software that can add value in many different ways,” said Basware CFO Jason Kurtz.