CFO’s Should Take “Co-Pilot Role” to Get the Most Out of AI

The chief financial officer role is considered critical for the success of the enterprise’s Gen AI strategy.

A pecking order inside companies shows who counts when managing a company’s success with its artificial intelligence investments.

On that list, chief financial officers are ranked fourth behind chief technology officers, chief information officers, and chief executive officers out of 10 C-level AI management role, according to a new Gartner study.

“The large majority of CFOs continue to be displeased with the performance of digital investments across their organization,” said Alexander Bant, chief of research in the Gartner Finance practice. “GenAI spending is expected to be five to eight times higher than last year at most organizations, and many CFOs are playing the role of copilot to ensure these investments drive measurable benefits and profitable growth without unduly increasing risk.”

The Gartner report surveyed 822 C-suite officers in late 2023. It showed that 55% of respondents listed the chief technology officer (CTO) as the senior executive who’s most involved in developing GenAI strategy for the enterprise. The chief information officer (CIO) is at 48%, and the CEO is at 45%, which is close behind.

Meanwhile, 34% of respondents identified CFOs as involved in developing GenAI strategy for their enterprise, Gartner reports. That ranks ahead of the chief information security officer, chief operating officer, chief marketing officer, and chief strategy officer, the survey noted.

“CFOs know that GenAI strategies must be cross-functional. They are leaning in with their CIOs, CISOs, and CDAOs. But many are going further than just partnership, and instead playing a leadership role in crafting a GenAI strategy that aligns with and enhances the business and financial strategy for the board, investors, and regulators.” said Bant. “They must foster discussions that will ensure cost-effective and responsible deployment of GenAI.”

Three New “Power Tools”

What toolsets should CFOs bring to the table on Gen AI deployment initiatives?

Three in particular, tabbed as “Defend”, “Extend”, and “Upend”, Gartner executives stated at Gartner’s recent CFO and Finance Executive Conference in Sydney, Australia.

Defend: The defend phase prioritizes “picking the low-hanging fruit” that Gen AI initiatives can offer (like using productivity assistance like Microsoft Co-Pilot) while still installing “responsible use of the technology” among management and staff.

“Even though these kinds of tools may seem quite revolutionary, the low barrier to adopting them means they will quickly become table stakes for doing business,” said Bant. “But they will not give an organization a sustainable competitive advantage.”

Extend: The extended phase will likely prove to be more costly for CFOs, and the rewards are greater in doing so.

“This is where an organization would invest in more customized applications of GenAI technology, tailored to its unique circumstances of value proposition,” Gartner notes, citing case uses like supporting financial advisors in the money management sector.

Upend: At the upper tier sits full-throttle GenAI, which can generate so much of a competitive advantage that it can “disrupt an entire industry.” Bant says that means a significant shift in how companies use employees in creating groundbreaking new products and services.

“This is the game-changing stuff that can get very expensive, very fast,” Bant noted at the conference. “But it also comes with much higher potential rewards.”

Recent Posts

Leave a Reply

Your email address will not be published. Required fields are marked *