Artificial Intelligence (AI), digital transformation and the CFO

We have been listening to our clients and there is a real sea change when it comes to AI in the finance function.

Since financial data underpins most business operations, the finance team are well placed to become the change agents for their company when it comes to incorporating AI tech into the business and CFOs are now ramping up their finance teams to shoulder this responsiblity in their organisations. An important hard skill to have these days is experience in data led technology.

While traditional financial responsibilities such as bookkeeping, financial planning, risk management and reporting are still a large part of the role, CFOs are now becoming accountable for the strategic direction of the company as well.?The CFO needs to be on top of all developments in data analytics and related AI technology.

In the EY survey “DNA of the CFO: Is the Future of Finance new technology or new people?” 69% of global finance leaders acknowledged this change and pointed to the automation of key finances as the main factor. The same report indicated that 90% of companies throughout the world are allocating budgets for digital transformation.

The digital transformation can start with basic automation tools to handle routine, predictable processes. After standardising and automating repetitive tasks, the finance department can start applying more advanced tools such as AI and analytics to interpret data, more accurately predict what will happen according to a variety of factors, and plan for various scenarios.

Every CFO will have a different approach based on the industry they work in and the level of digital maturity in the organisation. But you’re more likely to succeed in your transformation if you focus on five priorities:·?????

1. Set clear goals·?????
2. Involve your team in designing and implementing solutions·?????
3. Define your area of focus across people, processes and performance·?????
4. Put the right governance structure in place, both for data and for AI overall·?????
5. Prepare your workforce

When it comes to recruitment within your finance team, AI is a huge selling point for attracting talent.?Many accounting professionals now expect this data-led technology to be in place.?Leveraging technology to take care of the more manual tasks also means you are building a more insight-driven finance team with a strategic mindset.

Are you undergoing a digital transformation, your thoughts would be welcomed.