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The following is a guest post from Bob Purcell, CFO at Billtrust. Opinions are the author’s own.
In these uncertain economic times, the CFO's role has never been more crucial. A recent study Billtrust conducted with IDC reveals a striking fact: 87% of respondents believe economic uncertainty has significantly elevated the CFO's importance. As a finance leader, I'm convinced that this demands a transformation of our function. It's time for CFOs to lead a technological revolution through strategic AI adoption. Those who don't risk missing a critical opportunity and jeopardizing their companies' futures.
Dragging finance into the digital age
Finance has often been the slowest function to adopt new technologies. Our caution has served us well in maintaining precision, but this approach is outdated, and the pressures we face demand a change in our thinking. CFOs are increasingly becoming strategic advisors and decision-makers, expected to drive growth beyond merely monitoring the bottom line. Many think we can get by with small changes, but the reality is that we need a full-scale transformation to address our challenges.
With 91% of CFOs viewing digital transformation of order-to-cash processes as critical, finance can no longer afford to lag in technology adoption. Yet, many still cling to outdated systems. This resistance is not only inefficient but potentially harmful to the business.
AI: The finance game-changer
In a short amount of time, Generative AI has proven to be far more than just another tech trend. It's already changing organizations from the inside out — and in finance, it's redefining processes altogether. Its impact rivals the transformative introduction of computers decades ago. Imagine asking complex questions about your business and receiving instant, data-driven insights. This isn't speculative future talk — it's happening today in forward-thinking finance teams. If you're not exploring these capabilities, you risk falling behind the curve.
Our study found 66% of CFOs believe AI will significantly impact daily financial activities. While this may seem like a good sign, I argue this number should be much closer to 100%. Companies not fully embracing AI potentially compromise their ability to compete in an increasingly data-driven landscape.
AI as a strategic asset
AI in finance goes beyond replacing accountants or automating spreadsheets. It elevates the entire function to a more strategic level. By freeing up resources from routine tasks, AI allows finance professionals to focus on value-adding activities that directly impact the bottom line and strategic direction.
This could mean dedicating more time to predictive analytics and forecasting market trends with unprecedented accuracy. It could lead to deeper, more insightful strategic planning. Or it could facilitate more direct engagement with customers and suppliers, transforming finance from the perception of being a back-office function into a key driver of business relationships.
In a competitive labor market where talent retention is crucial, offering opportunities to work with cutting-edge AI is essential. The best and brightest in finance will be drawn to companies at the forefront of tech adoption. Failing to offer these opportunities means risking both technological stagnation and the loss of top talent.
Addressing challenges head-on
Of course, AI adoption comes with obstacles. Data privacy and security are paramount concerns, especially with sensitive financial information. But let's be clear: these challenges should not lead to inaction. They are hurdles to be overcome.
This underscores the importance of choosing the right partners — established players with proven track records in data security and AI implementation. Simply adopting AI isn't enough – you need to do it right. This means investing in robust security measures and partnering with companies experienced in handling sensitive financial data.
The decision to implement AI should always be driven by specific business needs rather than following trends. Whether it's improving order-to-cash flows, enhancing risk assessment or streamlining payment processes, the focus should be on solving real business problems. AI for its own sake is misguided. AI strategically applied to critical business challenges is transformative.
Your AI action plan
To my fellow finance leaders, I propose these steps — consider them essential, not optional.
1. Audit your processes. Identify areas in your financial processes that are still manual or paper-based. Studies show that 30 to 40% of B2B payments are still paper-based — a statistic that should prompt immediate action. This presents a clear opportunity for digital transformation.
2. Invest in AI education. Ensure your team understands AI's potential in finance. This goes beyond a brief overview. It's about comprehensive, ongoing education that enables your team to identify opportunities and drive adoption.
3. Start small and scale fast. Begin with pilot projects addressing specific pain points, then rapidly scale successful implementations. In the world of AI, an overly cautious approach can leave you trailing behind.
4. Prioritize data quality. AI's effectiveness depends on the quality of data it works with. Invest in cleaning and organizing your financial data. This isn't a one-time project — it needs to be an ongoing priority.
5. Embrace continuous learning. The field of AI is evolving rapidly. Foster a culture of continuous learning and experimentation within your finance team. This means being comfortable with some level of failure. Not every AI initiative will succeed, but each provides valuable lessons.
The finance leaders of tomorrow will stand out not by their ability to crunch numbers faster or more accurately — technology will handle that. Instead, they'll be known for leveraging AI to drive strategic insights, predict market trends and guide their organizations through uncertain economic waters
