Why investing in artificial intelligence is key for CFOs to unlock enterprise growth

Emerging technologies continually promise to transform the business landscape, with innovations like the internet, mobile, and cloud computing, as well as big data and analytics driving significant changes in recent years. Now, artificial intelligence (AI) is set to deliver on its own transformative promise. While companies have been exploring AI applications for decades, organisations can now harness AI to drive substantial advancements across everyday applications as the technology becomes even more accessible. 

Enterprises are well-positioned to capitalise on AI, and such investment keeps these businesses ahead of the curve and maintains their competitive edge. Companies must pivot their focus beyond exploring AI to integrating it into core operations to drive increased efficiency and new growth opportunities. Strong executive support is crucial for successful implementation, with chief financial officers (CFOs) playing a vital role. 

AI is not just nice to have anymore; it's an imperative. AI can enhance various strategic applications, from improving forecasting accuracy for the finance department to automating everyday, repetitive tasks across the organisation, letting teams focus on more strategic activities. It also enhances risk management by providing more precise data analysis. These improvements contribute to better decision-making and operational efficiency.

Confidence in AI among enterprise leaders is growing, with SAP Concur's data showing that 63 per cent of CFOs are investing in cutting-edge technology solutions in 2024 compared to 33 per cent last year. The proportion of CFOs investing in AI has increased 240%, from 15% to 51%, in the same timeframe.

The focus has shifted to the opportunities AI presents as business leaders increasingly recognise that AI can augment human capabilities rather than replace them. This shift in perception is crucial for successful AI adoption.

Digital transformation remains a priority for companies, especially in uncertain economic conditions. AI-powered process automation can streamline workflows and increase productivity, while cost management systems can also benefit from AI by optimising expenses and delivering significant cost efficiencies. Organisations are partnering with trusted vendors to implement AI strategically, overcoming the complications that arise from an 'AI for AI's sake' approach. These partnerships help enterprises procure the best available AI tools and add-ons that integrate into their existing technology stacks seamlessly, which accelerates their digital transformation initiatives. 

Investing in implementation partnerships with trusted vendors lets businesses integrate AI more thoughtfully into their existing systems and workflows, rather than deploying solutions in isolation. This strategic collaboration focuses on aligning AI initiatives with the company's broader objectives, maximising value and impact.  

Trusted vendors bring expertise, proven methodologies, and a deep understanding of best practices, which help organisations navigate the complexities of AI implementation. Enterprises can avoid unnecessary expenditures and realise tangible benefits, such as enhanced efficiency, improved decision-making, and sustained competitive advantage, by leveraging these partnerships.

CFOs play a critical role in driving AI implementation projects. Crucially, they are responsible for encouraging teams to identify areas where AI can add value and streamline operations. CFOs should promote cross-functional collaboration between finance, information technology, and other departments to integrate AI into various processes seamlessly. CFOs who champion data-driven decision-making and provide the necessary resources and training empower employees to leverage AI tools effectively. This approach enhances operational efficiency and creates an environment where AI is viewed as a vital component of the business's strategic toolkit. 

CFOs can also drive AI implementation by setting clear, measurable objectives for AI projects and monitoring their progress closely. Key performance indicators (KPIs) let companies track the impact of AI, including cost savings, revenue growth, and risk mitigation. Regular reviews and adjustments based on these metrics keep AI initiatives aligned with the organisation's goals. CFOs can also advocate for continuous learning and adaptation, encouraging teams to stay updated with the latest AI advancements and best practices. This proactive stance lets enterprises both implement AI effectively and evolve with the technology, maintaining a competitive edge.