The Sistine Chapel houses one of the most iconic Michelangelo images, “The Creation of Adam.” In the painting, a hand from God reaches out to Adam giving him life. When I think of generative AI, this image comes to mind. Though generative AI is not a divine power, its ability to create original audio, images, text, simulations, and videos has a mystical element. Humans developed it to help us eliminate repetitive tasks and error prone manual activities, but its capabilities today extend to creating content and to independent learning. In the realm of accounting and finance, its applications are limitless. CFOs should be ready to enable it if they want their organization to stay competitive.
What Can Generative AI Do?
Generative AI has many superpowers. They include:
- Speeding up financial closing processes
- Improving forecast accuracy
- Enhancing data insights
- Identifying risks and opportunities
- Supporting improved decision support
- Transforming the organization
According to KPMG, almost 50% of finance leaders in corporate roles have already deployed or are piloting generative AI while 37% are in the research and planning phase.
Is Generative AI Meeting ROI Expectations?
IBM’s 2024 CFO Study finds finance leaders under pressure to accelerate ROI across the organization’s tech stack. However, there is a risk that a focus on short-term gains will compromise long-term innovation. According to the study:
- More than half (57%) of finance leaders said they are prioritizing short-term targets over long-term ones when building their tech stacks, which not only impacts ROI but also affects long-term strategy, employee morale and sustainable business growth.
The “sweet spot” is finding a balance between cost reduction, increased efficiency, growth opportunities and cost.
The Human Challenge of AI
CFOs who implement AI solutions should be mindful of employee morale. Employees need to know AI solutions are not designed to replace them. Rather they will enhance employee value and contributions to the organization. According to KPMG, 32% of business leaders said AI would negatively impact their workforce.
How CFOs Can Reframe AI for Employees
As change managers, CFOs can reframe what AI implementation means for employees. For example, AI can reduce manual tasks, eliminate errors, and enhance productivity. As a time-saving device, AI frees up employees to work on higher-level projects like data analysis or decision support. Presenting AI as an opportunity to innovate gives employees incentives for learning how to use it. Also, offering organization-wide training in AI is essential to maintaining employee morale.
Innovation, creativity, and other uniquely human activities can be augmented using AI. I often wonder what an artist like Michelangelo would be able to produce if he were alive today and acquainted with technology. In the art of accounting and finance, CFOs should avail themselves of the extraordinary opportunity AI offers.