Majority Of CFOs Using Generative AI See Efficiency And Revenue Boost

May 28, 2024

19 5 minutes read

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Generative AI continues to transform business, and it’s seeing more use in the CFO’s office. Nearly two-thirds of CFOs—65%—are actively integrating the technology into their long-term strategy, according to a new survey from Billtrust, conducted during the first quarter of 2024.

However, while a majority of CFOs are bringing the technology to their offices, it’s clear that many are still figuring out what to do with it. The survey found only 49% said they are “very knowledgeable” about generative AI, and 34% believe the next generation of finance leaders will be the ones to truly scale implementation of the technology in finance. So it follows that most generative AI now is being utilized for simpler financial department functions, with 77% going to financial transaction processing. However, it’s being used for its analytic abilities as well—65% are using generative AI for risk assessment and management, and 59% are using it for financial reporting and analytics.

Even in these early days, CFOs say the use of generative AI is beginning to pay off. More than three-quarters (76%) already notice a difference in efficiency and process speed, while 68% have seen accuracy and error reduction rates improve. More than a third (36%) said that generative AI is already positively impacting their revenue streams, while four in 10 expect to make more money from it in the next six to 12 months.

The use of generative AI in general, as well as specific uses in the finance department, is set to increase. Nearly eight in 10 CEOs said it was likely their organizations would invest more in the technology for financial operations in the next six to 12 months. And adoption of AI technology happens quickly. Billtrust compared its results about AI use by CFOs to a similar survey by Deloitte in Q3 of 2023. Last year, only 15% of CFOs were actively integrating generative AI into their strategies, while 42% were experimenting with it.

And as time goes on—and familiarity, trust and capabilities of generative AI systems go up—the technology could offer the CFO more bandwidth to make strategic decisions. CFOs in general are being seen more as strategic partners, when it comes to business operations, and less as accountants who do the math. Generative AI can help provide deeper insights, but also give many CFOs more time to think about strategy, meaning it could help usher in a new era of human-intelligence ideas to improve sales, margins and reporting.

ECONOMIC INDICATORS

People shop at a supermarket in Montebello, California.

FREDERIC J. BROWN/AFP via Getty Images

The economy is booming for business, with markets hitting record highs, healthy GDP growth, and unemployment nearing historic levels. However, a lot of this progress is not readily visible to the average person. More than half of U.S. consumers think we’re currently in a recession, according to a Harris Poll survey conducted for the Guardian. Nearly half thought the S&P 500 stock index was negative this year, and 49% thought unemployment was at a 50-year high. It isn’t just this study, either. Consumer confidence is at its lowest level since July 2022, according to the Conference Board’s latest readings.

While part of this economic dichotomy can be attributed to the rise of online disinformation and fewer people reading well-reported business news, it isn’t the only problem here. Forbes senior reporter Derek Saul writes inflation has persisted in the post-pandemic years. Although it’s moderated from a four-decade high of 9.1% in June 2022 to 3.4% last month, many prices have yet to recede. Wages haven’t kept up with inflation, either. Since January 2021, the consumer price index has risen 19.3%, while average hourly wages have increased by 16.1%. So even without considering costs, most average consumers find their money isn’t going as far as it used to. Conference Board Chief Economist Dana M. Peterson said, “elevated price levels, especially for food and gas, dominated consumer’s concerns, with politics and global conflicts as distant runners-up.”

NOTABLE NEWS

A low price sign hangs from a shelf at a Target store in Miami.

Joe Raedle/Getty Images

As ordinary consumers are feeling inflation’s squeeze, it’s not surprising that some general retailers have seen less-than-desirable earnings. Target posted weaker-than-expected earnings last week, with sales down 3.7% year-over-year. And though the retailer anticipated a drop in sales and earnings, its share price is down more than 6% in the last five days. Target CEO Brian Cornell said he expects the retailer will get back to growth in the next quarter, as the company invests more in its digital business, same-day order fulfillment and lower prices. Target announced early last week that it was cutting prices on about 5,000 frequently purchased items.

But price cuts aren’t the only strategy to build growth in these times. Walmart—which saw its revenue increase 6% year-over-year in its most recent earnings report earlier this month—is using data to both lure in new customers and improve the experience of existing ones. Forbes senior contributor Peter Cohan writes Walmart describes itself as a “technology-powered omnichannel retailer” using data science to do things like figure out which items cost-conscious consumers are cutting back on, reduce out-of-stocks and bring in higher-income customers.

LEGAL ISSUES

getty

Auditors are not known for letting things slide, and a new study in The Accounting Review underscores that they’re not exactly forgiving of potential indiscretions that have little to do with money. The study looked at how auditors looking at a company’s books behaved when there were reports of personal incidents involving C-suite or board members, Forbes contributor Joseph Brazel writes. Auditors tended to increase fees when there were accusations of high-ranking officials misbehaving in their personal lives, and more auditors resigned from these cases. The two categories of accusations that led to the most trouble from auditors were sexual misconduct and dishonesty—which Brazel writes goes directly back to integrity and ethics of the people at the top of a company.

FACTS + COMMENTS

T-Mobile announced Tuesday it plans to buy most of U.S. Cellular’s operations, its latest transaction to expand coverage to more people.

$4.4 billion: Value of the proposed deal

4.5 million: Customers T-Mobile will acquire as part of this deal

‘Best-in-class connectivity to rural Americans through enhanced nationwide coverage’: What U.S. Cellular CEO Laurent Therivel said the deal provides

STRATEGIES + ADVICE

Interested in bringing AI into your finance team, but not quite sure what it can do? Here are some examples showing powerful use cases.

Last week, FDIC Chairman Martin Gruenberg said he is ready to step down once his successor is confirmed. Here are some lessons in leadership from his downfall at the agency, which was found to have a culture of sexual harassment, discrimination and misconduct.