There is growing optimism regarding the transformative potential of generative artificial intelligence. We’re only getting started with this AI computing ramp, as Nvidia CEO Jensen Huang recently stated to CNBC’s Jim Cramer following the announcement of a new generation of AI processors and new agreements extending AI outside the tech industry with GE Healthcare and Johnson & Johnson. Furthermore, the acceleration of computing is just getting started. It will continue for a few years.

Businesses from all sectors are looking for ways to become involved, whether it’s through the use of generative AI to increase worker productivity, new platforms for employee and customer communication, or lowering operational friction.

Many historically risk-averse CFOs are still hesitant to embrace generative AI, even when other C-suite members have already gone on board. This reluctance may be caused by concerns about return on investment or a desire to keep total expenses low.

Just 33% of respondents to the CNBC CFO Council survey for the first quarter of 2024 stated they expected their company’s capital expenditures to increase over the following 12 months, despite the general rush to invest in AI. Only 7% of respondents in that group even indicated that capital expenditure increases will be used to fund the development of new AI capabilities, ranking below investments in non-AI technology and ahead of growth into new markets, the construction of new factories or other facilities, and strategic acquisitions.

However, business software companies are launching a new suite of solutions targeted at CFOs and finance teams, along with multiple real-world instances of these products being effectively utilised.

The amount of time the computer company’s team has been spending on reconciliation has been cut in certain cases from hours per week per person to about 10 to 20 minutes each, according to Cory Hrncirik, contemporary finance lead in Microsoft’s Office of the CFO. Since “we have thousands of people here spending a lot of time trying to figure out what’s going on, and now they can do that at lightning speed,” he added, variance analysis has also received a lot of attention.

Microsoft introduced Copilot, a chatbot designed for finance professionals, last month. It can perform tasks like variance analysis, Excel data reconciliation, and Outlook collections expediency. Numerous additional suppliers of business software have sought to swiftly launch generative AI-powered products or integrate it into their already-existing ones. ones businesses are developing their own tools, or developing ones based on products from businesses such as OpenAI.

For CFOs, using AI in general is nothing new; most businesses utilise tools like predictive AI to assist with essential duties.

Predictive AI has been utilised in the finance department at Salesforce “for nearly a decade to help us forecast expenses, flag quotes with abnormal terms for review, and to predict the likelihood of customers to pay on time,” according to CFO Amy Weaver.

However, this new wave of generative AI offers a fresh potential, and according to Weaver, the last year has seen a mad rush of interest in generative AI across all industries. According to her, “every company is considering their AI strategy.”

In an effort to come up with creative uses for generative AI, Salesforce’s finance team recently participated in a financial AI “moonshot” competition. The company’s entries included ideas for using AI to “improve our processes around quote analysis, tax credit processing and flux analysis, and many, many more,” Weaver said.

Weaver reports that utilisation of Salesforce’s built-in AI solutions, such as one that offers AI-driven insights and forecasts regarding its sales funnel, has increased by 605% in just three quarters.

“I ask my team to think about this question: ‘How can I be more productive or efficient each day by leveraging this technology?’ We all know that time is our most valuable resource, and if you can free up time to focus on more high value and impact work by leveraging new technology, that should excite you and motivate you. Ultimately, the goal has to be to make jobs not just more efficient, but also more satisfying for all of our employees,” Weaver said.

Organisations should strive to implement AI-driven solutions that “serve the lowest common denominator of finance and accounting processes that exist in every company,” according to Mark McDonald, director analyst at Gartner, where he focuses on digital technologies in finance. These tools have value that businesses can immediately gain. He did note that one issue with generative AI tools is that auditable processes or the ability to physically monitor the processes to verify the accuracy of the data or conclusions present a challenge.

Conversations with CFOs often include inquiries regarding artificial intelligence (AI), according to Gina Gutzeit, senior managing director at FTI Consulting and head of the company’s CFO Solutions division.

Concerns have been raised over the dearth of excellent use cases, particularly for smaller businesses, and she has observed businesses experiencing anxiety related to deployment. “Do we have the necessary skill set once we put it in, and how do we get it to work?” she questioned. “It requires constant maintenance, and I believe that’s the main reason for the hesitation,”

McDonald notes that circumstances where businesses are “introducing a technology that really starts to overlap with what we’ve relied on people to do, and what ultimately happens is resistance” are a growing problem when it comes to reluctance to using digital tools.

Weaver stated that her responsibility at Salesforce is to ensure that the business objective that these technologies serve is well understood, as this is essential to their adoption and usefulness. “If an AI solution is not implemented or if the model’s performance falls short of expectations, it may not succeed. To ensure that the investment in AI is successful, she advised taking the time to clearly identify the issue statement and objectives. “One thing always comes up when I talk to CFOs: they’re all looking for the best way to increase productivity in their companies.”

According to Hrncirik, Microsoft views generative AI as a “new skill that we have to develop.”

“We’re telling our people that they need to build a daily intentional habit using Copilot, just like any of the other tools you have at your fingertips,” he said. “You didn’t learn to use those by accident, you invested some time, you learned how to use them and you tried different things.”

Although the technology is still in its infancy, Hrncirik expressed his expectation that CFOs will recognise its advantages. “These technological advancements are so time-saving; they help people focus on other things by taking up some of the mundane, unloved work that they would otherwise have to do.”

“This is just another tool in the toolbox for a CFO and the finance department; it’s not the beginning of the end of everything,” Gutzeit said, trying to demystify the situation a little.

(Adapted from CNBC.com)

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