CFOs taking key role in enterprises' genAI strategies: Gartner

A study found a third of CFOs are getting involved in the development of genAI strategies

CFOs are becoming ever-more involved in the development of enterprise genAI strategies at their organisations, according to research by Gartner.

In a survey of 822 functional leaders, 34 per cent of respondents identified CFOs as being involved in developing genAI strategy for their enterprise. 55 per cent of respondents listed CTOs as involved in developing genAI strategy for the enterprise, followed by CIOs at 48 per cent, and then CEOs at 45 per cent.

"The large majority of CFOs continue to be displeased with the performance of digital investments across their organisations," said Alexander Bant, chief of research in the Gartner finance practice.

"GenAI spend is expected to be five to eight times higher than last year at most organisations, and many CFOs are playing the role of copilot to ensure these investments drive measurable benefits and profitable growth without unduly increasing risk."

According to Bant, CFOs recognise that generative AI strategies need cross-functional collaboration, including partnerships with CIOs, CISOs, and other executives.

However, many CFOs are going beyond just partnership and taking a leadership role in developing their organisation's AI strategy to align with business and financial goals as well as expectations from stakeholders like boards, investors, and regulators.

Bant emphasised that CFOs need to lead discussions to ensure AI gets deployed both cost-effectively and responsibly.

To help CFOs navigate this trend, Gartner said there are three likely stages of genAI deployment in enterprises: defend, extend and upend.

Defend

In the defend stage, Gartner said organisations must pick the "low hanging fruit" offered by genAI and develop governance and employee understanding on responsible use of the technology.

This should involve implementing tools with low barriers to adoption and finding quick wins with specific tasks.

For example, providing employee access to productivity assistants, such as Microsoft Copilot and Google Workspace, so GenAI can be applied to relevant workstreams in a sanctioned and controlled way.

"Even though these kinds of tools may seem quite revolutionary, the low barrier to adopting them means they will quickly become table stakes for doing business," said Bant.

"They will not give an organisation a sustainable competitive advantage."

Extend

The extend phase will cost more but will also have greater potential returns, according to experts.

This is where an organisation would invest in more customised applications of genAI technology, tailored to its unique circumstances of value proposition.

For example, genAI could possibly augment the capabilities of financial advisors in wealth management.

This has the potential to extend a service currently only within reach of the wealthiest individuals, providing it to a mass market audience.

Upend

Finally, in this scario GenAI could "upend" an organisation and disrupt its entire industry.

"This is the game-changing stuff that can get very expensive, very fast," Bant explained.

"But it also comes with much higher potential rewards."

This is likely to involve shifts in employee productivity or business efficiency and lead to new products, services, and markets alongside new competitors in a similar way that tech giants have disrupted adjacent markets in recent years.

This content was adapted from the session "How CFOs Must Navigate Enterprise Generative AI" at the CFO & Finance Executive Conference in Sydney. Nonclients can watch the webinar "Unlock the Future of Finance with AI."