The CFO's role in the age of generative AI

At the MIT Sloan CFO Summit held in November 2024, amid panels on generative AI, FP&A, and CFO best practices, a key insight emerged: generative AI for CFOs is not just about automating tasks—it’s elevating their strategic influence. Moody’s CFO, Noémie Heuland, emphasised how AI amplifies the need for interpersonal finesse, urging finance leaders to balance technological expertise with human connection.

This aligns with a pivotal trend: by 2026, 47% of generative AI investments will target growth, far surpassing the 10% earmarked for experimentation. Clearly, CFOs must adapt swiftly to leverage this transformative power.

Ready to reshape your strategy? Dive deeper into this evolving role.

The Current Role of a CFO

When critical financial challenges arise—allocating resources, managing risks, or ensuring compliance—the CFO is the linchpin. Imagine a company planning to expand into new markets; the CFO meticulously analyses costs, forecasts returns, and shapes the strategy. Their expertise bridges numbers with actionable decisions.

CFOs juggle diverse responsibilities: financial reporting, budget management, compliance oversight, and asset protection. They collaborate closely with CEOs, transforming financial data into growth strategies. Yet, their role demands long hours of manual data analysis—slowing agility and limiting focus on innovation.

By anchoring the organisation’s finances and future, a CFO balances operations with strategy. But how does their role evolve with generative AI? Let’s find out.

How Generative AI is Transforming the CFO's Role

Let’s explore how this technology is revolutionizing their roles.

Redefining Stewardship

Today, CFO’s stewardship includes intangible assets—data, algorithms, and customer relationships. These elements are increasingly critical to business differentiation.

Generative AI helps CFOs tackle familiar challenges like detecting financial anomalies and preventing fraud by monitoring transactions in real-time. It also addresses emerging concerns like the lack of transparency in AI systems (often called "black box risks") and rising cybersecurity threats. If your aim is to stay ahead, then as a CFOs, you must focus on developing clear policies for data privacy and the ethical use of AI—issues many organisations are already grappling with. 

Notable Mentions

• 64% of CEOs believe the success of generative AI relies more on people’s adoption than on technology.
• CFOs are increasingly tasked with protecting data, algorithms, and customer relationships, now considered key assets.
• 61% of CEOs acknowledge adopting generative AI faster than employees can comfortably adjust.

The Operator’s Role in Transformation

The operator aspect of a CFO’s job, focused on financial reporting and operational efficiency, is undergoing a dramatic shift. Generative AI automates tasks like invoice processing, budget management, and reporting. These tools eliminate errors, save time, and boost efficiency across the finance team.

AI-powered "accounting copilots" flag discrepancies, recommend actions, and execute adjustments. Business intelligence is also evolving, with AI enabling real-time, conversational analytics. This allows CFOs to extract actionable insights quickly, turning conventional data analysis into a faster, more precise process.

They Now Drive Strategic Growth

The growth of the company depends upon analysing the volatile factors (market historical data & trends). CFOs now can act as proactive growth drivers. Generative AI equips them to harness real-time insights from internal and external data, facilitating accurate forecasting and dynamic scenario modeling.

For example, AI can model scenarios to prioritise activities like maintenance versus new investments or decide between share buybacks and dividends. By leveraging real-time insights, CFOs align financial goals with strategic business opportunities, becoming key contributors to innovation and growth.

Balancing Automation with Human Expertise

While AI transforms finance, human expertise remains vital. CFOs must validate data accuracy, ensuring AI-driven insights are trustworthy. The "human-in-the-loop" approach balances automation with accountability, particularly for critical decisions.

Additionally, workforce transformation is essential. As CEOs increasingly hire for AI-related roles, CFOs must focus on reskilling finance teams to work effectively alongside AI. Balancing technology adoption with employee engagement will define the success of AI integration.

CFO Matt Comyn’s AI-Driven Strategy at Commonwealth Bank

The use of artificial intelligence in financial forecasting is no longer an experiment—it’s a defining strategy for competitive advantage. At the Commonwealth Bank of Australia (CBA), CEO Matt Comyn has leveraged AI to transform financial operations, setting a benchmark for what’s possible.

CBA partnered with H2O.ai to implement advanced models capable of analyzing millions of customer transactions, market dynamics, and macroeconomic trends. These tools don’t just provide forecasts; they offer granular insights into shifting customer behaviors and economic signals. Comyn stated, “AI has allowed us to anticipate customer needs and tailor services in ways we couldn’t before.”

One result of this initiative is a 40% reduction in call center wait times, achieved by deploying AI-powered app messaging. Additionally, AI systems have streamlined anomaly detection, ensuring potential financial risks are addressed before they escalate.

The Path Ahead

You’ve seen how generative AI is automating routine tasks, enhancing financial oversight, and enabling smarter strategic decisions. But learning about its potential is just the beginning. To stay ahead, you must embrace adaptability and equip yourself with the skills to work alongside these advanced technologies. Leaders like Matt Comyn of Commonwealth Bank of Australia have already shown how AI can be leveraged to anticipate needs and create competitive advantages.

The path forward is clear: adopt a proactive mindset, invest in understanding AI’s capabilities, and lead your organisation into the future of finance with confidence. Generative AI is not just a tool—it’s an opportunity to reshape your impact as a CFO.