AI Revolutionizing CFO Roles: From Compliance to Growth Leadership

The Shift of CFOs from Compliance to Growth Leadership

In a rapidly evolving financial landscape, a recent survey conducted by Avalara has unveiled significant insights into how artificial intelligence (AI) is reshaping the role of Chief Financial Officers (CFOs) in the U.S. and U.K. Titled the 2025 CFO Pulse Survey, this study highlights that over two-thirds of CFOs believe they are transitioning from traditional compliance roles to becoming leaders in enterprise growth.

Key Findings: A Transformation in Perspective

According to the survey, 68% of CFOs expressed that their responsibilities are shifting away from mere compliance to focusing on strategic growth initiatives. This comes at a time when they face unprecedented pressures due to technology disruptions, complex regulations, and the ongoing volatile global economy influenced by conflicts, fluctuating tariffs, and rising living costs.

Moreover, 76% of those surveyed stated that evolving trade policies are pushing them toward integrating AI-powered financial infrastructures. However, despite these ambitious goals, many CFOs encounter barriers related to governance and trust when implementing AI technologies effectively.

The Discrepancy Between AI Ambition and Reality

While there is strong belief in technology's potential to transform finance roles, a significant gap exists between ambition and execution. A notable 71% of CFOs feel confident about their teams' capacity to adopt AI, thanks to support from executives and effective training programs. Nevertheless, Avalara’s survey revealed that practical deployment of AI remains a challenge.

For instance, even though a shocking 40% of CFOs are anxious about cross-border regulations, only 14% have invested in AI-driven compliance platforms for these challenges. Additionally, just 26% have achieved full compliance with electronic invoicing requirements, despite 37% acknowledging those mandates as a substantial operational strain. Instead, many are prioritizing less impactful AI technologies, such as internal GPTs and predictive analytics, over essential compliance needs.

The Balancing Act: Stability vs. Transformation

CFOs today find themselves in a precarious position, balancing the necessity of maintaining stability with the need for transformation amidst economic pressures like inflation and trade tensions. Sixty-eight percent believe that with the right tools and expertise, they can lead significant transformations beyond mere compliance. Yet, nearly one-third of them (29%) expressed uncertainty regarding their organizations' readiness for AI, citing resistance to change, insufficient AI expertise, and a lack of robust leadership support as key barriers.

Trust and Education: Pathways to Successful AI Adoption

Ross Tennenbaum, President of Avalara, commented, “Finance leaders are evolving faster than ever, balancing disruption with opportunity.” He emphasized that AI not only allows CFOs to shift from managing compliance to driving growth, but also highlights the importance of alignment across compliance, insights, and strategy.

Among those already utilizing AI, nearly a quarter (24%) have fully automated their operations, while over a third (34%) have automated crucial, high-impact functions. Most reported benefits in areas including forecasting, supply chain management, cash-flow analysis, and risk mitigation. However, concerns regarding regulatory scrutiny, data security, and workforce readiness persist, hindering the wider adoption of AI solutions across finance teams.

To cultivate trust and scale operations responsibly, CFOs are focusing on priorities such as AI education (22%), integrated finance platforms (21%), expanding automation (20%), gaining insights into regulations (19%), and enhancing executive influence (18%). Many are opting for a cautious approach, initially implementing AI in lower-risk scenarios and constructing oversight frameworks to bolster the case for more extensive implementation.

Conclusion: A Call to Action for CFOs

Avalara recently introduced substantial AI enhancements with their new offerings like Avi Everywhere, MCP Servers, and Global Compliance Innovations. These innovations are explicitly designed to empower CFOs and their teams to fully realize their strategic AI objectives, while enhancing accuracy and efficiency in tax and compliance activities.

In conclusion, the Avalara 2025 CFO Pulse Survey underscores the pivotal role CFOs will play in harnessing AI to navigate the complexities of modern finance. As these leaders redefine their roles in this transformative era, those who adapt promptly and strategically will undoubtedly emerge as frontrunners in financial leadership.

For further insights into how CFOs are redefining growth leadership in the wake of AI implementation, consider accessing the full Avalara 2025 CFO Pulse Survey report.