The Challenge of AI Implementation: CFOs Lead Strategy, But Many Struggle with Deployment

CFOs at the Helm: Navigating the Future of AI in Finance

A recent study conducted by OneStream sheds light on the evolving role of Chief Financial Officers (CFOs) in shaping and leading AI strategies in enterprises. As the pressure mounts from boards and investors for real performance outcomes from AI initiatives, CFOs find themselves in critical leadership positions, yet face significant obstacles in actual deployment.

The research surveyed over 350 CFOs across the United States, the United Kingdom, and Australia, revealing that 75% believe they lead their organization's AI strategy. However, the study also paints a stark contrast in confidence and readiness. While 67% of CFOs think their AI strategies are ahead of the curve, only 35% report a robust understanding of AI technologies, and a mere one in three have successfully scaled AI implementations within their organizations.

Rising Expectations and Investment in AI

According to the report, companies are significantly ramping up their AI investments, with expectations that AI spending will increase in the coming year. Astonishingly, 83% of CFOs anticipate a rise in AI budgets across their businesses, particularly in finance, where 80% foresee increased spending. There is a notable push for enhanced financial capabilities, with nearly 78% forecasting budget increases of up to 50% or even more.

As CFOs take charge of their AI strategies, collaboration is key. The study indicates that half of the participating CFOs have reported a more strategic partnership with CTOs/CIOs, emphasizing the necessity for teamwork in navigating AI's complexities. This cross-functional collaboration aims to align operational strategies and establish clear goals for AI integration.

The dissonance between board expectations and CFO readiness for ROI measurement creates a complicated landscape. Boards express strong support for AI, yet CFOs remain divided on how best to measure its success. About 97% of CFOs report that their boards expect regular updates on AI investments, focusing on metrics such as cost savings, productivity, and returns on investment—making it crucial for CFOs to bridge this gap.

Challenges in Implementing AI

Despite the optimism surrounding AI integration, CFOs face numerous challenges in scaling their AI initiatives. Currently, most AI applications remain isolated, with many focused on foundational areas such as financial close and planning. These applications, while beneficial, do not signify comprehensive AI deployment across the enterprise landscape.

The study highlights that a significant percentage of CFOs are still exploring generative AI capabilities, but this indicates that, as a whole, organizations have not fully embraced AI in all departments or functions. Generally, CFOs are prioritizing foundational use cases in finance over the next one to two years, which reflects an incremental rather than transformative approach to AI.

Looking further into the future, a majority of CFOs (61%) plan to harness AI for advanced decision-making, illustrating a strategic vision for the integration of technology into long-term planning. However, obstacles such as a scarcity of talent, inconsistent data quality, and integration hurdles hinder those ambitions.

The Launch of the Finance AI Academy

In response to these challenges, OneStream has recently unveiled the Finance AI Academy, a monthly video series designed to assist CFOs in effectively navigating AI applications tailored for finance. This initiative aims to empower finance leaders with the knowledge and tools to overcome obstacles related to AI deployment and deepening their understanding of AI technologies.

By promoting education and resources through the Academy, OneStream is positioning itself as a key partner in the finance industry's ongoing digital transformation, equipping CFOs for the AI-driven future ahead.

The insights from this study are vital as CFOs navigate the complexities of leading AI strategies while facing pressure for tangible results. As AI continues to evolve in importance across enterprises, the role of CFOs will only expand, emphasizing their responsibility to align organizational strategy with emerging technologies and deliver measurable business outcomes.

For more detailed insights from the study and to explore the Finance AI Academy, visit OneStream.