The Risks and Opportunities of Generative AI for CFOs

September 14th 2023 | Posted by Phil Scott

Today’s CFOs can leverage generative artificial intelligence (AI) to drive innovation and enhance efficiencies within their organizations. Integrating AI-driven data and analytics presents many opportunities.

However, there are also risks attached to the use of generative AI in business. Top CFOs recognize this. They know the value of advantages such as cost optimization, enhanced efficiency, and improved real-time decision-making. They also possess insight into the potential risks of generative AI. We will take a closer look at these opportunities and risks that experienced CFOs understand.

Opportunities of generative AI

The most innovative CFOs embrace the opportunities that utilizing AI presents. We have listed some of the most valuable of these opportunities below.

  • Identifying cost-saving opportunities. AI-driven data analytics enable CFOs to see where cost savings can happen in the organization.
  • Accurate real-time decision-making. Leveraging the insights of AI gives CFOs access to accurate real-time information that facilitates more accurate decision-making and improved business and financial choices.
  • Process efficiencies. Automating financial tasks that are repetitive in nature allows CFOs to introduce to the business streamlined processes that are more efficient and produce cost and workforce savings.
  • Upskilling professionals. The most ambitious CFOs relish the opportunity to develop individuals and teams skilled in using AI. They know that having these individuals and teams in place enables the organization to leverage technological advancements in the most advantageous manner.
  • Gaining a competitive advantage. Utilizing the power of generative AI allows CFOs to stay ahead of the latest trends. In doing this, they gain an advantage over competitors in the market.

These are significant opportunities associated with generative AI recognized by successful CFOs. They are also able to identify the risks of adopting AI within an organization.

Risks of generative AI

Top-performing CFOs know that it’s equally as important to identify the risks of generative AI as it is to understand the opportunities. Having this knowledge allows them to mitigate these risks. You can see some of the most recognized risks listed below.

  • Security of data. CFOs are responsible for implementing security measures that protect sensitive financial information. This responsibility includes ensuring that the use of generative AI does not compromise data or leave the business open to data breaches. Mitigation against these potential risks is an essential aspect of the CFO role.
  • Ethical concerns. The ethical implications of utilizing generative AI are a major consideration for successful CFOs. They understand that they must ensure that AI-powered financial systems and processes are always fair and transparent. They also know that guidelines are essential to ensure AI is used responsibly.
  • Compliance considerations. Compliance is central to the work of CFOs. Experienced professionals understand that this includes ensuring that the use of AI does not present any legal or regulatory issues. They mitigate risks in this area by implementing internal controls to ensure compliance is established.
  • Selecting the best solution. The most effective CFOs appreciate that evaluating the generative AI solutions to use is essential. Getting this evaluation right removes the risk of using a solution that opens the organization up to security and compliance issues.

Appreciating these opportunities and risks enables CFOs to utilize generative AI in the most beneficial way for the business.