How to Use Technology in Financial Leadership

AI is transforming finance — and CFOs need to be ready. In a recent interview with Adam Zaki of CFO.com, I shared some key insights from my book "AI Mastery for Finance Professionals," and how finance leaders can navigate the rapidly evolving AI landscape. Here are the highlights: 1️⃣ Data Readiness is Critical Generative AI offers incredible potential, but without mature, clean, and well-governed data, it’s not a technology that can be fully leveraged. CFOs must prioritize their data infrastructure first. 2️⃣ Start Small, Think Big Success with AI isn’t about automating everything overnight. Focus on incremental wins—projects that demonstrate impact, gain buy-in, and build momentum for broader adoption. 3️⃣ Understand the Tool, Not Just the Output AI isn’t a magic box. CFOs don’t need to be developers, but understanding how AI works is crucial to asking the right questions and trusting its insights effectively. 4️⃣ Bias Awareness Matters AI models are only as good as the data they’re trained on. Proactively test for fairness and ensure your datasets are free from bias. 5️⃣ CFOs as Strategic Leaders Today’s CFOs are more than financial stewards—they’re strategists and innovators. AI enhances this role, providing tools to forecast, predict, and guide with creativity and precision. 💡 Final Thought: AI adoption isn’t about replacing people — it’s about empowering teams and creating new efficiencies that drive long-term value. The future is here, and it’s time for finance leaders to embrace it. https://lnkd.in/emBQtfHR

The biggest part of the enterprise about to be disrupted by digital transformation isn’t IT or marketing. It’s the Office of the CFO. The role of the CFO is on the brink of a significant transformation, driven by the rapid adoption of cloud technologies and AI. Historically, CFOs have been focused on cost containment, financial health and planning, risk management, and compliance. But the rapid tech advancements coming will reshape these responsibilities and bring with them much higher opportunity and expectations. CFOs are about to pivot to a much different and more strategic role. And it’s going to be fun to watch. Future Roles of the CFO: Strategic Advisor: -50% of CFOs are involved in capability-building programs across their organizations, emphasizing the shift towards strategic leadership roles (McKinsey) . -CFOs will increasingly contribute to setting the strategic direction of the company. They will use advanced analytics and data insights to inform and guide long-term business strategies, ensuring alignment with overall corporate goals. Data-Driven Decision Maker: -67% of CFOs are now using advanced analytics for real-time decision-making, significantly enhancing their predictive capabilities (Gartner) . -Leveraging AI and machine learning, CFOs will harness real-time data for more accurate forecasting and predictive analytics. This capability will enable them to anticipate market trends and make proactive, informed decisions. Business Growth Facilitator: -CFOs who actively engage in strategic initiatives report a 20-30% higher alignment between ESG initiatives and strategic goals, demonstrating their role in driving business growth (McKinsey) . -CFOs will play a crucial role in identifying new business opportunities and revenue streams. By integrating financial planning tools such as Anaplan and OneStream, they will drive growth initiatives and support business expansion strategies. Technology Integrator: -Two-thirds of finance-related processes have been digitized or automated, showing the critical role of CFOs in technology integration (Deloitte) . -CFOs will soon oversee the integration of cloud technologies and modern ERP systems to enhance operational efficiency across the enterprise. They will be responsible for ensuring that financial processes are seamlessly integrated with other business functions, promoting a unified and agile operational framework. The CFO role is about to go through a big shift. And that evolution will position CFOs as not just financial stewards, but as pivotal strategic TECHNOLOGY leaders within the C-suite.

Allanté Collier lays out a shift from chaos to clarity through data automation that empowers finance professionals to focus on strategy, innovation and growth. Excerpt below: Your journey toward financial intelligence doesn't require massive upheaval — just purposeful steps in the right direction. Here's your actionable roadmap: ▶️ Audit Your Current State: Identify your biggest pain points — whether it's manual reconciliation, reporting delays or error-prone forecasting. ▶️ Start Small, Think Big: Begin with a focused pilot project that delivers immediate ROI, such as automating accounts payable or streamlining expense management. ▶️ Measure What Matters: Track concrete metrics like hours saved, error reduction and faster closing cycles to build momentum. Step 1: Centralize Data for a Single Source of Truth Step 2: Automate Data Entry and Validation Step 3: Deploy Dynamic Dashboards Step 4: Democratize Data Access ... while at the same time ... Cultivating a Data-Driven Culture ➡️ Leadership advocacy ➡️ Cross-functional collaboration ➡️ Continuous learning & upskilling ➡️ Feedback loops & iteration Link to article: https://lnkd.in/ePumj-nc

The CFO's Guide to AI: 5 Outrageous Mistakes to Avoid! Is your company truly ready for AI? Or are you about to make a costly blunder? Many private companies seeking to go public or an M&A exit view AI as the magic bullet. But I've seen it go sideways. Here are FIVE outrageous mistakes even innovative finance leaders make: 1. Buying Shiny Toys Before a Real Plan. You wouldn't build a house without blueprints, right? So why invest in AI tools before a clear strategy? Focus on what problems you need to solve first. 2. Chasing Random Ideas, Not Revenue. AI should drive value. Don't pick AI projects just because they sound cool or because some other company is using them.   Think, will adopting this tool genuinely impact the bottom line? 3. Ignoring Your Team's Fears. AI will transform the way we work within the company. Focus on people!   Rushing AI without preparing your team creates chaos. Don't ignore the people behind the tech. Involve them early as partners! 4. Waiting for "Perfect" Data. Perfection is the enemy of good. You'll never have perfect data. Start with what you have.  This is your starting point! Fix and improve as you go. 5. Handing It Off to IT and Walking Away. AI is not just an IT project. It's a business transformation. As a finance leader, you must own the vision. Keep the control! Strategically guide this project, and calculate the ROI. >> Imagine avoiding these pitfalls and truly harnessing the power of AI for growth. What's holding you back from adopting AI? So, how to get started? 1. Pinpoint Your AI 'Why'. If you have already identified a tool that you plan to implement. Ask why? Calculate the ROI improvement and the value it brings. 2. Talk to Your Team. Before rolling out any AI, discuss it. Understand their questions and concerns. Involve them early. 3. Start Small, Start Now. Don't wait for perfect data. Identify one small, impactful AI project you can pilot this week. ACTION BEATS PERFECTION. ---------------------------------------- Hi, I am Sunil, and I write about Finance, Technology, and Startups in the age of AI. Starting an invite-only community for senior finance folks. DM me if you are interested in joining. #IPOReadiness #PreIPO #M&A #CFO #audit101

Some of you will remember my posts between July and December of last year – every two weeks we launched a CEO guide to generative AI, and we’re keeping it up in 2024! After the launch of our book (link in the comments), which compiles our first 12 action guides, we’ll continue producing new guides to help CEOs make smarter business decisions with generative AI throughout 2024. Today’s is on the important topic of #finance.   Success in today’s volatile business environment depends on how quickly finance can turn data into actionable insights. CEOs are looking to their finance leaders to advise where budgets should be spent, how tech investments are performing, and where the enterprise is getting the biggest bang for its buck.   The smartest finance leaders are using generative AI to unlock a previously untapped world of unstructured data processing to help finance create more impactful reporting narratives. Traditional AI can only recognize patterns in financial data, but generative AI can identify key themes and trends, highlight an organization’s strengths and weaknesses, help CFOs manage risk and make investment decisions more confidently, improve productivity, drive cost take-out, increase forecasting accuracy, and create new business value.   Learn more in our 13th CEO’s Guide to Generative AI, on finance, from the IBM Institute for Business Value. This guide dives into the three most important actions organizations can take to give the finance team gen AI superpowers.   Our clients have found immense value in these guides, and I know you will too. Let me know what you think.   https://lnkd.in/g4FQ2pYp   Kareem Yusuf Ph.D, John Granger, Rob Thomas, Anthony Marshall, Cindy Anderson, Karen Feldman, Jonathan Wright, Matthew Candy, Spencer Lin, Monica Proothi, Lucas Juarez, Manish Goyal, Shobhit Varshney, Ajay Patel, Jack. Bischof, Faye Abloeser, James J. Kavanaugh, Nick Fehring, Cynthia Alexander, David Wiseman, Alex Stern