{"id":4559,"date":"2024-11-08T05:50:55","date_gmt":"2024-11-08T11:50:55","guid":{"rendered":"https:\/\/www.emagia.com\/blog\/?p=4559"},"modified":"2024-11-11T01:36:13","modified_gmt":"2024-11-11T07:36:13","slug":"why-cfos-should-lead-the-ai-transformation","status":"publish","type":"post","link":"https:\/\/www.emagia.com\/blog\/why-cfos-should-lead-the-ai-transformation\/","title":{"rendered":"Why CFOs Should Lead the AI Transformation","gt_translate_keys":[{"key":"rendered","format":"text"}]},"content":{"rendered":"<div class=\"p-5 border-radius-lg mb-4\" style=\"background-color:#e9f3ff; border-radius:20px;\">\n<h2 class=\"mt-0\"><span class=\"ez-toc-section\" id=\"the-road-to-ai-driven-efficiency\"><\/span><strong>The Road to AI-Driven Efficiency<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Generative AI can significantly reduce time spent on routine tasks, allowing employees to focus on higher-level work. By automating processes like data entry and initial email drafts, AI enables employees to become reviewers and decision-makers rather than simply task executors.<\/p><div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-flat ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.emagia.com\/blog\/why-cfos-should-lead-the-ai-transformation\/#the-road-to-ai-driven-efficiency\" >The Road to AI-Driven Efficiency<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.emagia.com\/blog\/why-cfos-should-lead-the-ai-transformation\/#ais-game-changing-moment\" >AI\u2019s Game-Changing Moment<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.emagia.com\/blog\/why-cfos-should-lead-the-ai-transformation\/#ai-as-a-tool-for-efficiency\" >AI as a Tool for Efficiency<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.emagia.com\/blog\/why-cfos-should-lead-the-ai-transformation\/#the-cfos-role-in-ai-transformation\" >The CFO\u2019s Role in AI Transformation<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.emagia.com\/blog\/why-cfos-should-lead-the-ai-transformation\/#renewed-interest-in-ai-innovation\" >Renewed Interest in AI Innovation<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.emagia.com\/blog\/why-cfos-should-lead-the-ai-transformation\/#faqs\" >FAQs<\/a><\/li><\/ul><\/nav><\/div>\n\n<ul class=\"mb-0\">\n<li><a href=\"https:\/\/www.emagia.com\/blog\/5-key-accounts-receivable-metrics-and-kpis\/\">Identifying key accounts<\/a><\/li>\n<li>Flagging accounts for follow-up<\/li>\n<li>Drafting customer emails<\/li>\n<\/ul>\n<\/div>\n<p><a href=\"https:\/\/www.emagia.com\/blog\/beyond-chatgpt-understanding-the-trends-of-evolving-generative-ai-for-finance\/\">Generative AI has evolved<\/a> significantly since Mark Shank\u2019s early days at KPMG, where it was used for predictive analytics in sectors like telecommunications and sports scheduling. Today, AI\u2019s influence in business transformation is undeniable, and companies like KPMG have made substantial investments to harness its potential. <\/p>\n<p>Shank, principal of cloud engineering at KPMG, recently shared insights on the <a href=\"https:\/\/www.emagia.com\/blog\/how-shared-services-work-gets-done-with-autonomous-finance\/\">Emagia AI for Finance<\/a> podcast, where he spoke on, among other things, why CFOs should take the lead in AI transformations within their organizations.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"ais-game-changing-moment\"><\/span><strong>AI\u2019s Game-Changing Moment<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>In AI\u2019s earliest days, only the largest organizations could afford specialized models for risk and fraud detection. However, with the advent of accessible tools like ChatGPT, companies of all sizes can now leverage AI. <\/p>\n<p>\u201cNow, a general-purpose model trained on vast amounts of data is in the hands of employees,\u201d Shank explained. \u201cIt\u2019s an out-of-the-box model that can do interesting things from day one.\u201d<\/p>\n<p>AI is quickly becoming integral to forward-thinking business operations, but a key challenge remains: <a href=\"https:\/\/www.emagia.com\/blog\/automated-cash-application-software\/\">integrating a company\u2019s unique data with AI tools to create<\/a> context-aware solutions. Shank described this as the \u201cnext batch of use cases\u201d\u2014bringing internal data to AI to unlock new levels of <a href=\"https:\/\/www.emagia.com\/blog\/bad-debt-rising-limit-it-through-ai-powered-o2c-automation\/\">automation previously limited<\/a> by high investment costs.<\/p>\n<div><a href=\"\/ai-for-finance-podcast\/episodes\/why-cfos-should-lead-the-ai-transformation-and-the-next-batch-of-use-cases\/\"><img decoding=\"async\" src=\"https:\/\/www.emagia.com\/wp-content\/uploads\/2024\/05\/why-cfos-should-lead-the-ai-transformation-and-the-next-batch-of-use-cases.jpg\" \/><\/a><\/div>\n<h2><span class=\"ez-toc-section\" id=\"ai-as-a-tool-for-efficiency\"><\/span><strong>AI as a Tool for Efficiency<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>One of AI\u2019s most transformative benefits is its ability to shift employees from time-consuming tasks, like manually drafting emails and data entry, to more value-added activities. Shank envisions a future where AI enables employees to become \u201ceditors rather than writers.\u201d For instance, generative AI can identify key accounts, flag accounts for follow-up, and draft emails, leaving employees to review and send. This automation can save significant time and streamline operations.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"the-cfos-role-in-ai-transformation\"><\/span><strong>The CFO\u2019s Role in AI Transformation<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>For CFOs, leading AI initiatives is crucial. They must assess how AI can improve productivity and decision-making, balancing costs with the potential for quality and efficiency gains. Shank noted that AI\u2019s role will only grow, making it essential for <a href=\"https:\/\/www.emagia.com\/blog\/digital-order-to-cash-initiatives-to-enterprise-wide-strategy\/\">CFOs to champion AI strategies<\/a> that align with financial goals and equip employees with powerful, productivity-enhancing tools.<\/p>\n<p>Shank urged CFOs to consider the risks of delayed AI adoption. As AI capabilities continue to expand exponentially, companies that do not keep pace may find themselves at a competitive disadvantage. Citing OpenAI\u2019s Sam Altman, Shank emphasized the rapid growth trajectory AI is on. <\/p>\n<p>\u201cIf your organization hasn\u2019t adopted this technology, you could miss out on game-changing improvements that competitors are already embracing,\u201d he said.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"renewed-interest-in-ai-innovation\"><\/span><strong>Renewed Interest in AI Innovation<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>AI has seen periods of slowed progress, often referred to as \u201cAI winters,\u201d during which funding and interest decline. Shank noted similar slowdowns in the 1980s and \u201890s but highlighted the recent flood of capital into AI startups, signaling a new era of innovation. <\/p>\n<p>\u201cCapital markets are pouring money into AI,\u201d Shank said, though he cautions companies to temper their expectations. AI <a href=\"https:\/\/www.emagia.com\/blog\/why-businesses-are-increasingly-adopting-customer-payment-portals\">adoption should focus on achievable goals that deliver clear business<\/a> value.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"faqs\"><\/span><strong>FAQs<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>What is an \u201cAI Winter?\u201d<\/strong><\/p>\n<p>\u201cAI winter\u201d refers to periods in AI\u2019s history where investment and enthusiasm have declined. These lulls, often triggered by unmet expectations, lead to reduced funding and interest in AI research. The release of ChatGPT in 2022 helped end the most recent AI winter, sparking a renewed wave of AI innovation and investment.<\/p>\n<p><strong>What is ChatGPT?<\/strong><\/p>\n<p>Developed by OpenAI, ChatGPT is a generative AI model that launched in late 2022 and quickly gained popularity for its conversational capabilities. It uses large language models (LLMs) to interact with users, answer questions, and generate creative content. In 2024, it was announced that ChatGPT will be integrated into Apple\u2019s operating systems.<\/p>\n","protected":false,"gt_translate_keys":[{"key":"rendered","format":"html"}]},"excerpt":{"rendered":"<p>The Road to AI-Driven Efficiency Generative AI can significantly reduce time spent on routine tasks, allowing employees to focus on higher-level work. By automating processes like data entry and initial email drafts, AI enables employees to become reviewers and decision-makers rather than simply task executors. Identifying key accounts Flagging accounts for follow-up Drafting customer emails &hellip;<\/p>\n<p class=\"read-more\"> <a class=\"\" href=\"https:\/\/www.emagia.com\/blog\/why-cfos-should-lead-the-ai-transformation\/\"> <span class=\"screen-reader-text\">Why CFOs Should Lead the AI Transformation<\/span> Read More &raquo;<\/a><\/p>\n","protected":false,"gt_translate_keys":[{"key":"rendered","format":"html"}]},"author":1,"featured_media":4566,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[12,199],"tags":[],"class_list":["post-4559","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-order-to-cash-analytics","category-shared-services"],"acf":[],"gt_translate_keys":[{"key":"link","format":"url"}],"_links":{"self":[{"href":"https:\/\/www.emagia.com\/blog\/wp-json\/wp\/v2\/posts\/4559","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.emagia.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.emagia.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.emagia.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.emagia.com\/blog\/wp-json\/wp\/v2\/comments?post=4559"}],"version-history":[{"count":0,"href":"https:\/\/www.emagia.com\/blog\/wp-json\/wp\/v2\/posts\/4559\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.emagia.com\/blog\/wp-json\/wp\/v2\/media\/4566"}],"wp:attachment":[{"href":"https:\/\/www.emagia.com\/blog\/wp-json\/wp\/v2\/media?parent=4559"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.emagia.com\/blog\/wp-json\/wp\/v2\/categories?post=4559"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.emagia.com\/blog\/wp-json\/wp\/v2\/tags?post=4559"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}