By Karen Williams, CFO of American Express Global Business Travel (Amex GBT)
The rise of AI is comparable to the transformative shift to mobile and streaming technologies in the 2000s – except it’s evolving at a significantly faster rate. This creates a significant and exciting opportunity for the finance function. Forward-thinking companies and their CFOs are keenly aware of this trend and are proactively integrating AI technologies to give their finance functions a competitive edge – while being laser-focused on governance: a risk-based approach is essential. A reported 91% of financial institutions have already deployed Predictive AI in fraud detection and back-office functions, reaping significant benefits.
However, a survey by Gartner for its AI in Finance report reveals only 30% of finance functions are considered “leading AI finance organisations.” It’s clear that there’s a significant opportunity for transformation across the sector, from routine processes to comprehensive operations.
The changing face of finance
In the current landscape, following post-pandemic inflation and fluctuating interest rates, the pressures on finance teams show no signs of easing. CFOs are extending their reach beyond traditional roles, with 82% reporting a significant expansion of their responsibilities over the past five years.
As a CFO, I am passionate about driving a change agenda and being bold about the possibilities to transform. Ensuring we focus on the brilliant basics is fundamental, as is stepping back and ensuring everything we do adds value and has impact, but as we look ahead, we need to challenge ourselves and think about continuous improvement. I have no doubt that AI will be a gamechanger and a key enabler to the finance organization’s continued evolution.
In finance operations, AI can be used to improve automation for routine tasks such as inputting invoices, tracking receivables, and logging payment transactions, which are typically high-cost and low-return activities. Further investment and AI solutions can then be deployed to help predict customer debts, improve working capital management, and generate accurate, timely, and consistent data.
We are focusing on integrating AI as a fundamental part of our team’s everyday processes – including finance as a key area – in our recently launched AI initiative. We have been using proprietary AI across our portfolio of services including proactive disruption management and personalised recommendations for clients for several years. Now, we’re focusing on an inward approach – building a solid AI strategy from within to streamline processes and maximise efficiency while continuing to ensure our data is accessible.
With fellow finance professionals looking to do the same, they need to ask themselves: What will the future of AI look like? How can we effectively integrate it into our processes? Should we build from the ground up? These considerations are essential for any organisation looking to harness AI’s power in its finance function.
Preparing for introducing AI
The proven value of AI lies in enhancing the finance function’s ability to predict, analyse, and uncover crucial patterns from unstructured data. This capability allows us to automate tasks, make informed decisions, process large volumes of information, and mitigate risks.
To effectively manage this mass of unstructured data, organisations must develop mature processes and streamlined approval systems. Identifying key AI opportunities within internal processes is the critical first step toward building a truly tech-driven finance function. We are also moving away from the traditional finance structure and having a diverse range of experience and skills is more critical than ever. While experts in financial disciplines such as accountancy and tax will always be important, a growing proportion of our function needs to comprise of data scientists, business analysts and engineers. Diversity of skills and experiences becomes more important.
The rapid pace of change in AI also requires CFOs to stay agile and adaptable, ensuring they can effectively navigate and integrate new technologies into their strategic decision-making.
CFOs have a responsibility to create a culture where AI is embraced and allow a structured approach to adopting AI in finance. Research institute RAND recently reported that by some estimates, 80% of AI projects fail to reach completion.
An approach which starts from the ground up and involves all employees – such as with our AI Forward Framework – will support AI buy-in from the whole organisation. We need to be confident, as finance leaders – firstly that our teams are grounded in the highest standards of data privacy, risk management and compliance; secondly that they’re comfortable with the new environment AI will create. And thirdly, that it is one we can control.
AI implementation is not without its caveats
It’s important to understand that AI is designed to augment, not replace, human roles in finance. Despite its capabilities, certain key responsibilities—such as validating the integrity of financial statements— still require human care and attention.
Adopting AI presents challenges, particularly regarding data security and privacy. As AI continues to reshape finance, fostering open conversations between CFOs and their teams about risks and opportunities is essential for successful transformation.
To stay ahead of potential implementation roadblocks, finance leaders need to build a secure AI environment, follow rigid governance, and develop teams skilled in its integration – from everyday processes to larger-scale decision making. By doing this, they can navigate a safe path that runs alongside the leading edge of tech evolution.
