As artificial intelligence (AI) continues to change industries, finance leaders are facing a crucial decision. New research shows that while excitement about AI remains strong, concerns over its return on investment (ROI) are causing hesitation among many CFOs.
CFOs express caution about AI spending
A Basware and Financial Times Longitude survey has revealed that although AI remains a hot topic, many finance leaders are unsure of its value. The study of 400 CFOs and finance executives globally highlights that 78% of organisations plan to increase their AI investments over the next 12 to 18 months. However, half of the CFOs indicated they would reduce AI spending if they did not see measurable results within a year.
The reason behind this caution is apparent: while AI can transform financial operations, nearly a third (31%) of organisations admit they do not have a clear strategy for its implementation. This lack of direction is a major challenge, as many CFOs struggle to prioritise AI investments amid broader economic and geopolitical uncertainties.
Challenges in AI implementation
One of the main barriers to AI adoption is the absence of a solid strategic vision. According to the survey, 41% of finance leaders said it was difficult to decide where to invest in AI due to the unpredictable nature of the global economy. Even some large corporations, such as Meta, have found it difficult to prove the ROI of their AI investments, raising concerns across the industry.
Despite these challenges, the survey highlights areas where AI has already been positively impacted. For example, AI-driven automation in finance is helping to reduce manual tasks, improve compliance, and detect errors or fraud more quickly. The survey also found that 75% of CFOs believe AI allows teams to focus on more strategic activities, such as regulatory compliance and e-invoicing.
AI brings tangible results in certain areas
One area where AI is proving its worth is accounts payable automation. Companies that have invested in AI for this purpose reported a significant return, with some organisations seeing a 136% ROI over three years. This illustrates that when AI is applied strategically, it can bring substantial financial benefits.
However, AIโs success isnโt guaranteed, and many organisations struggle with implementation issues. According to the survey, 40% of finance leaders cited poor change management capabilities as a key obstacle. In comparison, 31% pointed to a lack of a strategic vision as a hindrance to AI adoption in finance.
Perttu Nihti, Chief Product Officer at Basware, commented, “The office of the CFO handles a range of complex functions, from regulatory compliance to financial reporting. AI-powered automation can relieve pressure in these areas by reducing hours and improving efficiency. However, the success of AI investments relies on knowing where to begin and demonstrating its impact.”
Nihti concluded, “We are at a tipping point for AI. By focusing on high-value areas where AI can deliver quick, measurable results, such as compliance, error reduction, and fraud detection, businesses can justify their AI investments and show value across the organisation.”
