A Brief Overview of a CFO
A CFO, Chief Financial Officer, is a top level financial controller that manages an organization’s finances. They oversee a variety of aspects such as financial planning/reporting, performing deep dives into every financial detail, budgeting, expense control, risk management, record keeping, deciding of future investments, controlling cash flow and handling negotiations. The main objective of a CFO is to get a handle on a business’ finances and help secure the financial future.
Chief Financial Officers also offer worthwhile characters that aid in initiating and achieving financial growth. These qualities are, but are not limited to accuracy, strong leadership skills, high integrity, high ethical standards, knowledge of business, financial competence, communication skills and financial foresight.
How AI Changed The Game For Already Agile CFOs
Chief Financial Officers have been essential for growing businesses from the beginning. Offering security and accuracy in all financial aspects has companies continually relying on their strategies while also confidently implementing CFO’s best work practices. CFOs are truly a game-changer when it comes to business practices.
Over the past few years, we have seen businesses become more dependent on cloud and mobile technology. To keep pace with businesses demands, companies must have the right technology to not only keep up but stay competitive. So how does AI change the role of a CFO? Does it hinder or refine the role and responsibilities of a Chief Financial Officer?
Change and challenges are nothing new for Chief Financial Officers, in fact, they are extremely adaptable while still providing impressive precision. Some challenges CFOs already face is lack-luster growth, a competitive market, transforming business models and combing through extensive amounts of data. With changes coming to best business practices, now that companies depend on technology more than ever, CFOs are uniquely equipped to lead the charge.
There are a few technologies, working with numerous analytics approaches and tools, that change the ways of finance in companies led by CFOs:
- Robotic Process Automation (RPA) is a form of business process automation that is based on software bots or AI (artificial intelligence). RPA tools have technical similarities to graphic user interface testing tools. They differ though by allowing data to be handled between multiple applications.
- Intelligent Process Automation (IPA) is a collection of technologies that manage, automate, and integrate digital processes. IPA is made up of Digital Process Automation (DPA), Robotic Process Automation (RPA) and Artificial Intelligence (AI)
- Digital Process Automation (DPA) is a method where digital technology automates one or more tasks during the business process. This software is used to automation and optimize business workflows.
- Artificial Intelligence (AI) this refers to intelligence demonstrated by machines. Machines made with AI can perform tasks that usually require human intelligence.
According to the CFO Signals Survey, Artificial Intelligence (AI) was included as one of the top strategic shifts especially in response to the current economic environment. Many Chief Financial Officers and other financial leaders are eager to explore Artificial Intelligence’s potential as another cutting edge tool for their arsenal. Artificial Intelligence offers a wide variety of benefits to Chief Financial Offers such as:
- Enhanced Decision Making
- Organization Tailored Forecasting
- Better Budgeting Forecasting
- Accurate Predictive Analytics With Customer Conduct
- Directly Involving Frontline Workers
- Better Protection Against Internal Fraud
- Clearly Defined Areas of Focus
- Setting Clear Business Wide Goals and Objectives
- Proper Preparation of Corporation’s Workforce
- More Efficiently Run Finance Functions
- Lower Costs
- Greater Accuracy
- Higher Speeds
In conclusion, Artificial Intelligence and Chief Financial Officers are a powerhouse for your organization’s financial department. Typically, finance was focused on an in-depth assessment into an organization’s past to determine the former, current, and future financial state. Artificial Intelligence will remodel a Chief Financial Officer’s responsibilities with more data-driven power of prediction, a forecast of the best financial strategies, accurate depiction of an organization’s spending, prediction of financial loss or gain, an empowered workforce, how competition will respond, how customers will react, and where risks will emerge – all with the predictive capability of AI. The first step for a Chief Financial Officer is how they want to implement AI and which software will bring about more secure financial growth to the organization. Once implemented the role of a Chief Financial Officer will step into a more empowered role of financial decision making that will not only meet but surpass today’s business needs.