By Uma Ganesh
The Financial function has always been at the forefront of utilising the available technology and tools for number crunching and providing insights to the management. In the era of AI too, it is redefining the contours of financial strategy by tapping into the potential of AI tools. The Finance function is no longer confined to the back office, it has become a frontline function and CFOs are the torchbearers to AI adoption. Some of the savvy CFOs are redefining their roles going beyond score keeping and post mortem analysis to becoming cost strategists—the movers and shakers in the organisation.
GenAI is enabling CFOs in the drafting of financial reports and variance analysis, thus automating financial workflows. It is possible to generate dynamic forecasts based on synthesis of historical data and real time inputs. Simulation of seasonal demand is being done with AI tools and procurement strategy is adapted leading to just in time stocking plan.
Over the years, organisations have invested in ERP, CRM, procurement systems and sales management systems. With GenAI, it is possible to tap into the data from these systems to study the patterns and arrive at quick decisions. CFOs are also able to reduce internal audit costs with GenAI generating real time compliance documentation by scanning transactions. In short, Gen AI tools are empowering them to access real time and predictive insights.
The other impactful trend being observed is that CFOs are using natural language queries in order to unearth trends from sales reports and market intelligence thus enabling them to support the CEOs to have better visibility on the overall business trends. Gen AI is being used by them smartly to tap into hitherto fuzzy areas with respect to business prospects from sales reports and develop insights on different functions for suggesting cost control measures.
For instance, the understanding of the capabilities of GenAI tools has been helpful in advising the functional heads to revisit the contracts for outsourcing. Large contracts for outsourcing that were negotiated in the earlier times based on relocation of processes from high cost to low cost later transitioned to value addition based on knowledge of customer experiences and insights. Today the CFOs of these corporations are seeking significant reduction in costs from their outsourcing partners through further reengineering by eliminating processes and resources and replacing them with Gen AI and other automation tools.
The CFO offices are evolving as the analytical hub, combining financial and non-financial data to power real-time business decisions. The process of change is beginning to happen at the behest of the CFOs nurturing cross functional collaboration. The AI-first CFOs have started playing a key role in the strategic shifts of the businesses and in enabling them to adapt quickly to emerging trends. The future-ready CFOs need to continue to build capabilities to navigate the volatile business scenarios, balancing cost and shedding non value adding tasks from time to time with the help of automation.
The writer is chairperson, Global Talent Track.
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