Artificial intelligence (AI) is revolutionizing the accounting profession by automating routine tasks, enhancing efficiency, and opening new avenues for strategic decision-making and organizational growth.
Integrating AI into the finance function sparks excitement and raises important ethical questions. It also highlights the need for strong governance and accuracy to ensure responsible adoption.
In August 2024, AICPA® & CIMA® gathered its Future of Finance Leadership Advisory Group (FFLAG) to address vital issues CFOs and finance teams face. This group is comprised of about 60 senior finance leaders from large corporations who meet every other month to network and learn from each other on the most pressing topics and challenges of the day. That includes generative AI, digital transformation, data analysis, young professionals, talent strategies and more.
FFLAG members, convened by AICPA and CIMA in 2021, met this August, and the workshop and discussions held resulted in a robust thought leadership piece: Strategic Insights from Future of Finance Leadership Advisory Group Meeting #23 Transformation, Technology (Gen AI), and Talent from the Perspective of Finance Leaders.
The Future of Finance Leadership Advisory Group, consisting of CFOs and senior finance executives from Fortune 500 and Global 1000 companies, discussed various AI topics while piloting the generative AI tool Snapsight by Gevme.
Snapsight summarized their discussion to draft the report. It was then reviewed internally and edited, and the attribution of quotes was confirmed with FFLAG members.
Using a generative AI tool made the drafting process fast, and raw insights were converted into a structured document. There is no doubt about the power of generative AI, but oversight and management are vital.
Gen AI accelerates processes but can’t replace human expertise
Generative AI can streamline processes, taking large amounts of data and transforming it into insights, but generative AI has limitations.
While main takeaways and actions from meetings can be gathered, generative AI cannot critically evaluate context, validate insights or assess the nuances of conversations. Human expertise is essential.
Humans must apply their insights, adjust the language to adhere to an organization’s tone of voice, correct any misinterpretations and ensure the final product meets legal and professional standards.
For example, AI can assist in drafting analyst call scripts and follow-ups and preparing materials for board meetings. Still, human review is vital for quality and accuracy in Investor Relations work.
Using Snapsight during the Future of Finance Leadership Advisory Group meeting is also an example of how generative AI can streamline processes. Instead of spending hours compiling notes and shaping them into a narrative, the AI tool can quickly analyze the conversation, identify key themes, and provide a draft that captures the main topics of discussions.
The Strategic Insights from Future of Finance Leadership Advisory Group Meeting, Transformation, Technology (GenAI) and Talent from the Perspective of Finance Leader report demonstrates a practical use for integrating generative AI.
Critical actions for finance leaders
During the meeting with the Future of Finance Leadership Advisory Group, four key themes surfaced as essential factors for finance leaders at the helm of AI-driven transformation. Navigating AI adoption, transforming the finance workforce, providing transformational leadership and redefining value creation.
The conversation revealed a concern about data security and privacy in an age of increasingly sophisticated cyberattacks.
Finance leaders entrusted with sensitive financial information must recognize the importance of robust cybersecurity measures to protect against data breaches and maintain stakeholder trust.
The finance workforce is evolving alongside AI. Traditional finance roles have adapted to include technological proficiency and data literacy demands. AI can drive finance teams beyond traditional metrics, contributing to business innovation and value creation. Generative AI can drive valuable outputs in thought leadership and business transformation when paired with human intervention.
Senior finance leaders are now uniquely positioned to lead their organizations by combining technological skills and financial acumen. Their close collaboration and leadership with IT and Operations teams mean they can ensure AI adoption is aligned with business goals and strategies.
As finance leaders and CFOs explore AI’s potential, human oversight remains essential to ensuring accuracy, ethical compliance, and quality.
Strategic leadership must be front and center to ensure organizations can navigate the challenges and opportunities AI and generative AI present.
Access Transformation, Technology (Gen AI), and Talent from the Perspective of Finance Leaders and explore essential key actions for finance leaders when exploring AI adoption.
Through the Business Learning Institute, powered by AICPA & CIMA, you can also discover a wide range of research and thought leadership on the current and future business environment.