Artificial intelligence (AI) is changing nearly every aspect of the workplace, including the role of the CFO. As the CFO, you’re entrusted with ensuring compliance and accuracy in all financial matters. Can AI offer support for the CFO role, and if so, how?
Generative vs. Traditional AI in Finance
Before continuing our discussion of the role of AI in finance, it’s important to identify and clarify which AI model we’re talking about. For most CFOs, that means traditional AI and generative AI.
What’s the difference between generative (GenAI) and traditional AI?
- Generative AI: Creates new content such as forecasts, reports, and personalized customer interactions. It enables CFOs to model scenarios, innovate business strategies, and deliver tailored insights.
- Traditional AI: Analyzes existing data to detect fraud, assesses risk, and automates processes. It provides the reliability and precision needed for compliance and operational excellence.
Both AI models provide good support for finance teams, depending on their needs. Generative AI fuels innovation, while traditional AI ensures accuracy and stability. You can use them independently or together as needed to reap the most benefit from AI applications.
New to AI? Brief Steps to Successful AI Adoption in Finance
If you’re new to AI and wondering how your finance team can begin using it, the following list can act as a starting point.
- Choose a project for an AI pilot. A single project is best to start with; doing too much, too soon, can feel unmanageable. Good pilot projects for AI applications should have clear goals and measurable outcomes so that you can assess the ROI of the AI application.
- Clean your data. Data used to train AI models should be error-free. Remember that AI learns from large datasets; if the data it’s fed contains errors, the output will contain errors too.
- Manage expectations. Your team may be excited that AI will enhance the finance department but also help them understand that it won’t replace their knowledge and skills.
- Review all outputs. Whatever the AI produces, be sure that a skilled finance team member reviews it for biases and errors. AI outputs should never be used ‘as is’ but always reviewed by an expert.
- Work closely with your IT department. Make sure that the AI model you are using is compliant, integrates with existing systems, and has plenty of security guardrails in place.
Fast Track to AI Success: Sage AI Solutions
One way you can fast-track to AI success is by leveraging AI solutions built into the finance and accounting platforms you’re already using. Sage, one of the most popular cloud-based nonprofit accounting platforms, has introduced AI tools designed specifically for finance professionals. These include:
- Sage Copilot: A generative AI assistant that automates workflows, recommends savings opportunities, and supports faster decision-making.
- AP Automation: Streamlines accounts payable, reduces manual errors, and improves vendor relationships.
- Outlier Detection: Identifies anomalies in financial data, helping safeguard against fraud and ensures reporting accuracy.
CFOs: Leverage the Power of AI Today
AI is redefining the finance function. While it won’t replace existing finance professionals, it can augment their services, freeing up valuable time for other tasks.
For CFOs, AI offers the chance to move beyond transactional oversight and become strategic partners in growth. By embracing specialized AI tools, finance leaders can unlock efficiency, accuracy, and innovation, transforming their role and their organizations. The easiest way to get started using AI is to tap into AI within existing accounting and finance programs you may already have access to, including AI features in Sage and other accounting platforms.
Welter Consulting
Welter Consulting bridges people and technology together for effective solutions for nonprofit organizations. We offer software and services that can help you with your accounting needs. Please contact us for more information.
Recent Comments