As CFOs are fuelling digital transformation forward, they must not overlook the critical role of AI in ensuring skills and automation across the wider organization.
FREMONT, CA: Artificial Intelligence (AI) is quickly moving from the experimental to the operational. It already goes into the operating muscle of the organization– from predicting how competitors will react to identifying which machines will need maintenance, and even forecasting best customers for coming years from now. The CFO in an organization is in a unique position to bring AI to the enterprise. The financial industry has hastened the interest in AI that CFOs are rushing to develop an AI strategy and investment plan. AI has the potential to influence business and competitive landscape. Here is how.
[vendor_logo_first]In many organizations, the CFO has responsibility for the reporting layer of data that comes in from customer-facing operations like receivables passed from the sales organization or pricing data from point-of-sale units. In the modern world of digital commerce, this puts the CFO in a powerful position to connect predictive analytics with customer behavior. Another challenge for a CFO can be in evaluating the true value of assets. Uncertainties in valuation can add or subtract millions from the bottom line.
The effective method for determining asset values is an evaluation of a large number of comparable independent transactions. This is where AI can help. CFOs and valuation specialists can use AI to assess thousands of variables to build predictive models of asset prices. These can be for acquisition or sales by the enterprise. This not only helps the firm but also provides value to buyers, sellers and lenders.
Fraud is hard to detect, predict and control. It is episodic and is often executed in small increments that escape detection. Finally, the perpetrator may distort the data trail to prevent detection. Expense fraud is projected to cost companies US$1.8 billion per year. Dealing with this risk can distract CFOs from more strategic issues. With AI, CFOs can analyze and interpret expense data and identify suspicious expense claims. They can explore spending patterns and employee behaviors and can identify and predict common behaviors of employees who falsify claims. This empowers a CFO to forecast potential fraud before it happens.
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