As a Chief Financial Officer, you’re no stranger to navigating the complexities of technological change. When it comes to integrating agentic artificial intelligence (AI) into your systems, it’s crucial to approach it with the same careful consideration you’ve applied to past tech adoptions. But remember, AI brings its own set of challenges and opportunities.
George Westerman from MIT Sloan School of Management describes agentic systems as a familiar concept with a fresh twist. Think about automated processes in Microsoft Windows or the trading systems on Wall Street. These are predecessors to today’s AI agents, which can learn, adapt, and work autonomously. Unlike traditional computing, AI can do things like hold conversations with clients and process unstructured data and documents, opening up new possibilities for your finance operations.
So, where should you start? Begin by evaluating which processes could benefit most from AI. Consider potential cost savings and efficiency gains, but don’t overlook the financial and reputational risks. Leverage your existing governance and risk frameworks, but be prepared to tweak them for AI’s unique demands. As Westerman puts it, “You should already have very strong governance and policy approaches to automation.”
When assessing the return on investment (ROI) for AI, maintain the rigorous standards you apply to other investments. Niall Byrne, CFO at Qatar Investment Authority, suggests starting with pilot projects. Measure specific metrics like adoption rates and employee productivity to see AI’s real impact. Westerman warns that while AI can be pricey—similar to cloud computing—the investment is crucial for staying ahead.
AI offers significant opportunities for finance sectors, like managing unstructured data, automating planning, ensuring compliance, and enhancing customer interactions. Align your AI initiatives with your business goals, focusing on financial outcomes like cost savings and better risk management. Proactive risk management is key, addressing data security, privacy, and regulatory compliance. Kalin Anev Janse, CFO of the European Stability Mechanism, emphasizes that “Every leader, including CFOs, must champion AI and understand the systemic risks of generative AI in finance.”
Don’t forget about your team. Training and transparency are vital. Be open with your workforce about potential job changes and equip them with the skills they need to leverage AI effectively. While having top-tier AI engineers is great, a well-trained team can significantly harness AI’s potential. As Westerman advises, “Be very transparent with your people.”
In this evolving landscape, your leadership in AI adoption can make a substantial difference. By understanding and embracing these technologies, you’re not just keeping up—you’re setting the stage for future success.
