CFOs are being courted by Microsoft and Salesforce for new AI tool investments.

• Generative AI adoption among CFOs has been slower due to their risk-averse nature, conservative spending plans, or unclear return on investment.
• Microsoft's new suite of finance-focused AI tools, aimed at CFOs, and the increasing number of use cases could lead to the technology's rapid spread.

The optimism about the transformative potential of generative artificial intelligence continues to increase. CEO Jensen Huang recently stated on CNBC's Jim Cramer that "We're in the early stages of the AI computing and accelerated computing ramp, which will last for several years."

Across various sectors, companies are seeking ways to enhance their productivity, customer communication, and operational efficiency through the use of generative AI, innovative communication tools, and process optimization techniques.

Despite other C-suite members embracing generative AI, some risk-averse CFOs are hesitant, with concerns over ROI or cost-cutting as reasons.

In the midst of the growing trend to invest in AI, only a third of CNBC CFO Council survey respondents in the first quarter of 2024 expect their company's capital expenditures to increase over the next 12 months. Even among this group, only 7% said that the capex increase would be used to invest in new AI capabilities, which is the same as investing in non-AI technology and ranks below expanding to new markets, building new factories or other facilities, and making a strategic acquisition.

Business software providers are introducing new tools aimed at CFOs and finance teams, and real-world examples of their successful implementation are being showcased.

Microsoft recently introduced a Copilot chatbot for finance professionals that can perform tasks such as variance analysis, Excel data reconciliation, and speed up collections in Outlook. Many other software providers are quickly introducing tools that utilize generative AI or updating their existing ones with it. Some companies are creating their own tools or building on offerings from companies like OpenAI.

Most companies use predictive AI to assist with core tasks, which is not a new practice for CFOs.

For over a decade, Salesforce CFO Amy Weaver has utilized predictive AI in the finance department to forecast expenses, identify quotes with unusual terms for review, and predict the probability of customers paying on time.

Salesforce's finance team recently participated in a financial AI "moonshot" contest, where they brainstormed ways to use generative AI to enhance their processes, including quote analysis, tax credit processing, and flux analysis, among others, as stated by Weaver.

The AI-driven sales pipeline tool within Salesforce has experienced a 605% increase in usage over three quarters, as reported by Weaver.

Weaver stated, "I request my team to ponder this question: 'How can I optimize my productivity and efficiency daily by utilizing this technology?' Time is our most precious asset, and if you can utilize new technology to save time and focus on high-value and impactful work, it should motivate and thrill you. The ultimate objective is to enhance jobs not only in terms of efficiency but also satisfaction for all of our employees."

Gartner's Mark McDonald, a director analyst, advised companies to adopt AI-driven tools that simplify finance and accounting processes. However, he noted that generative AI tools present a challenge in creating auditable processes and visually inspecting them to ensure data accuracy.

McDonald stated that resistance to using technology is becoming more prevalent when companies introduce tools that overlap with human tasks, resulting in resistance.

At Salesforce, Weaver emphasizes the importance of understanding the business goals that AI tools provide, as this is crucial for successful implementation and value. She also highlights the potential failure of an AI solution if it is not adopted or if the model's performance does not meet expectations. Weaver advises defining the problem statement and objectives before investing in AI to ensure its success. When speaking to CFOs, Weaver notes that they all share a common goal of increasing productivity in their businesses.

Microsoft's message, according to Hrncirik, is that generative AI is a new skill that needs to be developed.

"We're instructing our team to establish a daily intentional habit with Copilot, just as they have with other tools they use regularly," he stated. "You didn't become proficient in those tools by chance; you put in time and effort to learn how to use them effectively and experiment with different approaches."

Gutzeit stated that we need to simplify the concept a bit by explaining that it is just another tool in the finance department's toolbox, and it is not the end-all-be-all solution.