AI benefits may take time; CFOs should still push for investment

Today, most leaders agree generative AI will benefit their organizations, and early research shows that AI adoption has been broad and swift across different sectors of the economy. Profits will grow as companies learn how to maximize the value of their AI investments.

However, as more companies and more CFOs venture into the world of AI, decision-makers need to understand what realistic outcomes look like in the short term and the strategies needed to support long-term success. AI comes with an unavoidable upfront cost, and it will likely take time to realize its full benefit, but, with proper preparation and enablement, it’s a worthwhile investment that CFOs should champion.

Invest early and manage expectations

Everyone in the C-suite (and those responsible for or those heavily scrutinizing the profitability of an organization) must remember that just like any other business investment, AI needs time and support to fully pay off. One way to help manage expectations is by identifying an ROI timeline. That way, you can keep your C-suite colleagues, employees and shareholders if you’re a public company informed as to when you expect to see the most tangible benefits from this technology.

Engage employees and invest in training

To ensure that your AI is worthwhile — because it’s not cheap — your organization needs to prioritize upskilling your people before, during and after implementation. As the CFO, you control the budget, but not always the implementation or deployment of certain resources. In the case of AI, it’s imperative that you work with departmental leaders to make sure AI engagement is encouraged and employees have the right training to succeed. The bottom line is you can’t just invest in software; you must also invest in support to get the job done right. With enough time and training, AI can change the way that your company operates.

Take stock before investing further

While the enthusiasm is great, I encourage all leaders to make sure that their users are getting the most benefit from this technology. Measure usage against your goals so that even if you do not see a direct correlation to profitability or revenue growth, you can see productivity gains. If certain users are not using their licenses, reassign them. It’s all about making the most of what you have first, proving the value and then making calculated decisions from there.

Ultimately, there is no disputing the huge potential for AI and why CFOs should get behind the investment. As you get ready to accelerate your AI strategies, remember to be patient, invest in training and enablement and measure success early and often. With those three elements in mind, your AI investment will pay off — even if it takes time.

Adapted from: “AI benefits may take time; CFOs should still push for investment”, by Jim Caci, CFO at AvePoint, published on CFO News on 21 June 2024.