As CFO, it’s your job to take a pragmatic approach toward AI technology, and leading CFOs are doing just that. According to Gartner®, “While prioritization of cost management has increased 74% since 2022, 81% of CFOs anticipate increasing technology investment.”² Amid renewed demand to carefully balance costs and growth, forward-thinking leaders recognize AI technology as a must-have for strengthening their finance function.

When it comes to AI and spend management, roughly half of decision-makers say their technology isn't meeting their current needs — let alone their future needs — according to a recent spend management study commissioned by Brex and conducted by Forrester Consulting³. An investment in AI now could pay massive dividends, accelerating and up-leveling your team’s processes and decision making.

Still, successfully implementing AI requires strategic planning to maximize the benefits and minimize any potential growing pains. Your roadmap should consider how the new technology will impact your employees’ core responsibilities and any training required.

The upside is enormous because the right AI-powered solution can effectively give your team infinite help digesting volumes of data, performing repetitive tasks, and flagging anomalies in a flash. For example, Brex’s accounting automations save finance teams up to 250 hours a year, and expense automations save employees and managers up to 4,000 a year by automating documentation and reviews.*

AI is spurring innovation for companies that know how to leverage it across their finance and ERP systems. However, CFOs must have an understanding of how AI may affect their operational, tactical, and strategic business processes before making the shift. Ideally, AI should enhance every part of your finance function, from expense and accounting automation to anomaly detection/analysis and accounts payable automation.

Once you weigh the rewards against the risks and resources required to implement AI, you will want to look for equally risk-averse providers — particularly when it comes to spend management solutions. At Brex, we have implemented stringent AI guardrails across our platform to innovate safely and protect your business, including technical security reviews and GRC Risk Assessments.

As you look to mitigate any AI-related risks, we recommend that CFOs direct their teams to:

Tannenbaum advises that you “invest in regulatory and compliance resources early on. You don’t want to get caught flat-footed and miss important changes in policy and regulation, of which there are many.”

Gartner says that “71% of CFOs surveyed plan to boost spending on AI by 10% or more compared to last year. Generative AI plays a big role in this increase, as 81% of CFOs are projecting to spend more in this area.”⁴ Meanwhile, none of the respondents anticipate reducing their AI spend going forward.

Additionally, Forrester recommends building change management into your budgeting and planning for an AI-powered spend management platform. One strategy is to prioritize feature adoption over simply feature selection.

Just because AI features exist in a product doesn’t mean they will be used. With change management being such a significant factor in transformational initiatives, you don’t want to pay up front for changes your teams aren’t ready to make. Forrester advises “planning for a phased approach to ensure your teams get comfortable using the features you are paying for, so you’re not wasting precious budget on things your team isn’t ready to use.”

IDC recommends⁵ that CFOs start by assessing their finance department's operational needs as well as opportunities for improvement in budgeting, forecasting, financial reporting, and reconciliation. Then budget a small amount for two or three use cases.

The goal is to learn how to effectively implement AI in your finance function and measure the impact before taking larger leaps or making large-scale changes.

Modern, AI-driven financial systems can help companies unlock greater insights and efficiency, ultimately improving financial performance. But in an age when every solution provider claims to be AI-driven, it’s important to separate the wheat from the chaff.

For instance, AI can automate many expense management processes and improve compliance, but some finance AI promises won’t be here for some time. Additionally, you’ll want to understand how AI impacts your current processes and work with a vendor to holistically solve any challenges without derailing operations.

IDC to look for AI vendors that can drive long-term results with:

Security is equally paramount when evaluating AI technologies, down to the granular technical controls that support privacy. The Brex team recommends asking for security-related documentation, data flow diagrams, and architecture-related documents to mitigate risk.

Signing an AI contract isn't the finish line — it's the starting gate. We talked about change management in the planning process, but mindful preparation for changes after you sign a contract will foster a smooth transition for your employees.

Leading your team through this transformation is a true test of a CFO’s mettle.

As recommended by IDC, CFOs should assess their finance department's operational needs and opportunities for improvement in budgeting, forecasting, financial reporting, and reconciliation. Then, it’s up to you to ensure your teams can successfully deliver.

“There is much work for the CFOs and their offices to do when it comes to evaluation and selection of financial applications,” IDC warns, “so don't discount the amount of time and effort that needs to go into it, as well as continue after the implementation.”

CFOs drive AI change success when they: