As generative artificial intelligence solutions become more common, CFOs are beginning to think differently about implementing them within organizations and within the financial functions themselves.
Over the past year, financial leaders have been able to “be well aware” the potential of agent AI solutions, particularly those. This creates a sense of urgency when it comes to adoption.
Two years ago, when the generator AI solutions were still relatively unknown, CFOs had taken a “trust but validation” approach to integrating such tools, Sankar previously told CFO Dive. But now, the approach is “the idea that now is, 'I need to act now,' Sankar said in an interview.
Agent AI check and balance
As CFOs strive to change economic disruption and business needs, they continue to understand how AI can bring the best interests of organizations and finance team members.
“Many CFOs are beginning to spend a lot of time… “What are the possibilities for AI?” Sankar said. “Where can I invest in an agent today so that I can benefit from automation?”
Agent AI – a tool created to take over tasks without human input – has expanded the interest of financial directors in recent months. Many companies have moved from the “pilot” or testing stage of such solutions to favor production, and according to a recent KPMG survey, about a third of organizations have said they have moved to deploying such tools.
As the finance chief contemplates the integration of tools such as Agent AI, we need to make sure that, especially like some, the ultimate goal of such tools is to run agent AI without human interaction.
“How can I provide a certain level of checking and balance to make sure it's doing the right thing and that the numbers coming out of the tasks that Agent AI performs are as reliable as the numbers my accountants have performed?” he said.
The finance chief wants to find a suitable location for agent AI solutions as spending on such tools continues to increase. A recent survey by Big 4 Ernst & Young found that 35% of leaders expect organizations to spend more than $10 million on such technology next year. Research shows that almost three-quarters of senior leaders believe that the entire business unit is managed by Agent AI.
That doesn't mean that agent AI tools will be completely replaced by humans. “I don't think the CFOs are in a hurry to drive their people away, and they're not replacing them with agents,” Sankar said.
But as the business grows, management may not meet that growth with more people. Because “these technologies could provide a level of automation that allows existing people to do more,” he said.
Achieving accounting and technical skills balance
The continuous evolution of AI is occurring at the same time as the role of CFOs continues to change, with CEOs increasingly leaning towards financial chiefs to drive strategy and make their financial functions run smoothly. The expansion of the main role of finance “reflects the desire to invest, the desire to sponsor a project, the desire to hire the right talent or train existing talents and become more AI-savvy and data-savvy,” Sankar said.
It also contributes to the ripple effect of the entire finance sector. For example, controllers have a responsibility to provide numbers as well as “the responsibility to provide clean, integrated, curated data to other businesses.” Meanwhile, the financial planning and analytics team has transformed into a group of managers who support “agile decisions” across the organization.
As financial functions see its roles and responsibilities continue to evolve, it is important to ensure that team members have a proper mix of both core accounting, finance and technical skills. Future financial experts may not need to become data scientists or AI models experts, Sankar said, but they need to develop a “good understanding of the technology” so that they can use it appropriately to meet the changing needs of their role.
“There is a balance between knowledge of the accounting domain and broader business knowledge and technical knowledge,” Sankar said of how future financial functions will be structured.
