In the realm of corporate finance, the investment in artificial intelligence (AI) is an increasingly pivotal and pertinent subject. Renowned tech CFO Mark Hawkins, boasting an extensive 40-year tenure in the industry, offers valuable insight into this matter. He underscores the necessity of clearly delineating the use case for AI, in order to render it more credible and comprehensible for stakeholders.
Hawkins, who has held pivotal financial roles at esteemed companies such as Salesforce, Autodesk, and Logitech, underscores the significance of presenting the mathematics, return on investment (ROI), and success metrics to establish credibility with board members. Furthermore, he accentuates the imperative nature of transparency regarding potential risks, as well as the articulation of the governance framework for technology.
Moreover, CFOs must effectively convey the opportunities and potential outcomes of AI, aligning them with the company’s overarching objectives and principles. It is crucial to furnish comprehensive details and address any concerns, particularly when engaging in discourse with technologically astute individuals.
According to Gartner, expenditure on AI software is poised to escalate significantly, projecting an estimated $297.9 billion and a compound annual growth rate of 19.1% by 2027. This serves as testament to the mounting interest and investment in AI technology.
Hawkins likens the potential of AI to the emergence of electricity, noting its capacity to substantially enhance people’s abilities and productivity, potentially fostering unprecedented value and business models. Reflecting on his own journey in the tech industry, he has witnessed the remarkable growth and development of companies throughout his career.
Notably, Matt Lesmeister has been appointed as the CFO at flyExclusive, Inc., while Kevin Nihill has assumed the position of CFO at Rhinebeck Bancorp and Rhinebeck Bank. These appointments underscore the burgeoning influence of financial professionals in the technological and banking spheres.
A recent research collaboration between Mercer and Oxford Analytica suggests that AI has the potential to profoundly impact productivity and GDP growth in developed and emerging markets alike. The study reveals that various sectors, including finance, insurance, information technology, manufacturing, and healthcare, are likely to experience substantial productivity enhancements through AI integration.
With AI technology increasingly leaving its mark in diverse industries, it is apparent that AI is here to stay. As Federal Reserve governor Lisa Cook aptly pointed out, AI is not anticipated to displace central bankers in the near future. Embracing a human-centric approach and prioritising the development of AI tools that address tangible issues is pivotal in maximising the potential of AI technology.
In conclusion, the business rationale for investing in AI has become increasingly persuasive, holding the potential to reshape industries and facilitate substantial growth. CFOs must take proactive measures in clearly communicating the benefits and potential risks associated with AI technology to guarantee its successful adoption and integration within their organisations.