Artificial intelligence (AI) is not just reshaping industries—it’s redefining how businesses operate at their core. For CFOs, AI presents both an opportunity and a challenge: how to harness its potential to drive measurable business value while ensuring ethical governance, financial discipline, and strategic alignment.
I recently spoke with Monica Proothi, a leading expert in finance transformation at IBM Consulting, about the evolving role of CFOs in the AI era. Our conversation touched on the biggest obstacles to maximizing AI’s return on investment (ROI), the importance of governance and ethical AI, and how CFOs can use AI to enhance—not replace—human judgment.
Overcoming AI Adoption Challenges: Workforce, Culture, and Governance
AI’s success is not just about the technology—it’s about people. According to Monica, one of the biggest obstacles organizations face in realizing AI’s full potential is adoption and integration into daily workflows.
“AI stickiness is key,” she explains. “The challenge isn’t just about getting the technology in place—it’s about making it easy to use, embedding it naturally into how people work, and ensuring it is trusted.”
Governance plays a crucial role in AI adoption. “What a company can do with AI is largely determined by how it selects, governs, and applies data across the enterprise,” Monica says. “CFOs need to integrate data governance into every stage of AI development to ensure systems are not only effective but also ethical and transparent.”
Balancing Ethics and Governance in AI
Many CFOs are more concerned about the ethics of AI than its governance. Monica highlights the importance of bias-free data and strong governance frameworks to maintain trust.
“AI is only as good as the data it’s trained on,” she says. “To ensure AI-generated insights are reliable, organizations must prioritize data governance, transparency, and accountability. Governance and ethics are intertwined—strong governance prevents bias, promotes trust, and ensures AI is used responsibly.”
AI’s Role in CFO-CEO Collaboration
AI is reshaping leadership dynamics at the highest levels, fostering closer collaboration between CFOs, CEOs, and the entire C-Suite.
“Leaders are inundated with responsibilities every day, making it easy to lose sight of human connection,” Monica explains. “AI can automate routine tasks, freeing teams to focus on strategic thinking and cross-functional collaboration.”
One area where AI is already making a difference is in financial reporting. Instead of spending hours compiling data from multiple sources, CFOs can use generative AI to analyze trends and generate reports, enabling them to spend more time working with the CEO and business leaders to turn insights into actionable strategies.
IBM’s Approach: AI-Driven Forecasting
IBM has applied AI to transform financial forecasting, a traditionally manual and time-consuming process.
“The key to making AI work is organizing and standardizing data across the company,” Monica says. “At IBM, we’ve established strong data governance, which has allowed us to implement touchless forecasting with 97% accuracy. The result is faster, more precise financial insights that support smarter decision-making.”
AI Investments: Balancing Short- and Long-Term Value
CFOs must take a balanced approach when investing in AI—spreading investments across short-, medium-, and long-term horizons.
“AI isn’t just about quick wins; it’s about building for sustained success,” Monica says. “That’s why it’s crucial for CFOs to get involved early in IT planning, work with cross-functional teams, and align technology investments to quantifiable business outcomes.”
Instead of viewing AI as just a cost-cutting tool, Monica emphasizes its ability to drive efficiency and growth simultaneously. “CFOs should see AI as an enabler of long-term innovation—through repeatable and scalable assets—rather than just a means to reduce expenses.”
Reskilling and the Future of Finance Talent
As AI automates more traditional finance and accounting tasks, CFOs must focus on reskilling their teams to remain competitive.
“The finance function is evolving beyond transaction processing to one of strategic advisory,” Monica says. “CFOs need teams with a technology-forward mindset, blending financial expertise with data science and AI literacy.”
IBM has embraced this shift by upskilling finance professionals within its own organization, training employees in AI and embedding data scientists within finance teams.
Winning the War for Talent
In a competitive talent market, CFOs must position their organizations as AI-driven and digitally savvy to attract top talent, especially from younger generations.
“The war for talent isn’t going away anytime soon,” Monica says. “To stand out, companies need a clear AI strategy and a culture of digital innovation. Younger professionals want to work for organizations that embrace new technologies and offer career paths that evolve alongside AI advancements.”
She also notes that while unicorn candidates—those who excel in finance, accounting, and technology—are rare, companies can build high-performing teams by diversifying skill sets across finance, tech, and data analytics.
Cybersecurity and Data Privacy: The Reluctance to Adopt AI
Despite AI’s potential, CFOs remain cautious due to cybersecurity and data privacy concerns.
“CFOs recognize that AI presents a once-in-a-career strategic opportunity, but they’re also aware that a single cyber breach can erase all of AI’s benefits,” Monica says.
A recent IBM study found that 60% of CFOs and CROs say their approach to managing AI risks is either ad hoc or nonexistent.
To mitigate risks, organizations must treat data governance and cybersecurity as fundamental business imperatives, not afterthoughts. “Companies that manage data effectively and establish trusted governance realize nearly double the ROI from AI investments compared to those that don’t,” Monica says.
AI in Uncertain Economic Times
With ongoing economic uncertainty, companies must strike a balance between cost efficiency and innovation.
“AI isn’t just a tool for reducing expenses—it can also drive growth,” Monica explains. “By automating repetitive tasks, companies can reinvest the savings into innovation and position themselves for long-term success.”
A CFO’s Next Steps: Where to Begin
For CFOs wondering how to get started, Monica offers three key takeaways:
- Take bold steps – CFOs should start leveraging AI for high-impact areas like FP&A, forecasting, and cash flow optimization.
- Champion AI adoption – Cultivate a culture of innovation by encouraging teams to embrace AI as a strategic partner.
- Focus on governance and trust – Establish strong data governance and cybersecurity measures to ensure AI adoption is both ethical and effective.
As AI continues to redefine business, CFOs have a unique opportunity to lead digital transformation and shape the future of financial strategy. Those who take the initiative today will be best positioned to drive value, growth, and long-term success.