CFOs Confident, Yet Cautious: AI & Efficiency Take Center Stage

CFOs Gain Confidence, Lower Expectations: A Mixed Economic OutlookChief Financial Officers (CFOs) are increasingly optimistic about taking on more risk, with nearly six in ten now considering it a good time. This shift from a more cautious stance in the previous quarters is evident in a recent survey of 200 CFOs from companies with at least one billion dollars in annual revenue across the US, Canada, and Mexico.However, this newfound confidence is not without caution. CFOs have slightly lowered their expectations for key business metrics such as revenues, earnings, dividends, capital allocation, and both domestic hiring and wages. This suggests a potential future where customer demand might not meet their expectations, creating a complex economic picture.The economy and inflation were identified as top external risks by over half of the CFOs surveyed. Internally, managing costs and improving efficiency and productivity were major concerns, even surpassing talent issues. This shift indicates a focus on maximizing the potential of existing technology and employees, rather than just hiring new talent.Artificial Intelligence (AI) plays a significant role in this efficiency drive. Most CFOs have implemented some form of AI, but only a fraction have seen clear, measurable value or fully integrated it into their finance operations. This means finance leaders must now demonstrate tangible results from their AI investments.Despite navigating another year of constant change, CFOs have earned high marks for their ability to manage uncertainty. As they look ahead, it will be interesting to see how they continue to manage this ongoing complexity in the coming year.The Daily News Now! — Every city. Every story. AI-powered. Hosted on Acast. See acast.com/privacy for more information.