While CIOs and CEOs make significant digital decisions, a question arises about the authority on AI-related strategies. Since chief financial officers (CFOs) head the financial aspects of all projects, they should be responsible for such decision-making. More C-suite executives should join in the process and play their part in the organizational restructuring. In this article at MIT Sloan Review, Thomas H. Davenport and Beena Ammanath help decide the decision-maker of AI-related strategies.
Deciding the AI-Related Strategies
CFOs are the strongest contenders in claiming authority on AI-related strategies so far. 24 percent of the financial leaders use the technology daily, and 50 percent would leverage it soon. A recent survey conveyed that 28 percent of CIOs report to CFOs. Additionally, IT is the sector where organizations are most likely to implement artificial intelligence. Let’s find out the opportunities in the financial spectrum:
Robotic process automation would be beneficial at the end of a financial quarter. People usually have to extract critical information from various sources, arrange, and record all the transactions. Companies then use these reports to share insights with internal and external stakeholders. The processes of tax calculation, auditing, and compliance management need a structured approach that AI can offer. Also, 37 percent of the respondents want to use AI for risk management and 29 percent for application feasibility.
A 2020 enterprise AI survey reported that 62 percent of the participants think AI can increase cybersecurity issues. However, organizations can use the same tool for ‘spend classifications, supplier risk assessments, automated contract reviews, and chatbots for routine supply ordering’.
Though companies have spent $20 million on AI-related strategies, 71 percent of the respondents want to invest more in the coming years. 81 percent of early adopters have got ROIs within two years, i.e., before their payback timeline.
Strategies for AI Profits
- Gather knowledge and demonstrate how emerging technologies align with corporate goals to inspire other leaders.
- Learn from other companies with similar functions and prefer those for business partnerships.
- The CFOs should be the executive sponsor to supervise the ROIs from the projects.
- Have a centralized team with AI expertise.
- Create centers of learning for employees to enhance their knowledge of emerging tools.
To view the original article in full, visit the following link: https://sloanreview.mit.edu/article/redefining-ai-leadership-in-the-c-suite/