The Trial Balance is CFO’s weekly preview of stories, stats, and events to help you prepare.
Part 1: The need for CEO-CFO AI collaboration
The CEO-CFO relationship, which plays a key role in CFO job satisfaction and retention, is also now significant in the decision-making process around AI implementation. With cost-cutting and management being a priority for both CEOs and CFOs alike, how new technology can play a part in this goal is particularly intriguing for both executive and financial leaders.
Although some data shows boards may not be keen on implementing AI into the finance function, new data from IBM indicates that when CEOs give proper direction to their CFOs it not only plays an important role in the digital transformation process but helps eliminate revenue losses. IBM’s data in their CEO guide to generative AI: finance report found AI tools can help cut revenue losses by up to 70%.
Updating financial operations
For CEOs whose companies don’t have high-functioning FinOps functions, researchers are suggesting CEOs work with their CFOs in allocating toward AI-powered tools around the operational framework and technological infrastructure of the organization. These tools, according to the researchers, can help employees “cut to the chase” in their work.
For business leaders who are thinking about AI and employee productivity, IBM says AI tools can help increase staff time focused on the decision-making process and support by 90%. However, although this does help reduce revenue losses in these areas, they also admit that doing this at scale requires a significant amount of training for employees at all levels.
“Generative AI can only be as effective as the people using it,” researchers wrote. They instruct CEOs to develop at least one “finance-specific end-to-end use case” when getting started. Through this, leadership and finance teams alike can work with AI in a coordinated manner with small stakes and an open forum to learn.
Part 2: The week ahead
Here’s a list of important market events slated for the week ahead.
Tuesday, May 21
- Philadelphia Fed Non-Manufacturing Activity, May
Wednesday, May 22
- Existing home sales, April
- Fed’s May FOMC meeting minutes
- MBA mortgage applications
Thursday, May 23
- S&P Global US manufacturing PMI, May
- S&P Global US services PMI, May
- New home sales, April
Friday, May 24
- Durable goods orders, April
- University of Michigan Consumer Sentiment, May final
Part 3: Xactly’s CFO Jason Godley
Jason Godley, CFO at revenue intelligence and sales performance management solution provider Xactly, knows a lot about how companies handle change. In this week’s Q&A, Godley discusses navigating business uncertainty, why finance chiefs need to act as chameleons, and how he used to work on a cattle ranch. (5/23)
