It’s no secret that artificial intelligence can deliver internal benefits such as increased automation, enhanced business processes and greater insights from data.
But companies can also leverage their internal knowledge of AI and the tools they are using to generate income and find new opportunities for business growth. And the good news is this can apply to virtually any type of business.
“It’s a common misconception that only technology companies can profit from cutting-edge innovations like generative AI,” said Nate Suda, senior director analyst at research firm Gartner. “This is a myth that needs to be dispelled.”
Turning AI into a revenue generator is not necessarily easy, though, especially given that the emergence of AI-powered business use cases is relatively new for many. CFOs can play a big role in helping their organizations monetize AI and the following are some tips for ensuring success.
Demonstrate value
To create AI-based solutions that are viable in the market, companies have to show prospective customers how they will benefit from using these offerings. CFOs need to work with fellow senior executives, including those directly overseeing product development efforts, to get a sense of why AI-powered solutions are valuable for clients.
“Understanding and addressing customer needs is fundamental,” said Anthony Lam, CFO at healthcare technology company Healwell AI. “CFOs should ensure the AI product or service being developed addresses a specific problem and delivers clear value.”
Early validation through focus groups or market research can prevent the development of products that lack customer interest, Lam said. “Prioritizing customer needs and demonstrating tangible value are crucial for successful monetization,” he said.
Focus on generative AI
Generative AI “is a profit catalyst, much like the steam engine was during the Industrial Revolution,” Suda said. “The companies that prospered then weren’t just those building engines, but those integrating the steam engine into their operations, using it to fuel unprecedented growth. Similarly, [generative AI] is the steam engine for the mind — unlocking creativity, amplifying productivity and fueling learning across every sector.”
CFOs must shift the conversation from how technology can generate digital revenue to how GenAI can increase the probability of success for the core business, Suda said. “When posed this way, CFOs have a pivotal role in unlocking revenue from generative AI for non-tech companies,” he said.
“Prioritizing customer needs and demonstrating tangible value are crucial for successful monetization.”
Anthony Lam
CFO, Healwell AI
For organizations to successfully monetize GenAI, CFOs need to focus on these key actions, Suda said, including managing the unique cost structures of GenAI by developing cost models that account for these drivers; aligning AI business use cases with strategic financial goals and targeting the most promising, high-value opportunities for AI monetization.
Understand costs
To calculate the return on investment in AI-based products and services, companies need to understand the development costs.
“AI solutions can be expensive to develop,” Lam said. They often rely on foundation models (FMs) — machine learning or deep learning models that are trained on broad data to be applied across a range of use cases. And these FMs require extensive data processing capabilities, he said.
“Costs associated with data acquisition, cleaning, licensing, AI engineering talent and computing resources — both cloud-based and on-premises — can be substantial,” Lam said. “CFOs must carefully assess these costs and plan how to amortize them over revenue streams to achieve a favorable return on investment.”
Determine pricing
Another key part of the ROI equation is determining how to price AI solutions. Pricing strategies should reflect several factors, Lam said.
One is the market segment. Pricing will vary depending on whether the target market is small, mid-sized, or enterprise clients, Lam said. “CFOs need to balance the trade-off between gaining market share with lower prices and maximizing revenue with higher prices,” he said.
Another factor is the pricing metric. “The pricing model, fixed monthly fees vs. volume-based charges, should align with customer preferences and usage patterns,” Lam said. “Effective pricing is essential for a successful AI product or service launch, and CFOs play a vital role in setting pricing strategies that meet organizational objectives.”
Enhance sales and customer retention
Another way companies can boost their finances via AI technology is by taking advantage of new market opportunities and improving customer experiences for better retention. AI and data analytics “can transform both sales and customer success by delivering real-time insights and automating key processes,” said Kevin Rhodes, executive vice president and CFO at Extreme Networks, a provider of network technology.
“In sales, predictive analytics help teams forecast customer behavior, allowing them to focus on leads with the highest potential for conversion,” Rhodes said. “For customer success, AI-powered tools can identify patterns in customer usage and engagement, enabling proactive outreach to address issues and boost satisfaction.”
Data-driven insights enhance both sales pitches and customer interactions, making them more personalized and effective, Rhodes said.
“The strategic use of AI empowers finance leaders to take on a more dynamic role, contributing not only to cost management but also to top-line growth.”
Kevin Rhodes
CFO, Extreme Networks
“By automating administrative tasks like CRM [customer relationship management] updates, scheduling and reporting, AI frees up time for teams to focus on building relationships and driving long-term value,” Rhodes said. “This leads to greater efficiency, improved customer retention and better overall performance across both functions.”
Identify business trends
Traditionally seen as the guardians of an organization’s financial health, CFOs are now expected to step out of their conventional roles and take on a more strategic role within the C-suite, Rhodes said.
“This evolution is largely driven by AI and the power of data analytics to help influence business strategy, which is becoming more and more of a CFO responsibility,” Rhodes said.
One of the most obvious recent examples is the COVID-19 pandemic, which hugely impacted supply chain planning, Rhodes said. “While there’s no way to predict something like a pandemic, leveraging AI-driven, real-time data can significantly help when adjusting strategies to minimize the impact of something like a supply chain disruption,” said Rhodes.
By leveraging AI’s ability to deliver actionable insights on market trends, CFOs can unlock new growth avenues for their companies. “The strategic use of AI empowers finance leaders to take on a more dynamic role, contributing not only to cost management but also to top-line growth,” Rhodes said
