Unlocking the Strategic Potential of Generative AI for Finance Executives

In the rapidly evolving landscape of technology, few innovations have captured the attention of industries worldwide like generative artificial intelligence (AI). As companies navigate the challenges of an uncertain economic climate, finance leaders are increasingly turning to this transformative technology to enhance their strategic decision-making and operational efficiency.

Empowering Finance Executives to Thrive in Uncertain Times

Generative AI's Growing Prominence in Finance Departments

The PYMNTS Intelligence research reveals a significant shift in how chief financial officers (CFOs) are leveraging generative AI. Contrary to its initial use for routine, low-impact tasks, this technology is now playing a more strategic role in finance departments. In June, the share of middle-market CFOs using generative AI for medium-impact activities surpassed the share using it for low-impact tasks for the first time since data collection began in March. This trend underscores the growing importance of generative AI in finance, with 45% of middle-market firms surveyed falling into the medium-impact group, up from 35% in March.The most common reported use of generative AI among CFOs was for data visualizations and reports, with more than 60% of respondents indicating their company's utilization of the technology in this manner. Additionally, CFOs are finding generative AI increasingly valuable for financial tasks, such as financial reporting, capital management, working capital optimization, treasury management, cost management, and strategic planning and decision support. The percentage of CFOs who consider generative AI important for these functions has risen significantly since March, highlighting the technology's expanding strategic role in finance.

CFOs' Optimistic Outlook on Generative AI's Impact

As CFOs integrate generative AI into their operations, their expectations for the technology's future impact have become increasingly positive. More than 98% of the CFOs surveyed by PYMNTS Intelligence predicted that generative AI would have a positive impact on their industry over the next three years, a significant increase from the 77% who expressed the same sentiment in March.CFOs' enthusiasm for generative AI's long-term potential has grown across various areas, including enhancing speed to market, improving the customer experience, facilitating new product innovation, and reducing operational errors. This optimism is further corroborated by research from McKinsey, which found that 71% of finance departments investing in generative AI tools have experienced increased worker productivity, and 54% have reported improved data-driven decision-making.

Navigating the Shifting Generative AI Landscape

As the generative AI landscape evolves, CFOs are closely monitoring the competitive landscape and its potential impact on their investments. While OpenAI's ChatGPT has become synonymous with generative AI, the market is witnessing the rise of various competitors, each vying for a share of the corporate contracts.PYMNTS Intelligence's findings indicate that the perception of OpenAI as the generative AI leader has declined, with only 20% of CFOs now viewing the company as such, down from 27% earlier this year. Conversely, Microsoft, Google, and Meta have gained ground in CFOs' perceptions, with Microsoft taking the second spot after OpenAI, as viewed by 18% of the surveyed CFOs.These shifts in the competitive landscape could present CFOs with more options to apply generative AI across different modalities and use cases, potentially enhancing the profitability of their investments. As the industry continues to evolve, finance leaders will need to stay vigilant, evaluate the strengths and weaknesses of various generative AI providers, and strategically align their investments to maximize the technology's impact on their organizations.