Economic Uncertainties Move CFOs From Documenters to AI-Powered Decision-Makers

The modern chief financial officer looks a little more modern every day.

Having emerged almost fully from the back office, finance functions and their CFO leaders are increasingly turned to as a single source of company-wide truth amid the unpredictable realities of today’s dynamic and unrelenting macro environment.

“The CFO role has evolved from being a historian, looking at and delivering reports that are dated, to becoming a strategic partner in decision-making and not just documenting that decision-making,” Brian Unruh, CFO at global AI company ABBYY, told PYMNTS for the series “A Day In The Life of a CFO.”

This evolution has been driven by advancements in technology, changing market dynamics, and an increasing need for sustainable growth.

“The finance department exists to fuel decision frameworks,” said Unruh, noting that the “timely, accurate, and multidimensional data” finance teams provide daily to the rest of the business is ultimately what helps define and accelerate internal growth drivers.

After all, financial planning and analysis (FP&A) involves setting a strategic path for the year and continuously realigning resources and processes in response to new market dynamics — something that remains at the heart of CFO responsibilities.

Unruh added that capital allocation is a close priority after FP&A, especially in growth companies where investment decisions are crucial.

Today’s CFOs are becoming increasingly integral to operational decision-making processes, providing timely and accurate data that fuels business strategy — and they are being helped in this evolution by technological advancements, particularly in artificial intelligence (AI) and data analytics. These tools enable CFOs to gain real-time insights into various aspects of the business, from customer health to operational efficiencies.

“Technology, especially AI, has accelerated the success of finance teams by providing real-time access to data and insights,” Unruh said. “This allows us to proactively address issues before they become significant problems, rather than just reporting on them after the fact.”

For example, AI can analyze customer behavior to predict potential churn, allowing the finance team to take preemptive measures. Similarly, AI-driven analytics can identify bottlenecks in processes like sales enablement and cash collection, helping to streamline operations and improve cash flow.

A crucial aspect of leveraging technology effectively is the integration of data across the organization. “In the past, decision-making was very siloed, with different departments focusing on their specific metrics,” said Unruh. “Now, we use a more holistic approach, looking at the entire value chain to understand how different areas impact each other … Having a unified data structure ensures that everyone is speaking the same language and making decisions based on the same information.”

The shift toward integrated data and real-time insights has also improved communication and collaboration across the executive leadership team.

“With modern solutions providing increased visibility, it’s easier for different departments to align on financial performance and strategy,” Unruh said. This alignment is critical in dynamic environments where quick, informed decisions are essential — and the finance team’s ability to provide deep-dive analyses also puts pressure on IT departments to support robust business intelligence strategies.

The transforming role of the CFO is being marked by a shift from traditional financial stewardship to becoming a central figure in strategic decision-making. And the changing role of the CFO has also redefined what a high-performing finance team looks like.

The ability to innovate and implement changes quickly is increasingly critical. Unruh emphasized the importance of nurturing talent that excels in identification, innovation and implementation. “Everyone is good at one of these, some are good at two, and a few excel at all three. These are the people you need to nurture within your organization,” he said.

Looking ahead, the role of the CFO will continue to evolve, with a greater emphasis on strategic vision and operational leadership. “The totality of accounting and finance is becoming more integrated into the strategic vision of the company,” Unruh said. “The finance team is now expected to provide insights that not only reflect where we’ve been but also predict where we’re going.”

To stay ahead, CFOs must prioritize professional development and build strong relationships with leaders across product, technology, and sales functions. “Understanding the frontline challenges and staying abreast of external trends are critical,” Unruh said.

The post Economic Uncertainties Move CFOs From Documenters to AI-Powered Decision-Makers appeared first on PYMNTS.com.