CFOs as drivers of AI-driven transformation

As businesses grapple with the rapid evolution of technology, the role of chief financial officers (CFOs) is becoming increasingly pivotal in steering organisations through the complexities of AI-driven transformation.

A Boston Consulting Group study of 240 CxOs from Southeast Asia revealed that Asia is racing to adopt generative AI at a pace surpassing other regions.

BCG says the companies gaining value in APAC's GenAI surge have much in common: CEOs who champion the technology, strong links between artificial intelligence (AI) and business objectives, and plans to invest in AI over the next several years. BCG concluded, "If 2023 and 2024 were Asia's POC phase, 2025 is the year to scale."

CFOs are interested in seeing how AI will accelerate transformation through cost optimisation, process automation, and real-time strategic decision-making. The challenges for many will be ensuring ROI, managing cybersecurity risks, and bridging the expertise gap.

A new transformation paradigm uniquely 2025

The landscape of transformation initiatives in 2025 is markedly different. According to BCG, "if 2023 and 2024 were Asia's proof-of-concept phase, 2025 is the year to scale." This shift signifies a transition from experimentation to full-scale implementation.

Amit Suxena, head of Asia at Oracle NetSuite, emphasises this: "Organisations are moving beyond pilot projects to integrate AI into their core business functions. The focus is now on scaling successful initiatives."

In this new phase, CFOs are critical in championing AI-driven initiatives, aligning them with business objectives, and ensuring sustainable investment.

The emphasis is on linking AI capabilities directly to measurable outcomes, a strategy that Suxena describes as "essential for demonstrating value and justifying ongoing investment."

Lessons from past initiatives

The journey towards AI adoption is fraught with challenges, and lessons can be gleaned from successful and failed initiatives. BCG's research highlights that successful companies share common traits: visionary leadership, strategic alignment, and a commitment to long-term investment in AI capabilities.

"Failure often occurs when there is a disconnect between AI initiatives and the overall business strategy. To avoid these pitfalls, CFOs must ensure that AI aligns with their company's goals." Amit Suxena

Conversely, organisations that have faltered in their AI efforts frequently cite a lack of clear objectives and insufficient stakeholder engagement as key reasons for their struggles. "Engagement at all levels, especially from the CEO and CFO, is crucial. It's not just about technology; it's about fostering a culture that embraces change," says Suxena.

Ensuring alignment and ROI

For CFOs, the challenge lies in ensuring that AI investments align with the company's evolving business strategy and deliver a robust return on investment (ROI). BCG's findings indicate that over 90% of companies plan to scale AI over the next two years, focusing significantly on cost optimisation and process automation.

Suxena advises, "CFOs should implement a framework for evaluating AI projects based on their potential impact on the bottom line. Establishing clear KPIs and tracking progress is vital."

Moreover, CFOs must navigate the complexities of managing cybersecurity risks associated with AI deployment. He highlights the importance of "incorporating robust cybersecurity measures into AI initiatives from the outset. This not only protects sensitive data but also builds trust with stakeholders."

Measuring success

Measuring the success of AI-driven digital transformation initiatives is essential for continuous improvement. Suxena states, "Success should be measured in financial terms and how well AI enhances decision-making processes and operational efficiency."

Key performance indicators (KPIs) should focus on metrics such as time-to-market for new products, customer satisfaction scores, and cost savings achieved through automation.

BCG's survey reveals that companies effectively leveraging AI are experiencing a 25% reduction in time to market. This statistic underscores the importance of measuring outcomes beyond traditional financial metrics to capture the full impact of AI initiatives.

The WEF report, Global Risks Report 2025 shows that a majority of respondents anticipate an unsettled global outlook over the short term. This caution suggests that CFOs need to adopt a dynamic approach to measuring and adjusting AI initiatives based on real-time data and evolving market conditions.

Navigating geo-economic uncertainties

The ongoing geo-economic uncertainties of 2025 present both challenges and opportunities for CFOs. Suxena advises CFOs to adopt a proactive approach:

"In times of uncertainty, agility is key. CFOs must build flexibility into their financial strategies to respond quickly to changing market conditions." Amit Suxena

Additionally, engaging with technology partners can provide CFOs with the necessary insights and resources to maximise their AI investments. "Collaboration with tech firms can accelerate the learning curve and help organisations leverage best practices in AI implementation," opines Suxena.

The WEF report highlights the rising tensions related to economic downturns and geopolitical confrontations. It warns that “if the coming months see a spiral of tariffs and other trade-restricting measures globally, the economic consequences could be significant.” This indicates that CFOs must be prepared for rapid shifts in the economic landscape that could impact their AI investments.

What's in store in 2025

As AI adoption accelerates, CFOs are uniquely positioned to drive transformation initiatives that align with their organisations' strategic objectives. By learning from past experiences, ensuring alignment between AI projects and business goals, and measuring success through comprehensive KPIs, CFOs can lead their organisations into a future where AI is integral to operational success.

"CFOs must embrace their role as strategic partners in the AI journey, ensuring that technology serves the organisation's broader mission," concludes Suxena.

Click on the video interview with Suxena to hear the context of his responses on the topic of CFOs as drivers of AI-driven transformation.