Coupa's annual Strategic CFO survey reveals
growing tension of driving growth opportunities amidst AI's
potential and disaggregated data issues
FOSTER CITY, Calif.,
April 3,
2024 /PRNewswire/ -- Despite nearly half of CFOs
(45%) saying they plan to invest in AI to drive growth this year,
nearly double (89%) have doubts about their company's ability to
successfully implement an AI strategy.
CFOs have had to make tough choices in the last year and a new
global CFO survey from Coupa finds that many are still wrestling
with economic uncertainty and complexity as they look to the
future. Nearly all (90%) remain concerned about hitting growth and
revenue targets within the next 6-12 months – unchanged from last
year – specifying that high interest rates, rising energy
prices, and supply chain disruptions are among the greatest
external threats to their business. In addition, two in five CFOs
(39%) say their biggest obstacle is keeping up with AI advancements
as the rate of innovation outpaces human scale and traditional
process efficiency.
CFOs are AI Hungry, but Hesitant
CFOs are grappling
with a contradicting reality. They're eager to use AI, but don't
trust it and don't want to risk infringing on strict privacy laws.
Yet, they're captivated by AI's potential to transform their
operations for the better.
CFOs see AI's value to cut costs, increase productivity, and
grow efficiency. Specifically, they're keen to make AI investments
in the following areas this year: AP automation (34%), procurement
(31%), third-party risk management (29%), and contract management
(28%).
They're also planning on investing in generative AI (GenAI)
solutions to improve: fraud detection (37%), workflow
process optimization (36%), supplier evaluation (35%), and contract
development (32%).
Successful AI adoption requires cross-functional collaboration,
responsible deployment, and access to the best data. CFOs play a
pivotal role in fostering a culture of accountability,
transparency, and ethical decision-making to navigate AI's
complexities, while unlocking its full potential for competitive
advantage.
Blinded by Data Challenges and Paralyzed by Legacy
Systems
CFOs, who are expected to be the stewards of
financial clarity, are being blinded by the very data that's
supposed to empower them.
Nearly one in two (46%) say they lack full visibility into
financial data across the company. Nearly half (45%) say they need
to log into multiple systems to access all of their company's spend
data. Even worse, 22% say it takes multiple days across systems to
access it and 40% say their financial data is often outdated.
"In today's digital supply economy, the volume and complexity of
financial data continues to grow exponentially. Without the right
platform and technologies, viewing this data and extracting
meaningful insights in a timely manner remains a significant
challenge that can be detrimental to an organization's
performance," said Kevin Burns,
Coupa CFO. "Given the complexity of the macroeconomic climate and
today's dynamic and uncertain supplier relationships, it's critical
CFOs embrace AI-driven analytics to respond faster to disruption,
uncover opportunities, and use data and AI to increase operating
leverage for their business. That's how strategic CFOs will ensure
they're making the most informed, profitable decisions to fuel
their organization's growth amidst a continuously changing
environment."
Compounding Complexities Escalate Risk Management
A
significant lack of confidence exists about the ability to maintain
compliance standards, across several regulatory aspects. More than
a third of CFOs said data protection (36%), financial regulations
(35%), and cybersecurity compliance (34%) cause them the most
concern.
These doubts are compounded by the constantly evolving
regulatory landscape, with new compliance requirements such as the
SEC climate disclosure rule, UK SOX compliance, and e-invoicing
mandates across Europe. Failing to
comply leaves a company vulnerable to risks and data breaches and
can destroy business reputations.
CFOs see AI as a potential solution to compliance risks and
challenges and nearly one in three (28%) are specifically planning
to invest in AI for regulatory compliance.
"To keep up with the dynamic regulatory landscape, CFOs must be
proactive in mitigating fraud risks and managing
compliance challenges. It's crucial that CFOs prioritize AI-driven
solutions to gain the agility and precision needed to stay
compliant and steer around risk while managing capital for durable
growth. Embracing these technologies isn't just about driving
efficiency; it's about safeguarding your organization's reputation
and long-term viability," said Burns.
Read the full Coupa Clarity report: The Strategic CFO:
Rebuilding Confidence and Unlocking the Potential of AI
Methodology
Coupa Clarity reports provide unique data
and insights to help business leaders make smarter decisions to
fuel growth, drive efficiency and productivity, and improve
performance. This survey was conducted among 500 CFOs and finance
leaders in the US, UK, Ireland,
France, and Germany. The survey was carried out online
with an email invitation between November and December 2023 by Wakefield Research on behalf of
Coupa.
About Coupa
Coupa makes companies operate smarter and
grow faster. Our leading AI-driven platform connects and optimizes
sourcing, purchasing, supply chains, and financial management. More
than 3,000 global organizations large and small trust Coupa to
transform operating margins, increase efficiencies and growth,
optimize cash, and reduce risk. Learn more at coupa.com and follow
us on LinkedIn and X (Twitter).
View original content to download
multimedia:https://www.prnewswire.com/news-releases/cfos-view-ai-as-a-means-to-drive-growth-but-uncertain-on-where-to-begin-302106409.html
SOURCE Coupa Software