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Seven things CFOs need to know about AI

Authors

  • Juan Uro

    EY Americas Strategic Relationship Office Leader

  • Samir Jaipati

    EY Americas Finance Solution and Regional Go-to-Market Leader

3 minute read 04 Dec 2025
Related topics
CFO agenda

End-to-end process redesign, a holistic view of ROI, solid talent and data foundations, and strong governance are key to reaping AI value.

In brief
  • Many CFOs are driving AI adoption in finance and across the broader organization, but they may need to rethink traditional ways of measuring ROI.
  • Challenges related to talent shortages, system fragmentation and data quality often hinder AI implementation.
  • To embed AI into transformation strategies, CFOs can work with CIOs and others to optimize processes for AI, promote adoption and establish governance.

1. AI is a strategic capability — not just a tech investment

Global artificial intelligence (AI) spending is projected to reach $307b in 2025,¹ growing to $632b by 2028 (29% CAGR).¹ EY Tech Pulse data shows 43% of executives now allocate over half their AI budgets to agentic AI.¹ With so much investment at stake, CFOs should see AI as a key capability for value creation, productivity and transformation, not just a technology project.

2. End-to-end process transformation will drive greater productivity

AI copilots reduce manual work by 20% to 30%,² while autopilot systems automate workflows like order-to-cash with up to 90% efficiency.¹ Yet less than a third of companies follow AI adoption best practices.³ To maximize the benefits, instead of allowing stakeholders to work in silos, CFOs must encourage an AI-first approach to reimagining processes end to end. A focus on building data platforms is key, as is robust governance at all stages of the redesign process — from evaluating and prioritizing ideas, to setting up or leveraging the right data and architecture, to executing the project and monitoring progress. Throughout, it’s important to manage risk by maintaining proper controls and protecting confidential information.

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3. Regulatory complexity is rising

 

Regulators are increasingly adding more oversight and penalties. For example, the EU AI Act and US laws (CPRA, VCDPA and new 2025 rules) create compliance burdens across jurisdictions. India’s Digital Personal Data Protection Act (DPDPA) and China’s labelling mandates add further complexity. To meet compliance requirements and manage increasing risks, CFOs must take the lead on AI governance, data privacy and risk management. It’s also important to use advanced risk management processes and tools that enable end-to-end governance for AI systems, including policy management and risk tiering. AI-enabled tools to manage financial regulations, data privacy laws and sector-specific compliance requirements are also useful.

 

4. AI is transforming M&A — with measurable impact

 

Generative AI (GenAI) use in M&A is projected to grow from 16% in 2024 to 80% by 2028,⁴ with early adopters reporting up to 50% faster deal cycles.⁵ CFOs should integrate AI into screening, diligence and post-merger integration to accelerate execution and unlock synergies.

 

5. AI enhances reporting and analytics, including ESG reporting, but a clear data strategy is critical

 

AI is redefining how organizations collect and report information to stakeholders, including sustainability reporting. AI tools are also automating internal and external reporting, freeing up resources to apply insights rather than prepare reports. Fifty-seven percent of investors¹ say AI enhances ESG credibility; however, harnessing AI will require a clear data strategy and a platform that supports multiple functions across the enterprise.

 

6. ROI must be redefined beyond financial metrics 

 

Only 45% of executives can quantify AI ROI,³ and many fail to achieve ROI targets.³ Though this should not discourage AI investment, CFOs can better measure its impact using a holistic ROI framework that includes:

  • Hard factors: cost savings, productivity, revenue growth
  • Soft factors: retention, agility, brand value
  • Strategic impact: innovation, transformation, stakeholder trust

Real-world examples like the Financial Services Multi-Agent Collaboration and Conversational Bots demonstrate strong ROI from AI adoption, underscoring its potential to drive efficiency and growth.⁶

7. Talent gaps are slowing transformation 

Talent strategy is now central to AI success. However, 53% of CFOs cite retention as a top challenge,¹ and 71% say the workforce is underprepared for AI demands.⁷ CFOs must invest in AI-focused training, leverage HR analytics and collaborate with HR to build digitally capable finance teams.

Conclusion

AI is reshaping enterprises and the finance organizations within them. With global GenAI spending growing rapidly, leading companies are accelerating AI investments. Many AI use cases such as the Financial Services Multi-Agent Collaboration and Conversational Bots demonstrate strong ROI. To unlock this value, CFOs must take a proactive role, embedding AI into transformation efforts, leading governance across functions cand addressing talent gaps through targeted training. Success will depend on CFOs' ability to enable an enterprise-wide AI strategy, underpinned by a common data platform and effective risk management, that aligns AI investments with business goals.

Examples of AI-driven use cases for the Finance Function¹

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Services

Description

1

Smart Report

Automates financial narratives for reporting and disclosures

2

AI-Powered Reconciliation

Resolves data discrepancies across systems

3

Finance Chatbot (Quest)

Retrieves finance knowledge across structured/unstructured data

4

Data Modelling

Auto-generates reports with charts and narratives

5

Variance Analysis

Detects trends and anomalies in financial data

6

Invoice Processing

Automates invoice data extraction and ERP integration

7

ALFA – Forecasting Model

AI/ML-based FP&A model selection and scenario analysis

8

ESG Data Misalignments

Detects inconsistencies in ESG reporting

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Summary 

AI is revolutionizing finance, with global spending expected to hit $644b by 2025. CFOs must embed AI in transformation strategies, enhance governance and address talent shortages to drive long-term value and strategic growth.

About this article

Authors

  • Juan Uro
    EY Americas Strategic Relationship Office Leader
  • Samir Jaipati
    EY Americas Finance Solution and Regional Go-to-Market Leader
Related topics
CFO agenda

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