Given the dynamic nature of today’s operating environment, CFOs are faced with a myriad of challenges and decisions to make on behalf of their organizations. There are financial complexities and decisions related to technology transformations to contend with.

As the CFO role swiftly evolves beyond traditional financial oversight to become architects of financial innovation, they find themselves at a critical juncture. A recent survey by the CNBC Technology Executive Council demonstrates that nearly half of companies (47 percent) say that AI is their top priority for tech spending over the next year, and AI budgets are more than double the second-biggest spending area in tech, cloud computing.

Cyber criminals operate in a global environment, and they are taking their best practices and financial motivation to a new level with staggering success rates.

With AI budgets overshadowing other tech spending areas, CFOs are under pressure to ensure their organizations harness AI in the right way. Navigating this new landscape demands a new approach. And knowing what questions to ask along the journey toward long-term financial health is key.

Below are the six questions every CFO must ask to optimize operations, mitigate risks, maximize ROI and more.

1. How do we Streamline Transaction Processing?

Many businesses contend with a high level of transactions, which can be overwhelming for accounts payable (AP) teams and an ecosystem of requesters, approvers and suppliers. CFOs must sponsor the deployment of solutions that can process transactions accurately with minimal human touch and, where required, efficiently workflow tasks so payments can be made quickly.

Here, AI emerges as a transformative force, offering intelligent solutions to streamline transaction processing. By leveraging AI-powered platforms, CFOs can revolutionize AP operations, automating repetitive tasks, detecting anomalies and optimizing workflows. This not only enhances accuracy and efficiency, but also frees up valuable time for finance teams to focus on strategic initiatives.

2. How do we Reduce Operational Costs?

Operational costs can take off, particularly when relying on human teams to address workload requirements. CFOs must explore how technology can reduce these costs. For instance, at SpendConsole, we’re seeing our AI-powered platform improve payables productivity by nearly 75 percent, driving better resource allocation and cost savings.

3. How can we Boost Cybersecurity?

Cyber criminals operate in a global environment, and they are taking their best practices and financial motivation to a new level with staggering success rates. A quick Google search yields thousands, if not tens of thousands results, demonstrating how real the threat of fraud is. And the hard truth? Almost every cybersecurity issue (95 percent) can be traced to human error, according to the World Economic Forum.

With AI budgets overshadowing other tech spending areas, CFOs are under pressure to ensure their organizations harness AI in the right way.

By harnessing the power of AI and automation, CFOs are given a strategic approach to mitigate risks associated with manual data entry, minimizing human error and fostering a safer, more streamlined AP process. Furthermore, integrating real-time insights and robust compliance management solutions can shield businesses from financial losses while upholding the integrity of their financial operations.

4. Can Our AI Technology Adapt to Future Changes?

Companies don’t operate in a vacuum of technology investment. Instead, many have an IT roadmap with anywhere from a three to five-year view. This is why it’s crucial that CFOs collaborate with Chief Information Officers (CIOs) and transformation teams to re-assess whether prior decisions are taking advantage of recent developments in AI.

AI is evolving at a rapid pace. CFOs must ask themselves if their current investments and roadmaps are poised to capitalize on emerging opportunities and drive sustainable growth. The systems they have in place must meet not only current needs, but be flexible enough to handle whatever the future brings.

To this, CFOs would benefit by seeking out a partner that listens to their needs and drives outcomes – not one that simply provides the software and walks away.

5. How can we Improve our Supplier Relationships?

Improving supplier relationships and their management is paramount for CFOs aiming to optimize procurement processes and drive organizational success. Frictionless supplier management serves as a cornerstone for smooth operations, enabling seamless transactions and fostering mutually beneficial partnerships.

Recognizing the pivotal role of technology in modernizing supplier interactions, CFOs should proactively evaluate and implement digital solutions to enhance communication and collaboration with suppliers.

By leveraging technology platforms specifically designed for supplier management, various aspects of the procurement process, from sourcing to invoicing, can be streamlined. These platforms offer centralized communication channels, enabling real-time exchange of information and documentation between finance teams and suppliers.

Additionally, features such as automated order processing, electronic invoicing and supply chain visibility enhance efficiency and reduce administrative burden.

6. What is the Long-Term ROI of our Investments in Technology?

Lastly, and unsurprisingly, CFOs should evaluate the long-term return on investment for any technology solution. They should confirm if their potential supplier will commit to standing behind the delivery of the outcomes proposed in the business case.

It’s important to not only consider the short-term benefits but the long-term outcomes, such as cost savings, improved cycle times and better decision support capabilities as well.

By asking the right questions and embracing AI-driven solutions, CFOs can unlock new opportunities for growth and innovation.

As noted by McKinsey & Company: “AI holds the potential to be a revolutionary technology, but it doesn’t change foundational principles of finance and economics: a company must generate a return above its cost of capital.”

By asking the right questions and embracing AI-driven solutions, CFOs can not only drive efficiencies and mitigate risks but also unlock new opportunities for growth and innovation.