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There is now no doubt that CFOs view artificial intelligence technologies as a key driver of financial transformation. In a new study of 400 senior financial executives around the world, 78% said they want to increase their investments in AI over the next 12 to 18 months.

At the same time, financial leaders are not infinitely patient about the outcome of a new AI effort. About half (48%) of respondents said that if an investment in AI does not generate a measurable ROI within a year, it would be difficult to justify additional investment.

In the study, conducted by marketing and research firm FT Longitude and published by Basware, a provider of AI-powered accounts payable software, more than three-quarters (76%) of respondents said they had reduced their operational costs since AI implementation.

In fact, financial executives have cited cost reduction as the primary goal of transforming finance through investment in advanced technologies such as AI. More than half (55%) said this goal was among their top three goals for financial transformation, and 32% said it was their top goal.

The next goal on the list was “driving AI innovation and harnessing emerging technologies,” selected as one of the top three goals by 45% of respondents.

Seven in ten finance leaders said their staff wanted AI support for administrative tasks, while 75% said AI allowed their staff to focus on more strategic activities.

However, at the same time, many CFOs face obstacles in realizing their vision of AI success. Two in five (40%) are concerned about not having the change management capabilities needed to execute complex transformation projects, and 33% are concerned about a lack of capital.

Other common barriers include lack of a clear strategic vision for the future of the finance function, difficulty proving ROI on transformation initiatives, legacy systems that no longer meet requirements, and regulatory challenges and compliance.

Companies’ pragmatic position that they cannot justify continued investment in an AI effort that does not generate an initial ROI requires them to seriously consider how to measure the financial impact of such an investment.

The good news is that finance leaders know how to prioritize investment use cases, estimate costs and monitor investment returns, the survey report suggests. Once they have transparently proven the return on investment, it will be less difficult to justify additional investment – ​​potentially in more ambitious AI projects – writes Basware.

So far, the ROI of AI initiatives is most proven in the areas of financial planning and analysis, accounts payable and accounts receivable, according to Basware.

“There’s so much buzz around AI right now that people think it’s new, but in reality it’s been around for years, with use cases built into software that can add business value. different ways,” said Jason Kurtz, Basware’s chief financial officer.