Medium-long term: AI and implications for CFOs
CFOs discussed the opportunities and challenges associated with artificial intelligence (AI), particularly generative AI, which can generate tailored content (from business plans to investment policies). The discussion highlighted the need for action to implement AI strategies and adapt to technological discontinuities. The main challenges and opportunities raised include:
Blockchain vs. AI
Unlike blockchain, which was seen as a technology seeking use cases, AI, particularly generative AI, was seen as a transformative technology with substantial applications. AI research is consistent because it reveals three things. First, the productivity gains are significant. Second, they are implemented quickly. Third, it is the least skilled and least experienced people who benefit the most from these technologies. While blockchain has had a negative ROI for many CFOs, AI holds much greater potential.
AI is a priority for most boards and investors
CEOs, CTOs and investors asked organizations and CFOs how they would transform their institutions with AI. One CFO admitted that just a year ago, only one question was raised about AI during the quarterly investor call. Just three months later, the number of questions increased to 50. These days, every CFO should have an innovation and AI strategy.
Risks of Implementing AI
When we talk about generative AI, the room is often divided between pessimists and optimists. When such disruptive technology emerges, the companies that are the first to adopt it are usually not the same ones that lead in the end. Concerns have been raised about the pricing of AI products and the difficulty of determining input-output relationships, even though we know this is net positive and margin-enhancing.
AI regulation in Europe
The real risk of regulation is to stifle innovation. The impact of GDPR privacy laws on innovation is a point of contention. While some argue that regulation has significantly hindered innovation, others say research indicates only marginal impacts. Critics point out that social media and algorithms still collect a lot of data about individuals, regardless of GDPR compliance. The effectiveness and true influence of GDPR on innovation remains questionable. AI regulation must strike a balance, without taking away innovation, and, at the same time, it must find a way to protect humanity. CFOs need to consider AI just as they consider ESG regulations.
