CFOs need to help keep visionary CEOs and other ambitious executives grounded. That means ensuring that any investment in new technology produces results that justify the price tag, regardless of perceived utility. Effective CFOs want to cut through all the hype around generative artificial intelligence (GenAI) and see exactly how the technology works in practice, not just hypothetically.
For “Most CFOs See Limited ROI from GenAI, But Are Increasing Their Investment” PYMNTS Intelligence asked 60 mid-market CFOs how their companies view and use GenAI, particularly in the context of cybersecurity, fraud and risk management.
CFOs don’t necessarily run IT departments, but they approve spending and monitor financial results. That gives them direct influence over how their company approaches new technologies and which innovations get the green light.
CFOs Look to GenAI to Fight Hackers, Fraudsters
GenAI is rapidly transforming the way mid-market companies approach cybersecurity and fraud and risk management. The technology has an unprecedented superhuman ability to monitor and respond to all manner of threats. Its anti-fraud applications range from mitigating ransomware attacks to human-targeted fraud. Unlike traditional AI that relies on pre-defined algorithms, these tools can learn and adapt instantly to thwart attacks. Make no mistake, the “bad guys” are using this technology too, and in increasingly sophisticated ways. That means the good guys need GenAI in their arsenal.
Optimism is the order of the day
THE “Most CFOs See Limited ROI from GenAI, But Are Increasing Their InvestmentThe report shows that mid-sized companies are increasingly optimistic about using GenAI. Our June survey of CFOs found that 58% believe the technology will have a positive impact on fraud and risk management practices in their industry over the next three years. That’s up from 47% in March, highlighting how quickly the technology is gaining traction among key decision-makers in businesses.
We saw a similar level of optimism in how CFOs expect GenAI to be a game changer for data security and privacy, with 55% now believing the technology will have positive impacts in these areas, also an increase from the March survey. In other words, more than half of mid-market CFOs now believe companies will benefit from integrating GenAI into key elements of their security strategies.
GenAI’s Early Adopters Predict Radical Change
The incessant hype around GenAI tends to focus on blue-chip companies and leading platforms like ChatGPT. The focus rarely shifts to mid-sized companies and specific business domains. Latest report of the C(AI)O allows us to look beyond the flashy headlines and focus on what mid-sized businesses are actually doing with GenAI today, particularly in the areas of cybersecurity, fraud prevention and risk management.
Many mid-market companies are already using this technology in two critical areas. 27% of surveyed companies have implemented GenAI to identify fraudulent behavior, errors, and other such inconsistencies. The technology’s ability to learn and adapt means it can often excel at this type of monitoring. Similarly, 28% of surveyed companies are using these tools to perform automated cybersecurity management. This indicates significant reliance on GenAI to handle complex tasks and decisions.
It may come as a surprise that “only” about a quarter of mid-market companies have deployed GenAI in these areas. After all, we just found that more than half of CFOs believe the technology will have a positive impact in the coming years. However, companies need time to deploy new security innovations, and the results suggest that a sea change in the industry is underway.
CFOs are rethinking where GenAI works best
THE “Most CFOs See Limited ROI from GenAI, But Are Increasing Their InvestmentThe report reveals a significant divergence in how CFOs perceive GenAI’s effectiveness across key applications. On the one hand, CFOs are increasingly confident that GenAI works well at detecting security anomalies. Half of CFOs surveyed in June said GenAI is very or extremely effective at identifying fraudulent behavior and other red flags, up from 25% in March.
In contrast, the same CFOs have become more skeptical about using GenAI to run automated cybersecurity management systems. In June, only 31% agreed that the technology works well in this context, down from 47% in March. This indicates that mid-market companies are becoming more informed and granular in their approach to GenAI. Going forward, CFOs will increasingly examine whether these solutions are proving effective and redirect company resources accordingly.
