By Kevin Rhodes, CFO at Extreme Networks
Today’s economic landscape is marked by ongoing change. With geopolitical tensions, uncertainty around tariffs and rapid technological and AI innovation at the forefront, all market conditions are shifting quickly, and the days of relying only on routine reporting cycles to guide the future are antiquated and in the past.
Given the ever-changing macro environment, there is more pressure on Chief Financial Officers (CFOs) to make strategic decisions more quickly – but with the same accuracy and confidence.
The ever-growing expectations on finance leaders
Historically, CFOs have been regarded as financial stewards, responsible for accurate reporting, budgeting and fiscal discipline. Today’s CFOs have a much more expanded role – not only being a steward of the financial health of a company – but they are increasingly asked to weigh in on everything from digital‑transformation roadmaps to product direction to global supply‑chain architecture. Their insights help shape the long-term vision and strategic direction of a company, while keeping a watchful eye on growth, profitability and of course, risk.
A recent Deloitte survey revealed that CFOs to have seen significant changes in their roles over the last five years, with more than half having increased responsibility for strategy and business development (66%), ESG (66%), risk management (63%) and data governance (53%).
Naturally, this puts CFOs in a more central role, and the technology tools they rely on need to evolve just as quickly as the challenges they are facing.
Keeping up with the CFO’s new normal
To make the right decisions while juggling various key responsibilities, CFOs need timely, actionable insights. That’s where AI and data analytics can make a real impact, especially when internal systems are unified and able to support AI tools to their full potential.
One of the most significant advantages of AI is its ability to deliver real-time insights. Not only does it allow financial leaders to be more agile and respond to changing climates, it also helps them identify potential risks before they fully take shape.
Machine‑learning models simply ingest transactional feeds as they occur, identifying trends and risk signals in moment. Take supplier payments for example. Through AI-driven analysis, a CFO overseeing operations across several regions might notice that payment delays from a particular market are gradually increasing. On the surface, this might seem like a minor fluctuation, but the model picks up a consistent pattern tied to broader financial and economic instability in that region. With this insight surfaced in real time, the CFO can take immediate action, reallocating credit teams’ time and focus, evaluating working capital needs and adjusting payment terms to act before cash flow is impacted.
But predictive power alone isn’t enough. To unlock the full potential of AI and make foresight a reality for the CFO, organizations need to also establish a technological foundation that connects the dots across teams.
By raising concerns about the limitations of AI in a fractured system, CFOs can have a real impact on their company’s technology strategy. Whenever an organization invests in AI tools, now that CFOs are part of that process, it’s an opportunity to prioritize unifying systems and critical functions like network infrastructure and security tools along with AI. Bringing everything together under a single platform both eliminates the friction of fragmented systems across departments and allows CFOs – and others across the organization – to make quick, data-driven, forward-looking decisions with confidence.
Reactivity vs proactivity: Turning hindsight into foresight
If you ask any member of the C-Suite, they’ll all most likely agree that it’s better to anticipate scenarios than to react and respond to them. Planning out your AI strategy is a critical step.
To avoid rushed, high-pressure decision-making driven by panic rather than clear judgment, CFOs can think about what areas of the business need to be monitored and tracked, so they can predict potential challenges.
This is where AI’s predictive power really shines.
With advanced modelling and foresight capabilities, financial leaders can anticipate potential scenarios, assess risk and take early action. Armed with more time and deeper insight, CFOs can evaluate a broader range of factors, such as resource demands, stakeholder impact, market perception, and internal consequences, to develop a more robust and proactive strategy.
Whether it’s identifying a supply chain disruption as it emerges or recognizing early signs of shifting customer behavior, AI gives CFOs the ability to act before a problem arises.
Digital skills for the AI age
Despite the vast array of benefits AI has to offer, AI applications alone won’t transform a finance person into a bold strategic leader overnight. The buck still stops with CFOs to develop the mindset and decision-making confidence this role demands.
Remember, AI is the catalyst, not the crutch.
As the CFO role continues to adapt and shift, financial leaders must be ready to take on their new responsibilities. This means developing “digital fluency” to grapple with this technology to effectively identify the right data and make smarter decisions – then elevate them up to the management team for discussion and action.
Financial leaders must be able to stay two steps ahead to remain agile enough to adjust course when conditions shift under their feet. It’s a job that requires you to wear many hats. This calls for sharp judgement and the ability to navigate change with one eye on the future and the other on the bottom line.
