AI investment strategies CIOs can pitch to hesitant CFOs

The rapid adoption of artificial intelligence has created tension between CIOs and CFOs over ROI expectations and implementation strategies.

Current landscape: Half of CFOs indicate they will cut AI funding without measurable ROI within a year, while 80% of organizations plan to increase AI investments overall.

• A Basware survey of 400 CFOs reveals that about one-third lack a clear vision for AI implementation
• Approximately 60% of global CIOs believe increased revenue alone justifies AI costs
• In 2024, 42% of companies report their generative AI initiatives haven’t delivered meaningful results

Implementation challenges: Organizations face significant hurdles in selecting and validating AI projects that can demonstrate clear value.

• Air Canada’s chatbot controversy highlights the risks of rushed AI deployment
• Companies struggle with establishing reliable benchmarks for measuring AI ROI
• The lack of clear success metrics and data quality issues complicate implementation

Strategic prioritization: Experts recommend aligning AI initiatives with core business strategies and competitive advantages.

• Focus on areas with existing high-quality data and well-defined pain points
• Prioritize scalable solutions that can be adopted across departments
• Target projects in customer experience optimization, supply chain forecasting, and preventive maintenance
• Consider regulatory compliance and e-invoicing, which 75% of CFOs prefer

Validation framework: Successful AI implementation requires a structured approach to testing and measurement.

• Start with clearly defined metrics aligned with business outcomes
• Implement pilot programs to test assumptions and gather insights
• Engage cross-functional teams to ensure stakeholder buy-in
• Focus on quick wins and tangible results through manageable phases

Building the business case: CIOs can strengthen their position with CFOs through several key strategies.

• Present expected gains in concrete financial terms
• Document detailed implementation plans with clear milestones
• Demonstrate quality control measures and risk management strategies
• Explain long-term strategic impact beyond immediate ROI

Looking ahead: While AI adoption presents significant opportunities, success requires careful balance between innovation and fiscal responsibility.

The tension between rapid implementation and measurable returns will likely continue to shape AI adoption strategies, with successful organizations finding ways to bridge the gap between CIO ambitions and CFO requirements through careful project selection and clear ROI frameworks.