In 2025, wherever you look you see AI-powered products and AI optimization of professions and business processes. Yet, in the financial sector, adoption remains relatively low. Only 9% of CFOs were leveraging artificial intelligence in their work as of 2024, according to CFO.com. But it doesn’t mean AI isn’t reshaping the financial sector, rather, it indicates that the remaining 91% are missing out on key opportunities.
In this article, we explore how AI is reshaping the role of the CFO, how financial officers can harness its potential effectively, and the challenges they encounter when adopting it.
How AI has already changed the CFO role
Perhaps the most significant shift in the CFO’s role since AI emerged is the pivot from past-focused reporting to future-oriented forecasting. Previously, financial directors were more reliant on reviewing past decisions and their effects on the business. Today, they are expected to leverage that reflection combined with data to proactively forecast and guide strategic direction.
This shift has occurred because AI can now deeply analyze vast amounts of data and generate insights that CFOs can use to shape and adapt their growth strategies and expense plans. For startups in particular, financial specialists must consider where they can save money, reallocate resources to support growth in critical areas, and reduce expenses in areas that are less essential.
With AI, CFOs are becoming strategic advisors. They now leverage predictive and prescriptive analytics to guide decisions, identify opportunities, and mitigate risks. At the same time, machine learning algorithms help automate repetitive tasks like invoice processing, payroll, data reconciliation, vendor interactions, and others.
How AI can help in practice
а. Financial planning and analysis
AI in Financial Planning and Analysis (FP&A) can help CFOs extract relevant insights from vast amounts of financial and operational data. Some tools collect and integrate information from both internal and external sources, analyze trends, identify patterns, and provide real-time reporting.
This knowledge allows CFOs to anticipate challenges, make informed decisions, run potential scenarios, and adapt strategies based on the latest analysis.
b. Cash flow planning
AI can help CFOs optimize cash flow and working capital by analyzing payment cycles, receivables, payables, and inventory patterns. Popular tools like HighRadius and Prophix leverage AI and machine learning for cash forecasting and capital management. They use predictive analytics to improve forecast accuracy by recognizing patterns and trends.
For startups, this is especially valuable because early-stage companies often face unpredictable revenue streams and tighter cash reserves. AI-driven tools can foresee cash inflows and outflows, anticipate seasonal or client-driven fluctuations, and help founders avoid liquidity crunches.
c. Fraud detection and risk management
AI is becoming an irreplaceable tool for CFOs in risk and compliance. It can monitor vast amounts of transactional and operational data and identify anomalies that may indicate fraud or financial mismanagement. AI analyzes patterns across accounts, payments, and contracts, and flags suspicious activities. In industries such as financial services and telecoms, this capability can prevent significant losses and protect company assets. Additionally, AI can help CFOs anticipate emerging risks, simulate potential financial threats, and recommend mitigation strategies.
As an example of successful AI implementation, in 2025, Citi and Ant International’s Falcon tool for FX forecasting and risk management helped a major Asian airline cut hedging costs by 30%, freeing up capital for growth.
d. Revenue growth
AI might help CFOs uncover new revenue opportunities by analyzing customer behavior, market trends, and operational data. Tools like ChatFin’s AI Analytics use predictive modeling and advanced pattern recognition to forecast future performance and find valuable insights in historical data. AI-powered tools can help CFOs predict customer churn, identify high-value clients, and recommend personalized products or services to improve retention.
Challenges and risks
Despite all the potential, AI in financial services comes with significant challenges. Integration with legacy systems remains a major hurdle, as these older infrastructures are often incompatible with new AI technologies. As a result, implementation can be costly and complex, leading to delays.
At the same time, poor data quality and inconsistent management can cause AI models to produce inaccurate or misleading insights.
Another concern is the rising complexity of regulations. Financial institutions must comply with increasing scrutiny and transparency requirements for AI systems, especially in high-risk areas like credit scoring and fraud detection.
Workforce readiness is also a challenge. Many finance teams are still trained for historical analysis rather than AI-driven forecasting.
These combined hurdles contribute to slower-than-expected AI adoption, despite growing investment and strong interest in the technology among finance professionals.
The future CFO
Nevertheless, the evolution of the CFO role is inevitable. Financial officers will increasingly be expected to leverage AI in their work and shift from reflection to forecasting. AI can automate routine tasks, improve forecasting, and support risk management, but CFOs must understand how to use it effectively.
Leveraging AI tools also requires developing new skills and improving existing ones. Future CFOs need to be able to read and interpret large datasets, have technology competence to understand AI, analytics, and finance software, think strategically to link financial decisions to business goals, and manage risk and compliance effectively.
CFOs who develop these skills and adapt to technological and market changes will be able to drive growth, manage risk, and shape successful long-term strategies.
For startups in particular, the ability to use AI for financial management may provide an even greater competitive advantage than access to capital. AI will allow them to optimize
resources, manage risk proactively, and respond quickly to market opportunities, amplifying the impact of every dollar they have.
