6 Ways CFOs Need to Use AI Right Now

In this article we discuss:

• The Changing Role of the CFO
• 6 Ways CFOs Should Be Using AI
• Building a Forward-Looking Strategy

Artificial intelligence (AI) is impacting all areas of enterprise—finance included. Innovative CFOs are adopting AI tools to scale processes, improve accuracy, access advanced data capabilities, and stay ahead in a fast-evolving industry. Knowing the best AI use cases for CFOs is essential to do this successfully.

Workday research found the majority (52%) of AI pioneers in finance believe AI and machine learning are a “game changer” for finance and procurement, driving optimization and innovation in decision-making, data analysis, and productivity. But a gap exists between pioneers and finance leaders at large—only 39% of the latter feel as positive about AI’s potential.

Organizations lagging in AI maturity will face an increasingly less efficient, less accurate, and less strategic finance department than that of competitors. Fortunately, there are some powerful first steps CFOs can take to integrate AI into financial operations without overwhelming employees or causing disruption. This article will outline them in detail.

The Changing Role of the CFO in the Age of AI

Being a CFO means much more than it used to. Once a role focused primarily on cost control and budget oversight, CFOs are now strategic contributors and decision makers. They collaborate with other executive leaders, working closely with the CEO to inform performance management and strategy, and the CIO to guide how technologies such as AI will be implemented in finance.

The CFO/CIO relationship is particularly important, as digital finance transformation plays a key role in organizations’ ability to stay competitive in a data-driven business environment. Right now, 50% of CFOs say they’re forced to make decisions based on gut instinct because they don’t have the data they need available to them.

CIOs are central to eliminating this barrier for CFOs. By implementing the right AI-powered financial management software solutions, IT can help finance teams ensure their data is accurate, updated, and readily available. To make this happen, CFOs have to step up their game in building baseline technology expertise. Those that fail to understand how AI improves everyday operations will fall behind.

Most importantly, CFOs must build a culture that embraces AI as an enhancer—not a replacement for human workers. Workday CFO Zane Rowe summed it up aptly, advising, “AI [is] going to be augmenting a lot of what we do today—and it should be a leverage point to drive more value no matter where you fall within an org chart.”

CFOs must shift focus to the new opportunities AI is creating for finance teams to be more strategic and lead the way for them to leverage AI to make their everyday output better.

6 Ways CFOs Should Be Using AI

While AI is still largely in the early stages of adoption, here are six of the most important ways CFOs should be looking to utilise it right now:

1. Smarter Forecasts

With AI, CFOs can build forecasts that adjust in real-time based on current data. For example, machine learning models can integrate sales trends, supply chain activity, and external variables such as commodity prices to deliver dynamic projections. These forecasts don’t require manual recalibration—they update automatically as new data flows in, allowing finance teams to adapt quickly to shifting conditions.

In practice, this means a CFO can identify risks earlier—such as a sudden revenue dip tied to slowing customer demand—and take preemptive action. AI’s ability to provide continuously updated scenarios also enhances collaboration with operations and sales, ensuring resource allocation aligns with actual performance trends rather than outdated estimates.

Generative AI takes this all a step further by simulating complex scenarios that go beyond traditional predictive AI models. For instance, it can generate detailed "what-if" analyses for variables such as fluctuating input costs, interest rate hikes, or supply chain disruptions. This capability enables CFOs to evaluate multiple outcomes simultaneously and choose the optimal course of action with confidence.

The payoff? CFOs lead with precision, not guesswork. Finance teams can align budgets dynamically and allocate capital where it will yield the highest return. 

2. Strategic Planning

When evaluating initiatives such as market expansion or capital investments, AI tools model potential outcomes based on thousands of variables. For example, a CFO exploring a new market entry can use AI to analyze expected revenue growth against operational costs, currency risks, and even competitor activity. The result is faster, more precise financial planning and decision-making.

AI also streamlines scenario testing. Rather than manually building multiple models, CFOs can evaluate risks and rewards across dozens of conditions within minutes. Finance leaders can then refine strategies and respond quickly to new opportunities or constraints in alignment with long-term objectives.

3. Process Optimization

AI helps CFOs remove friction from finance processes while creating opportunities for strategic gains. In financial close cycles, for example, AI can automate reconciliations and consolidate journal entries across multiple systems. Instead of waiting for manual updates, CFOs can access real-time insights into variances, giving them a head start on resolving issues before they escalate.

Budget reviews are another area where AI adds value. By analyzing historical and real-time spending data, AI can pinpoint inefficiencies, such as duplicate software subscriptions or underutilized resources. CFOs can use these insights to renegotiate contracts or reallocate budgets toward higher-value initiatives.

AI also brings structure to treasury operations. For instance, it can monitor cash flow patterns across the organization and suggests optimal timing for intercompany transfers, reducing fees and improving liquidity. CFOs gain confidence knowing that cash reserves are allocated efficiently while still meeting day-to-day operational needs.

4. Stronger Reporting

AI gives financial reporting a much needed transformation. By automating data aggregation and validation, AI tools eliminate the manual effort of reconciling information across systems, reducing errors and significantly shortening close cycles. For CFOs, this means delivering accurate financial results faster, which allows the organization to act on insights sooner.

AI also powers sharp anomaly detection. It can scan large datasets to flag inconsistencies or unusual entries that might go unnoticed in manual reviews. For example, if expense trends deviate from expected patterns, AI highlights them immediately, giving finance teams the chance to investigate before reporting deadlines.

AI also enhances how financial data is communicated. AI-powered platforms generate dashboards that break down complex metrics into clear, actionable insights. CFOs can customize these views for different stakeholders, whether it’s a board presentation focused on profitability or a departmental summary on budget variances, ensuring decision makers in non-finance departments understand the story behind the numbers. 

5. Working Capital Management

AI equips CFOs with real-time visibility into cash flow, allowing them to manage working capital with greater precision. Instead of relying on periodic reviews, AI continuously analyzes inflows, outflows, and payment patterns to identify opportunities for optimization and reduce uncertainty.

For instance, AI can recommend the ideal timing for supplier payments to maximize early payment discounts while maintaining liquidity for critical expenses. In receivables, AI can analyze customer payment behaviors, predict which accounts are likely to pay late, and suggest proactive measures like adjusting credit terms or prioritizing follow-ups.

Inventory management also benefits from AI. By integrating sales forecasts and supply chain data, AI helps CFOs align inventory with demand, minimizing excess stock and avoiding shortages. It ensures that working capital is tied up only where it drives value, improving overall efficiency.

The result is a finance function that moves from reactive to proactive. With AI, CFOs can optimize working capital to reduce borrowing needs, support growth initiatives, and protect the organization from cash flow disruptions. This level of control positions finance teams as strategic partners in sustaining operational stability and driving profitability.

6. Audit and Compliance

AI reduces the complexity of audit and compliance processes, providing CFOs with tools that both enhance accuracy and ensure readiness. By continuously monitoring financial transactions, AI identifies anomalies and potential compliance breaches in real time.

For example: If a transaction deviates from established patterns or exceeds approval thresholds, AI flags it immediately for prompt investigation and resolution.

Regulatory compliance becomes more efficient with AI’s ability to cross-check large volumes of real-time data against legal requirements. Whether it’s ensuring adherence to evolving tax codes or validating financial disclosures, AI reduces manual effort and minimizes the risk of oversight. CFOs can rely on automated audit trails that track every transaction and adjustment, offering transparency that satisfies both internal and external stakeholders.

AI also simplifies the audit process itself. Instead of sifting through sample data, auditors can analyze complete datasets, providing a more comprehensive view of the organization’s financial health. This reduces the time and cost associated with traditional audit methods and enables CFOs to respond faster to requests for information.

Building a Forward-Looking AI Strategy

The journey to integrating AI into the finance function is not without challenges, but for the CFOs who are willing to embrace its potential, the rewards are transformational. AI equips finance leaders to more effectively manage complexity, improve accuracy, and lead their teams with sharper insights and agility.

The Workday Global CFO Indicator report confirmed the widespread impact of AI for finance, identifying forecasting, budgeting, risk management, scenario planning, reporting, and several other finance-related processes as top transformational areas for AI.

The gap between finance AI pioneers and those still hesitant reflects a pivotal moment—CFOs who take action now will not only keep pace with their industries but redefine what success looks like for their organizations. Finance AI pioneers express a higher confidence in AI’s ability to deliver key benefits directly related to their function, such as higher revenue and lower costs, and ones that extend beyond it, such as organizational agility and strong employee engagement.

Keep in mind: Adopting AI doesn’t require an overhaul of every system or process overnight. The key is starting small, targeting high-impact areas (such as forecasting, compliance, or reporting), and scaling from there. Building a culture that views AI as an enhancer rather than a disruptor will facilitate a smoother transition and sustained adoption.

For CFOs, the imperative is clear: AI isn’t just a tool for efficiency—it’s a strategic advantage that enables finance to drive innovation and growth for the enterprise.

Workday delivers industry-leading AI finance solutions that empower CFOs to be strategic leaders. Learn how Workday can help you lead with confidence.