Artificial intelligence (AI) is not a futuristic concept, but a present reality that is reshaping various industries and functions, including finance. According to a report by Accenture, AI has the potential to increase the profitability of the financial services industry by 31% by 2035[^1^]. However, to harness the full benefits of AI, finance leaders need to adopt a strategic and proactive approach, rather than a reactive and incremental one.
This is the advice of John Murphy, the CFO of Adobe, a global leader in digital media and digital marketing solutions. In an interview with Forbes, Murphy shared his insights on how he is bringing AI into the finance function at Adobe, and what other CFOs can learn from his experience[^2^].
Murphy said that AI is not just a tool, but a mindset that requires a shift in culture, skills, and processes. He said that CFOs need to embrace AI as a strategic partner that can augment human capabilities, rather than a threat that can replace them. He also said that CFOs need to invest in building a data-driven culture that can leverage AI to generate insights, automate tasks, and enhance decision-making.
Murphy explained how he is applying AI to various aspects of the finance function at Adobe, such as:
- Revenue forecasting: Adobe uses AI to analyze historical data, customer behavior, and market trends, and provide more accurate and timely revenue forecasts. Murphy said that AI has improved the accuracy of Adobe’s revenue forecasts by 10%, and reduced the time spent on forecasting by 50%.
- Risk management: Adobe uses AI to monitor and flag potential risks, such as fraud, compliance violations, and cyberattacks. Murphy said that AI has helped Adobe reduce the number of false positives, and increase the speed and efficiency of risk mitigation.
- Customer service: Adobe uses AI to provide personalized and proactive customer service, such as chatbots, voice assistants, and self-service portals. Murphy said that AI has helped Adobe improve customer satisfaction, retention, and loyalty.
Murphy also shared some of the challenges and best practices of bringing AI into the finance function, such as:
- Data quality: Murphy said that data is the fuel for AI, and CFOs need to ensure that the data they use is reliable, relevant, and consistent. He said that CFOs need to establish data governance frameworks, data quality standards, and data validation processes.
- Talent development: Murphy said that AI requires a new set of skills and competencies for the finance team, such as data literacy, analytical thinking, and business acumen. He said that CFOs need to invest in training, reskilling, and upskilling their finance team, and also hire new talent with AI expertise.
- Change management: Murphy said that AI requires a change in the mindset and behavior of the finance team, and CFOs need to manage the change effectively. He said that CFOs need to communicate the vision and value of AI, address the fears and concerns of the finance team, and foster a culture of innovation and collaboration.
Murphy concluded that AI is a game-changer for the finance function, and CFOs need to be at the forefront of the AI revolution. He said that CFOs need to be visionary, strategic, and proactive in bringing AI into the finance function, and leverage AI to create value for the business, the customers, and the shareholders.
