CFOs Expanding Strategic Influence, But AI Governance Lags Behind Adoption
Chief financial officers are taking on broader strategic roles within their organizations, yet most still spend the majority of their time on operational tasks, according to research released by the Financial Education & Research Foundation and CrossCountry Consulting.
The study surveyed 197 finance executives and conducted interviews across public, private, nonprofit, and government sectors. It found that 77% of CFOs report being "very involved" in enterprise-wide strategic decision-making. But 68% spend 40% or less of their time on strategic activities, revealing a gap between aspiration and reality.
AI Adoption Outpacing Governance
Organizations are moving faster on AI implementation than on the structures to manage it. Sixty-four percent report active transformation initiatives, with 91% focused on efficiency improvements and 80% on automation and AI.
Governance structures have not kept pace. Nearly half of organizations lack formal AI governance frameworks. Only 7% of finance leaders report being "very confident" in interpreting AI outputs.
The fragmentation of accountability compounds the problem. While 89% of respondents say the CFO should own AI outcomes in finance, actual responsibility is scattered: 22% CFO-led, 22% CIO-led, 15% shared, and 42% distributed across broader leadership.
Talent Remains the Biggest Constraint
Eighty-seven percent of finance teams report that 25% or fewer members have formal training in data analytics or AI. Over half have no formal preparation for AI and digital transformation at all.
Talent gaps rank among the top barriers to transformation, cited by 55% of respondents. Change resistance and budget constraints each affect 60% of organizations, while legacy systems hamper 55%.
Month-End Close Still Manual
Finance departments continue to struggle with routine operational work. Manual processes, system limitations, and data quality issues slow month-end closes at 81%, 49%, and 38% of organizations, respectively.
Only 15% have implemented partial automation of the close process. However, 62% are in planning phases for close automation, suggesting movement is underway.
Private Equity Faces Distinct Pressures
PE-backed organizations face compressed timelines for value creation-typically 3 to 5 years-along with integration complexity from add-on acquisitions and exit-readiness requirements. These factors intensify the need for AI-driven transformation.
Organizations are responding by standardizing processes, clarifying roles, and shifting from exception-driven work to scalable operating models. Sixty-four percent report active transformation initiatives.
What CFOs Need Now
CFOs stepping into strategic roles need stronger foundations in three areas: AI governance structures, talent development programs, and cross-functional collaboration frameworks.
The research identifies efficiency improvement, digital transformation, and cost reduction as primary drivers of change. When paired with clear data foundations and defined accountability, AI enables finance to move from reactive reporting to proactive value creation.
The complete report is available from the Financial Executives International research portal.
Learn more: Explore the AI Learning Path for CFOs to build competency in AI governance and finance automation, or review resources for AI for Executives & Strategy.
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