What: The MBS Group reviews the role of the CFO in the age of AI.

Why it is important: CFOs are presented both as the guardians of the company here to mitigate thr risks, but also as the ones helping to identify the relevant use-cases.

The UK's inaugural AI Safety Summit at Bletchley Park, focusing on the risks and potential of AI, highlighted key issues for businesses, especially in consumer-facing sectors. The summit emphasized the significant impact of AI, especially generative models like ChatGPT. Key themes from a related roundtable with finance leaders included:

1. Generative AI's Significant Leap: Recognizing the profound advancement represented by generative AI, such as ChatGPT, which expands AI's capabilities beyond traditional bounds.

1. Rapid Pace of AI Integration: Businesses must prepare for swift AI integration, with AI expected to transform businesses in under a decade. This 'AI transformation' is predicted to be faster than digital transformation, leveraging existing data frameworks in businesses.

1. CFO's Role in Mitigating AI Risks: CFOs face the challenge of addressing both known and unknown AI risks, including bias and misinformation. Current frameworks for ethical and safe AI use are still maturing, placing responsibility on business leaders.

1. CFOs Driving AI as a Value-Add: CFOs play a critical role in using AI for enhancing efficiency, driving growth, and creating new revenue streams. An example includes IKEA’s retraining of call center staff as interior design advisors, supported by AI, generating significant revenue.

1. Identifying AI Use-Cases: CFOs need to carefully choose AI applications, balancing risk and value. Initial use cases should demonstrate AI's business value effectively, with some areas like marketing posing less risk than others like investor communications.

The summit and discussions reflect a broader recognition of AI's growing influence in business strategy and risk management. There's an increasing need for leadership teams and non-executive directors to understand AI, with future expectations for CEOs with AI experience in consumer-facing industries.

How should CFOs consider AI?