When it comes to AI transformation, CFOs typically turn to two primary groups of partners: the CIO or technology lead, who act as partners to provide the tech and innovative capabilities, and various business unit leaders, who help carry out the goals.
That's according to business leaders at the consulting firm Boston Consulting Group who recently stopped by the WSJ Leadership Institute's office to discuss their findings with me and my colleague Kristin Broughton, regarding their recent gathering of CFOs at a BCG summit in New York.
At that summit, the general sentiment was positive and several CFOs highlighted the fast adoption and integration of AI tools within their finance departments and the wider organizations. That marked a notable shift from the cautious skepticism in recent years to the strategic implementation phase today, according to James Tucker, managing director and senior partner at BCG in Toronto, where he manages the firm's corporate finance and strategy practice.
Executives also were "optimistic" regarding AI's ability to automate manual tasks and act as a real-time tool for several sales, marketing and finance functions. On the downside, finance leaders noted key challenges including economic and political uncertainty, and managing supplier and token costs, they said.
Here are a few findings and key quotes that struck us:
There is tremendous pressure on CFOs today. The burden of proof regarding AI investments won't take two or three years; it will be decided in a shorter time frame, creating massive career opportunities for those who succeed and exposing those who fall short, said Julien Ghesquieres, global leader of Boston Consulting Group's corporate finance and strategy practice.
"AI is going to be a friend, not a foe," Ghesquieres said. The modern CFO also is evolving from a reporter of news into a "Chief Performance Officer," Tucker noted.
"As CFOs evolve to the chief performance officer, they have a need to have a good sense of what drives value in the business and how to unlock that value.... They help shape the news; they don't just report the news to some degree," Tucker said.
The Week Ahead
Monday
Fixed-income markets are closed in observance of Columbus Day.
Tuesday
Earnings: (Albertsons), (Citigroup), (Domino's Pizza), (Goldman Sachs Group), (Johnson & Johnson), (JPMorgan Chase), (UnitedHealth Group) and (Wells Fargo)
The National Federation of Independent Business releases its Small Business Optimism Index for September.
The National Association of Realtors reports existing-home sales for September.
Wednesday
Earnings: (ASML Holding), (Bank of America), (BlackRock), (Fastenal), (Morgan Stanley), Progressive and State Street
The Bureau of Labor Statistics releases the consumer price index for September.
The Federal Reserve releases the beige book for the seventh of eight times this year.
Thursday
Earnings: Alcoa, (Bank of New York Mellon), (Charles Schwab), (Interactive Brokers Group), (J.B. Hunt Transport Services), (Marsh & McLennan), (PNC Financial Services Group), (Prologis), (Taiwan Semiconductor Manufacturing) and (U.S. Bancorp)
The Census Bureau reports retail sales data for September.
The BLS releases the producer price index for September.
Friday
Earnings: (Citizens Financial Group), (M&T Bank), (Regions Financial), Travelers and (Truist Financial)
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What Else Matters to CFOs
Amazon.com is in talks to acquire artificial-intelligence startup Decart in a deal that could be valued at around $7 billion, according to people familiar with the matter.
San Francisco-based Decart's software makes it easier for developers to switch between different AI chips, which is increasingly important as companies race to secure more computing power, Kate Clark and Lauren Thomas report in an exclusive for The Wall Street Journal.
A deal could come together soon, the people said, assuming talks don't fall apart or another suitor doesn't emerge.
Decart has raised more than $400 million in venture capital funding from investors including Sequoia Capital, Benchmark and Radical Ventures, according to PitchBook. It was valued at nearly $4 billion in May.
Other headlines
-- When Companies Stop Driving a Hard Bargain, This Fed Official Starts Worrying
-- Air Travel Emerges as Dangerous Front Line in Global Conflicts
-- AI Agents Are a Threat to Travel Businesses. Airbnb Could Still Be a Winner.
-- FTX's Old Bitcoin-Mining Assets Are Now Part of the AI Boom
-- America's EV Downturn Hides a Silver Lining: Charging Is Quietly Getting Better
-- Volkswagen Vehicle Deliveries Fall on Continued China Weakness
-- Americans Win Nobel Prize for Work on Economic Stability
-- WSJ Survey: Why Economists Think Higher Bond Yields Are Here to Stay
-- Why China Doesn't Want to Join the Ranks of the World's Developed Countries
-- The Sunday Scaries Are Real-and They're Getting Worse
Quotable
"The risk of dehumanization-of building a future that excludes God and reduces the other to a means-is an ancient and ever-new temptation that today takes on a technical guise."Pope Leo XIV, writing in a rare encyclical in May on the topic of "safeguarding the human person in the time of artificial intelligence."
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