The steady advancement of artificial intelligence is "driving a shift in the skills required for finance functions," accelerating the ongoing evolution of the CFO into a strategic advisor role, said Jennifer Warawa, general manager of financial controls at insightsoftware.

Warawa noted in an interview that technology is changing the role of finance executives, enabling them to gain insights in new ways, thus placing accounting or finance leaders "in a better position to be advisors within the company, more forward-looking." Additionally, when finance leaders integrate AI into more routine, lower-value processes—such as automating accounts payable or accounts receivable—employees previously handling those processes gain more discretionary time.

Managing the AI inflection point

As the potential of AI continues to draw attention, finance executives feel compelled to integrate it into business operations, including the finance function itself, CFO Dive previously reported. Many view AI as a way to address talent shortages in areas like accounting or as a means to manage costs more effectively in an uncertain macroeconomic environment.

Warawa said finance departments are often seen as cost centers, asked to deliver the same or even more work with smaller teams. "So, even if they don't want to embrace AI, they feel they must, because it's the only way to get the work done with a smaller team," she said.

On one hand, this forces further innovation and adoption of new technology within the finance function, but "it also pushes people into an area where they're not particularly comfortable or excited," she added.

Warawa is a seasoned accounting industry professional whose career has largely revolved around the CFO's office. She founded and ran the accounting and consulting firm Dreamscape Business Services for 12 years, then spent 11 years at business software vendor Sage in various senior management roles. She joined Raleigh, North Carolina-based insightsoftware in May as part of a strategic restructuring at the financial reporting software company, taking charge of the newly created financial controls business unit, according to a press release at the time.

Warawa believes that CFOs must not only effectively leverage AI but also prepare the finance function for its future as a strategic driver, requiring close attention to how teams think about and interact with technology.

Currently, "we're almost at an inflection point: one segment of talent is excited about technology and what it means for the future, while another worries 'technology will replace my job,'" Warawa said. Responding to both perspectives in a way that allows room for growth—whether at the technology or talent level—is crucial for CFOs.

Putting technology in the right place

Warawa compared the advancement of AI in finance to her early days in accounting—when newly licensed CPAs spent their days making photocopies.

"When automation came and they went paperless, they didn't say, 'Oh, I hope paperless doesn't take my job... because I didn't want to do that job anyway,'" she said. "So I think the talent that can leverage technology to do their jobs better and faster will be the winners in this change. So, how do you empower your best talent to use technology in new and different ways, without fear?"

Beyond examining how teams use AI, Warawa also emphasized that CFOs should take a tactical approach, clearly defining where and why to apply technology—and recognizing that "a process that is flawed in itself will not be fixed by AI," she said. "It will still be flawed; AI might just run it in a faster way, in a flawed state."