Artificial Intelligence (AI) is here to stay, transforming how companies manage everything from operations to customer interactions. But should corporate finance departments take the lead in developing their own proactive AI strategy, or should this be managed by the IT department or through external suppliers?
The Case for IT Departments and Suppliers
Traditionally, AI strategy has been the purview of IT departments. IT teams possess the technical expertise to evaluate, deploy, and maintain AI systems. Centralization ensures that AI tools are integrated consistently and securely across the organization. When AI strategy is handled by IT, finance departments can benefit from a cohesive technological infrastructure that minimizes risks, costs and ensures compatibility with existing systems.
Similarly, working with external suppliers can offer significant advantages. Suppliers often provide cutting-edge AI solutions tailored to specific needs, such as financial forecasting, fraud detection, and automation of routine tasks. This approach allows finance departments to leverage advanced technology without needing to develop in-house expertise, saving time and resources while accessing state-of-the-art tools.
The Case for Finance Departments Taking the Lead
However, there is a strong argument for corporate finance departments to take a more active role in shaping their own AI strategy. Finance teams are closest to the challenges and opportunities specific to their domain. By having an AI strategy, they can ensure that AI tools are directly aligned with their unique needs, and their largest benefits, such as improving financial reporting accuracy, enhancing compliance, and driving strategic financial planning.
Having a proactive AI strategy also empowers finance departments to drive innovation. They can quickly pilot and refine AI applications, tailoring them to the specific requirements of the business. This agility can lead to more effective solutions and faster realization of benefits, as finance teams can adjust AI tools in real-time to meet evolving demands.
Finding the Right Balance
In large corporate environments, a balanced approach may yield the best results. Finance departments can set strategic objectives and identify areas where AI can deliver the most value, while IT departments provide the technical support needed to implement these initiatives effectively. External suppliers can complement this effort, offering specialized AI tools and ongoing support, allowing finance teams to stay focused on strategic goals.
In conclusion, while the technical expertise of IT departments and the innovation of external suppliers are invaluable, there is significant merit in corporate finance departments taking an active role in their own AI strategy. By doing so, they can ensure that AI investments are directly aligned with their strategic priorities, driving greater efficiency, insight, and value across the organization.