Angus Milledge, Head of New Business Sales EMEA
Every few decades, new technology emerges that promises to reshape the business landscape. From the internet to mobile and cloud computing, and most recently, big data and analytics, each innovation has transformed how businesses operate. Today, that transformative force is artificial intelligence (AI), and it’s poised to deliver on its promise in a big way.
While large enterprises have long been at the forefront of AI adoption, the technology is now becoming accessible to small and medium-sized businesses (SMBs). Recent research from SAP Concur reveals a significant shift: 63% of Chief Financial Officers (CFOs) are planning to invest in advanced technology solutions in 2024, up from just 33% last year.
Historically, technology investments were dominated by large companies with big budgets and a high tolerance for risk. Smaller businesses, focused on budget constraints, were slower to adopt. However, the 2024 data shows a shift, with nearly half of small firms (250-499 employees) now making substantial investments in growth.
This upcoming tech revolution could be the key for SMBs to navigate economic uncertainty. By investing in emerging technologies like AI, small businesses can enhance efficiency, reduce costs, and open up new growth opportunities.
But how can CFOs lead this charge and effectively implement AI?
- Investing in AI Applications
- The adoption of AI among CFOs has surged, with 51% now investing in AI compared to just 15% last year. Small businesses are finding strategic applications for AI beyond just cost savings, such as improving forecasting, automating tasks, and enhancing risk management.
- Confidence in AI is growing, with fewer CFOs seeing it as a threat and more viewing it as essential to staying competitive.
- Accelerating Digital Transformation
- In response to ongoing economic volatility, finance leaders are prioritising digital transformation to achieve cost efficiencies. AI can streamline workflows, optimise administrative tasks, and improve productivity, helping smaller businesses catch up with larger counterparts.
- To ensure successful digital transformations, CFOs should prioritise scalable, user-friendly tools that integrate seamlessly with existing systems, driving high employee adoption rates.
- Exploring Data Analytics and Reporting Tools
- Many CFOs are collaborating with IT to cut costs, but achieving this requires data visibility and real-time insights. AI-powered analytics and reporting tools can provide the agility needed to optimise spending and improve business processes.
- AI is increasingly being integrated into existing data analytics initiatives, reclassifying and enhancing them with advanced capabilities.
As AI becomes more accessible, SMBs have the opportunity to integrate this technology into their operations, potentially levelling the playing field with larger organisations. By partnering with IT and trusted vendors, CFOs can effectively manage AI investments, measure ROI, and lead their businesses through the next tech revolution.
