The current global economy is characterized by geopolitical fragmentation, macroeconomic pressures and the rapid emergence of artificial intelligence. Against this backdrop, the Chief Financial Officer (CFO) plays a more important role than ever in developing a strategy that guides the company safely through times of upheaval.

The report written on behalf of SAP “Beyond the Balance Sheet: The New Mission for CFOs” by Economist Impact shows how CFOs are no longer just responsible for accurate financial data, but are actively involved in strengthening business resilience, driving digital innovation and creating long-term value. The results of a survey of 480 CFOs worldwide illustrate how the scope of CFOs’ responsibilities is expanding, how they have to address growing risks and are required to introduce AI solutions quickly and specifically.

To lead effectively in volatile times, CFOs today must promote agile operations, intelligently automate processes and take new approaches to people development. Below we explain how finance managers address these challenges.

The scope of tasks for CFOs is expanding

Gone are the days when CFOs were solely concerned with financial planning and reporting. They now have influence far beyond the traditional boundaries of the finance department. Nearly 90% of CFOs report that they are more involved in digital transformation and risk management than they were three years ago. Two thirds are actively involved in shaping sustainability and ESG strategies.

These additional responsibilities reflect an overall development. Today, CFOs play a key role in making decisions that impact customers, products and employees. They are expected to identify disruptions in advance, reduce risks and enable agile action. At the same time, they should continue to ensure profitability.

Macroeconomic and geopolitical developments and technological change mean that CFOs are becoming more involved in operational decisions. One of the CFOs interviewed stated that finance managers today have to “juggle many tasks” and acquire comprehensive knowledge of the fundamentals of corporate governance, processes and control mechanisms in order to effectively manage the transformation of the company.

Against a backdrop of rising expectations and a merging of roles, it is clear what the next challenge is: balancing expanded priorities with the skills required to deliver them.

A more accurate risk radar as protection against imponderables

In uncertain times, CFOs are on the front lines and under increasing pressure to keep risks and costs from escalating. Over 80 percent of the CFOs surveyed reported that they now have to pay more attention to the issues of risk management and compliance. For 34 percent, the tasks in this area have even increased significantly.

However, the biggest headache for CFOs is not the increase in costs, but rather the unpredictability. As a result of inflation, changing trading conditions and higher interest rates, capital allocation becomes more difficult. While almost 90 percent of CFOs are confident that they will achieve their company’s sales goals, only 37 percent also express this confidence with regard to liquidity goals.

CFOs therefore focus specifically on the areas that they can control. AI-powered scenario planning enables faster, more detailed modeling while deriving predictive risk indicators from real-time operational data. Flexibility also plays a greater role – whether in modernizing systems for adaptable production or in renegotiating supplier contracts with shorter, more variable terms.

The mandate for CFOs is clear: they must position the financial organization to withstand shocks, respond in real time and make progress in executing strategy even in volatile times.

CFOs play a key role in AI adoption

Digital transformation is one of the central tasks of CFOs today. Almost 90% report that they are more involved – and the focus is usually on AI. Financial managers see particularly great potential in the area of ​​compliance. Here, generative AI can be used to analyze complex regulations, monitor regulations for changes, and automate updates to internal systems.

But there are a number of obstacles to expanding the use of AI.

Skills shortage: the biggest obstacle to faster AI adoption

Over 60 percent of the CFOs surveyed see the greatest challenges in upskilling the workforce and hiring specialists who are well-versed in digital technologies. Fragmented systems and limited access to real-time data further exacerbate the problem. Therefore, CFOs focus on both expanding their team’s knowledge and improving data quality. They are aware that the use of AI can only be expanded if employees know how to use it and that the data used for AI is trustworthy.

Conflicting goals regarding ROI

CFOs need to achieve quick success with the use of AI. However, the greatest benefits of AI in terms of forecasting, innovation and growth will take time to materialize. To address these trade-offs, leading CFOs are defining clear performance benchmarks, targeting AI for use cases that drive revenue growth, and coordinating the company-wide scaling of capabilities that create sustainable value.

Building a workforce ready for an AI future

AI is changing the way we work. The growing concern that jobs could be replaced by AI continues to be a real challenge for finance teams. However, almost 70 percent of CFOs see AI as a tool that complements human skills. This results in roles, competencies and hiring decisions being reconsidered. Leading CFOs are redefining entry-level roles, investing in digital skills and analytics, and building diverse teams to strengthen the leadership pipeline by combining human judgment with AI-powered insights.

These changes reflect a broader evolution: Finance is no longer just responsible for reporting on data that has already been collected, but is evolving into a function that provides predictive insights, supports real-time decision-making and drives company-wide capability building.

CFOs who balance quick efficiency gains with long-term investments in data, skills and new ways of working will use AI to enable not only short-term productivity gains, but also sustainable competitive advantages.

Outlook: new strategies for CFOs

The results of the Economist Impact survey show that CFOs now have a significant impact on how companies manage risk, adopt AI solutions and build the skills needed for continuous transformation in their workforce.

This change requires new strategies for leveraging potential through automation, enabling better coordination between individual functions, making systems and supply chains more flexible, and creating new career opportunities in finance for a digital future. One survey participant put it this way: “The modern CFO no longer just monitors value, but also creates future value.” The future belongs to leaders who combine disciplined cost and risk management with bold investments in data, skills and AI-powered insights.

With SAP solutions for financial management, finance managers can bring together data, processes and intelligent functions to meet the growing demands of their role. As expectations of the finance department continue to rise, SAP wants to continue to support CFOs with solutions that provide clear insights and enable them to make confident decisions in uncertain times and prepare the company for future demands by strengthening resilience.

Learn more about SAP’s financial management solutions.

David Imbert heads Product Marketing for Finance at SAP.