CFOs say they’re prioritizing tech investments, and cutting costs elsewhere

It’s a good time to be cutting-edge technology. A human worker? Not so much.

According to a June RGP survey of more than 200 finance leaders, nearly six in 10 organizations are investing in data, modern infrastructure, and artificial intelligence. The same percentage also said they’re spending money on “operational efficiency initiatives to streamline processes and protect margins in an uncertain economic climate.”

But it’s not like companies are throwing money at AI hand over fist, at least not yet. Just 42% of the respondents said they were spending 10% or more of their capital budgets on AI, despite the fact that 84% said they’re optimistic about AI’s potential.

And it’s not all spend, spend, spend at these organizations, either.

“Cost reduction remains top of mind” among finance leaders, according to the survey. Respondents said they anticipate laying off employees, cutting capital expenses, and shedding third-party services.

“The era of blanket cost-cutting is over,” the report states. “CFOs are pursuing intelligent reallocation of capital, prioritizing transformation over trimming.” The result, according to RGP, is cuts to “legacy areas” and more money for “innovation enablers.”

Buddy system. Those who’ve been in the CFO seat for a while know that role has changed significantly over the years into a strategic partner of the chief executive. But it’s not just the CEO they’re rubbing elbows with these days.

According to RGP, the finance chief “is evolving into a broader enterprise leadership position, requiring deep collaboration with CIOs and CHROs.” The consulting firm added that CFOs now share decision-making with their counterparts in HR and IT “around workforce strategy, digital investment, and enterprise transformation.”

“Whether it’s funding AI pilots, restructuring operating models, or navigating workforce redeployment, the CFO’s perspective is essential.”