Connect with us

Technology

The AI Tipping Point: Half of CFOs will axe AI investment if it doesn’t show ROI next year

Published

on

4 out of 5 organizations are set to increase AI investment, but CFOs ‘don’t know where to start’31% lack clear strategic vision for AI within the finance functionThis uncertainty is preventing 41% of finance leaders from prioritizing AI investment75% of CFOs want greater investment in AI to focus more on strategic activities such as e-invoicing compliance and regulation

CHARLOTTE, N.C., Nov. 13, 2024 /PRNewswire/ — Four out of five Chief Financial Officers (78%) have expressed a desire to increase their investment in AI over the next 12 to 18 months, recognizing its value in transforming financial operations, but admit they ‘don’t know where to start’, according to a new *global survey.

While this signals growing confidence in AI, it’s accompanied by a strict demand for accountability. Half of CFOs (50%) report they will axe AI investment if it fails to deliver measurable ROI within a year, highlighting a narrow window for proving its impact.

The findings were revealed in accounts payable automation Basware’s AI to ROI Report, conducted by independent research firm Financial Times Longitude. The study surveyed 400 global CFOs and finance leaders on their attitude, priorities and challenges when it comes to AI in the finance department.

Infographic – https://mma.prnewswire.com/media/2555171/Basware_1.jpg

Uncertainty is Restricting Investment

The biggest priority for financial leaders when implementing finance transformation projects is cost efficiency, with one-third (32%) listing it as their primary focus.

However, any financial confidence will remain rocky with macroeconomic and geopolitical uncertainties continuing to swirl up until the end of the year, and beyond.

This uncertainty is directly impacting AI adoption within finance functions, making it challenging for 41% of finance leaders to prioritize AI investment.

No one is exempt from the fallout of uncertainty. Even Meta’s latest earnings saw a reduced stock-price revision worth $5.1bn to reflect concerns over the company’s capacity to mobilize AI investments and sustain growth. Meta has invested in a “significant acceleration” in AI-related infrastructure, but analysts warn that they need to prove they can continue to cover its rising AI costs and deliver ROI. For companies like Meta, a bounce-back is likely, but recoverability in the short-term isn’t achievable for all.

Unclear AI Strategy

According to the report, finance leaders want to invest more in AI to reduce manual tasks and allow their teams to focus on priorities in their business. 70% of finance leaders said that staff want AI support for administrative tasks, while 75% report that AI has enabled their workforce to focus on more strategic activities such as e-invoicing compliance.

However, the biggest barrier to finance transformation is change management and an unclear AI strategy. 40% of finance leaders state that their organization lacks change management capabilities, while 31% highlight a lack of clear strategic vision for the future of the finance function.

Infographic – https://mma.prnewswire.com/media/2555172/Basware_2.jpg

These factors hinder ROI for AI projects, resulting in question marks over investment without tangible financial benefits.

Perttu Nihti, Chief Product Officer at Basware, commented on the new AI study:
“The office of the CFO is tasked with overseeing a complex range of functions from regulatory compliance through to cash flow management and financial reporting. All of which are areas where AI-powered automation can help to reduce hours and relieve pressure. But the success of AI investment hangs on knowing where to start and proving impact. We’re at the AI tipping point. Focusing on high-value wins, such as AI-powered efficiency that demonstrate quantifiable ROI quickly, in areas such as compliance, error reduction and fraud detection, will help justify investment across a company’s organization.”

Turning Investment into Results

Accounts Payable is one such starting point that is already returning greater levels of ROI. The survey revealed that organizations prioritizing AI investment are realizing a return of 136% ROI, with savings exceeding $1.36 for every $1m invested over the duration of three years.

Among CFOs prioritizing AI innovation and applying it to processes in accounts payable, reducing errors, faster fraud detection, reduced operational costs and improved regulatory compliance were found to be the greatest benefits.

How One Global Company Realized AI’s ROI

One example of how AI has driven ROI for an enterprise is paper and packaging manufacturer Billerud. The accounts payable team was previously hindered by time-consuming manual invoice processing, which cost them several hours each day. To address this inefficiency, they implemented Basware’s SmartPDF AI Instant Learning solution, which uses AI and text extraction to convert PDF invoices into authentic e-invoices.

Billerud has seen a substantial reduction of invoices needing validation, dropping from 15% to 9% due to AI Instant Learning, and saving AP staff several hours each day. Now, powered by AI, over 90% of their invoices are validated automatically due to faster, more accurate data extraction.

Jesper Persson, Business Developer at Billerud, said:
“Since day one, we’ve perceived the desired values from the project. The quality of invoices has improved considerably, and the AI continues to evolve and improve with each passing day. The efficiency gains we achieved translated directly into tangible cost savings, paving the way for a rapid return on investment within just a few months.”

The findings reveal a tipping point for AI in finance. While 50% of CFOs may cut AI investments without clear ROI, those that identify specific starting points for AI implementation – such as invoice processing automation – can achieve measurable returns within months rather than years. These successes are creating a blueprint for broader AI adoption across finance functions.

 

Notes to Editors
* Invoice automation company Basware and Financial Times Longitude surveyed 400 global CFOs and finance leaders

For the full report, visit here: https://www.basware.com/en/resources/from-ai-to-roi-cfos-and-the-fast-track-to-value

About Basware

Basware is how finance leaders in global enterprises can finally automate their complex, labor-intensive invoice processes and stay compliant with regulatory change. Our AP automation and invoicing platform helps you achieve a new level of efficiency – in a matter of months – while reducing errors and risks. We bring a unique combination of true automation, complete coverage, and deeper expertise to make it all just happen for our customers. That’s why the world’s most efficient AP departments at thousands of companies rely on Basware to handle over 220 million invoices per year. With Basware, Now it all just happens.™

View original content to download multimedia:https://www.prnewswire.com/news-releases/the-ai-tipping-point-half-of-cfos-will-axe-ai-investment-if-it-doesnt-show-roi-next-year-302303275.html

SOURCE Basware

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Technology

Positive Perception of Term “All-Electric Home” Increases 12 Percentage Points in Recent Years, E Source Survey Finds

Published

on

By

Research from the utilities-focused research, consulting, and data science company shows positive shift in homeowner perceptions of electrification technologies, though cost remains a barrier to fuel-switching. 

BOULDER, Colo., Nov. 14, 2024 /PRNewswire/ — E Source, a utilities-focused consulting, research, and data science company, has shared the results of its 2024 Residential Electrification Survey, including a shift in consumer attitudes toward electrification technologies in residential settings. The independent study, first conducted in 2021, fielded in April 2024 with over 10,000 residential homeowner utility customers in the United States and Canada.  

Designed and administered by the E Source Market Research team, the survey offers findings around: 

Consumer perceptions of electrification technologies: Over three-quarters of respondents believe that electricity is a safer home and appliance fuel source than natural gas, an increase from 2021. Despite shifting perceptions, cost remains a barrier to fuel-switching.Current ownership of electrification equipment: More respondents say they own electric equipment in 2024 compared to 2021, with electric cooktops and smart thermostats reported as the most common electric appliances.Readiness for adoption: While many respondents said they were unlikely to switch fuel sources for most home equipment, 27% expressed interest in taking steps to electrify all their appliances.

In other notable findings, positive perception of the term “all-electric home” increased from 40% in 2021 to 51% in 2024. Additionally, over one-third of respondents would prefer homes with only electric appliances when choosing their next residence, with 63% stating that gas appliances contribute to indoor air pollution, an increase from 51% in 2021.  

However, despite the growing interest in electrification, cost remains the largest barrier to fuel-switching, with 76% of respondents believing that switching fuel sources of any kind in their home appliances would be costly. 

Utilities today are navigating fast-paced technological advancements, transitioning to cleaner energy sources, managing tighter budgets, and looking to meet heightened customer expectations. A systematic and targeted approach to electrification is central to successfully addressing these challenges.

“Electrification holds tremendous potential along with risks. Utilities can realize that potential and mitigate the risks by understanding how to best engage their customers in the energy transition. With in-depth market research like our Residential Electrification Survey, utilities can understand perceptions of electrification to promote the value of new technologies based on customer needs, beliefs, and behaviors,” said Filomena Gogel, President of research and advisory at E Source.  

An overview of the insights is publicly available in a downloadable eBook here. Detailed findings are available in an industry report for members of the Distributed Energy Resource (DER) Strategy Service offered by E Source. 

About E Source 
E Source combines industry-leading research, data science, and consulting to help utilities make and implement better data-driven decisions that positively impact their customers, their bottom line, and our planet. Headquartered in Boulder, Colorado, E Source has teams across the US and Canada. Learn more at www.esource.com.

Media Contact:  
Adarsh Nalam, Director, Solutions Marketing and Communications  
adarsh_nalam@esource.com

View original content to download multimedia:https://www.prnewswire.com/news-releases/positive-perception-of-term-all-electric-home-increases-12-percentage-points-in-recent-years-e-source-survey-finds-302306080.html

SOURCE E Source Companies LLC

Continue Reading

Technology

Ironclad Launches Jurist: an AI-Powered Assistant That Shows its Work

Published

on

By

The conversational AI assistant utilizes purpose-built multi-agent technology that works together to automate legal work, giving legal professionals a singular place to work with all the right tools and information in one seamless experience

SAN FRANCISCO, Nov. 14, 2024 /PRNewswire/ — Ironclad, the leading digital contracting platform for modern businesses, today announced the public launch of a new conversational AI legal assistant, Ironclad Jurist. Jurist allows legal professionals to draft, edit, review, summarize, translate, and answer questions related to modern contracting. Jurist is the only AI-powered assistant purpose-built for lawyers that lets users create and iterate on any legal document with past company precedent, benchmarks, and real-time changes in the legal space—all in an online, fully editable .docx workspace.

Jurist, built on Ironclad’s open-source visual programming platform Rivet, offers users unprecedented transparency into AI decision-making within a contract by displaying agent actions and reasoning, complete with citations in its online research mode. Leveraging industry-leading prompt routing, specialized legal prompt engineering, and a sophisticated retrieval automation generation (RAG) approach that harnesses multiple top-tier LLMs, Jurist is transforming the landscape of AI-assisted legal work.

“Jurist has already eliminated hours of manual review from our document review process. Its intuitive interface lets us easily define our own parameters, transforming tasks like NDA reviews into a streamlined workflow,” said Katelyn Canning, Director and Head of Legal at Ocrolus. “What truly sets it apart is its ability to select the most appropriate AI model for each task behind the scenes, delivering useful results without requiring us to craft intricate prompts. This combination of power and simplicity has made it an indispensable tool for our legal team.”

After a rigorous five-month beta, which included in-house legal teams at companies like Ocrolus and Signifyd, and leading law firms including Gunderson Dettmer, Jurist is now generally available. With Ironclad Jurist, users can:

Perform legal work in one central place: Jurist provides a new surface for lawyers to work with, iterate, draft, edit, research, and ask questions, all within a single environment. Users can directly edit AI outputs—and write prompts for specific sections of documents to fine-tune contract language—in a native .docx editor.Personalize AI outputs with past documents: Jurist produces personalized drafts, reviews, and edits based on the context users provide, including templates and executed agreements.Access the latest legal knowledge from verified online sources: Users can stay current with the ever-evolving legal landscape from the most reputable online legal research sources.Verify actions taken by your team of agents: Jurist explains its decisions in real time and cites sources when answering prompts, empowering users to use what they create with confidence.Work in a responsible, privacy-forward environment: Jurist does not allow companies like OpenAI or Google to retain or train on customer data. Ironclad provides customers with complete enterprise-grade security and holds numerous certifications, including several ISOs. Ironclad is also compliant with GDPR, HIPAA, and the SOC 2 Type II Security Trust Criteria. To learn more about Ironclad’s security certifications, click here.

“Legal is the perfect application for LLMs, because LLMs are exceptionally good at working with unstructured data – which is the lion’s share of the types of documents lawyers work with,” said Ironclad Chief Product Officer Michel Feaster. “We built Jurist to help bridge this gap, and wanted to create something that was congruent with the ways that lawyers are already working. Lawyers need to be able to edit in real-time in one place, or be able to ask questions about specific parts of a contract, or compare and edit groups of documents at the same time. And because Ironclad has been building technology for lawyers and optimizing contracts for 10 years, our AI agents are fine tuned to be best in class at legal editing.”

“Using Jurist has helped give us a singular workplace to drastically speed up many kinds of legal work,” said Zuhair Saadat, Contracts Manager at Signifyd. “For example, performing an MNDA review or drafting custom clauses for an order form typically takes an hour to a day. Using Jurist, we could do this in minutes—in some cases seconds—depending on complexity. If I need to edit the output, translate it, or ask a question about it, I can do that right in the product without leaving. It reduces time spent on these kinds of tasks, saves money on attorney fees, and gives me a leg up. Whatever I’m doing, I never have to start from scratch.”

“We’ve released Jurist as a standalone product, built on Ironclad architecture, because we feel this will benefit the entire legal community—whether they already use Ironclad or not,” said Ironclad President Jeremy Smith. “We are committed to enabling legal teams with the products they need to drive tangible business impact, and we believe Jurist will make a lasting impact on the future of the legal field.”

To learn more about Jurist and try it for yourself, click here.

About Ironclad
Ironclad is the #1 contract lifecycle management platform for innovative companies, powering billions of contracts every year. L’Oréal, OpenAI, and other leading innovators use Ironclad to collaborate and negotiate on contracts, accelerate contracting while maintaining compliance, and turn contracts into critical carriers of operational business intelligence. It’s the only platform flexible enough to handle every type of contract workflow, whether a sales agreement, an HR agreement or a complex NDA. The company is backed by leading investors like Accel, Sequoia, Franklin Templeton, Y Combinator, and BOND. For more information, visit www.ironcladapp.com or follow us on LinkedIn and X.

Media Contact:
Paul Chalker
paul.chalker@ironcladhq.com

View original content to download multimedia:https://www.prnewswire.com/news-releases/ironclad-launches-jurist-an-ai-powered-assistant-that-shows-its-work-302305858.html

SOURCE Ironclad Inc.

Continue Reading

Technology

Tom Atchison Honored as a Most Admired CEO by Denver Business Journal

Published

on

By

GREENWOOD VILLAGE, Colo., Nov. 14, 2024 /PRNewswire/ — National Corporate Housing is thrilled to announce that Tom Atchison, our esteemed Founder and Chief Executive Officer, has been honored with the Most Admired CEO Award by the Denver Business Journal. This prestigious award recognizes leaders in the Denver area who demonstrate exceptional leadership, vision, and community impact within their industries and beyond.

Under Tom’s visionary leadership, National Corporate Housing has achieved significant growth and success while maintaining a strong commitment to ethical business practices and a people-first culture. He has fostered an environment that prioritizes employee development, customer satisfaction, and industry-leading service.

“Tom exemplifies the highest standards of leadership, integrity, and Surprisingly Superior Service,” said Misty Gregarek, President of National Corporate Housing. “Part of what makes National so special is Tom’s incredible talent for identifying potential in people and providing them opportunities to excel. This recognition is a testament to his unwavering dedication to our company’s mission and to making a positive impact on our employees, customers, and the community.”

Tom was recognized along with 20 other executives Wednesday night at an award dinner at the Ritz Carlton in Denver. We congratulate Tom on this well-deserved honor and look forward to continued success under his exceptional leadership.

For media inquiries, please contact:
Heidi Hume, Vice President, Marketing
703-727-9124 | hhume@nationalcorporatehousing.com

About National Corporate Housing: At National, we turn complex temporary housing challenges into seamless solutions. As a global leader in customized corporate housing since 1999, we provide personalized, 360-degree services that ensure your employees feel at home, wherever they are in the world. With our extensive network and local expertise, we make the unfamiliar comfortable, delivering exceptional experiences that transform clients into lifelong partners.

View original content to download multimedia:https://www.prnewswire.com/news-releases/tom-atchison-honored-as-a-most-admired-ceo-by-denver-business-journal-302306087.html

SOURCE NATIONAL CORPORATE HOUSING

Continue Reading

Trending