CFO Mandate Expands as AI, Data, and Risk Reshape Enterprise Decision-Making

Chief financial officers are taking on broader strategic and operational responsibilities as macroeconomic volatility, geopolitical disruption, and artificial intelligence reshape enterprise decision-making, according to a new Economist Impact report sponsored by SAP.

The report, Beyond the Balance Sheet: The New CFO Mandate, is based on a global survey of 480 CFOs across the Americas, EMEA, and Asia-Pacific, conducted between July and August 2025.

One of the key findings of the report was that the chief financial officer’s role has expanded from basic accounting to driving corporate strategy and digital transformation. While AI adoption offers significant gains in efficiency and compliance, CFOs face critical hurdles regarding data fragmentation and a shortage of digitally skilled talent.

The research highlights a strategic shift toward scenario planning and flexible business models to ensure long-term resilience.

Benchmark data from SAPinsider’s The Office of the SAP CFO and the Future of Finance report shows that just over half of SAP-centric organizations (54%) have migrated finance core processes to SAP S/4HANA. This is a key enabler for automation and AI initiatives and indicates that the broader CFO mandate shift is grounded in actual transformation journeys.

CFOs Move Beyond Traditional Finance Roles

The research shows a clear expansion in the CFO remit over the past three years. 87% of surveyed CFOs report being more involved in digital transformation and risk management than they were previously.

As part of the Economist Impact research, Rakesh Kochhar, senior vice-president, group treasurer and global head of auto finance business at Nissan explains, “Twenty-five years ago, the CFO’s job was to prepare and explain the results. Today, CFOs are deeply involved in strategy.”

Despite general budget pressures, IT upgrades remain a top spending priority for CFOs, while areas like geographic expansion and marketing are more likely to be deprioritized, the report said.

This shift reflects mounting expectations for CFOs to act as drivers of enterprise resilience, technology adoption, and strategic investment.

AI Adoption and Value Perception Shift into the CFO’s Core Agenda

Digital transformation, particularly AI adoption, has become a central responsibility for finance leaders. Nearly nine in ten CFOs say they are more involved in digital initiatives than they were just a few years ago, with AI investments increasingly tied to finance efficiency, compliance, and risk management outcomes.

According to the Economist Impact report, CFOs see immense potential for AI to streamline operations, though there is currently a mismatch between perceived value and actual investment.

CFOs see the strongest AI value potential in operational and risk-focused finance functions, particularly regulatory compliance, payables and receivables, fraud detection, and cybersecurity. Regulatory compliance stands out, with 80% of CFOs identifying it as the area where AI could deliver the greatest value, yet only 13% say compliance-related IT spending is a current investment priority.

The research clearly identifies a disconnect between where CFOs see AI value and where IT investment is actually being prioritized, raising concerns that organizations may miss near-term efficiency gains.

For SAP practitioners, this gap underscores the role of integrated finance, risk, and data platforms in helping CFOs translate AI ambition into execution – by aligning compliance, transaction processing, and analytics on a common enterprise foundation.

The SAPinsider 2025 benchmark report found that nearly seven in ten (69%) of organizations are already using AI in finance, reporting faster cycle times and reduced manual effort. This is real evidence that CFOs’ AI ambitions are materializing when embedded in finance systems.

Data and Technical Hurdles

Data readiness remains a limiting factor in CFO-led AI initiatives. The research shows that fragmented systems and delayed access to information continue to slow decision-making and constrain the effective use of AI across finance functions.

Just over half of CFOs, 54%, say that limited access to real-time data undermines their ability to make timely, informed decisions, while 51% point to legacy systems that are too rigid to support modern data and AI requirements. Skills gaps compound the challenge: 37% of finance leaders cite low data literacy or insufficient analytical capabilities within their teams as a material obstacle to progress.

Together, these constraints complicate efforts to move AI from initial use cases into wider business adoption. For SAP leaders, this is where embedded AI within core ERP and finance processes can help – by applying intelligence directly to standardized data, transactions, and workflows, reducing reliance on fragmented tools and accelerating insight at the point of decision.

CFOs Demand Fast AI ROI, Even as Long-Term Gains Take Time

While enthusiasm for AI remains high, CFOs are under pressure to demonstrate returns quickly. 83% of CFOs say AI investments must deliver measurable ROI within 12 months to justify continued funding.

Short-term expectations center on cost savings and productivity gains, while more transformative outcomes such as improved forecasting, faster product innovation, and sales growth are expected to take one to two years or longer.

This creates what the report describes as an “ROI paradox,” where CFOs acknowledge AI’s long-term value but are constrained by near-term financial scrutiny.

SAPinsider research also highlights that nearly half of organizations are prioritizing automation of the financial close, yet close cycles still often exceed eight days.

For SAP leaders, this dynamic reinforces the value of embedded AI within core ERP and finance processes, where measurable efficiencies can be delivered quickly while laying the data foundation for longer-term transformation.

What This Means for SAPinsiders

The CFO has become a central transformation orchestrator. Finance leaders are now shaping digital strategy, risk posture, and AI investment decisions. For large organizations, this means ERP, data, and AI programs increasingly require CFO sponsorship and cross-functional alignment.

Technology and data readiness now constrain CFO ambition. CFOs increasingly see AI and digital transformation as strategic imperatives, but fragmented data, legacy systems, and skills gaps limit execution. This elevates the role of integrated ERP, data, and analytics platforms – where SAP can help standardize data, enable real-time insight, and support scalable AI adoption across large enterprises.

AI initiatives will be judged on near-term financial proof. CFOs expect measurable returns from AI within tight timeframes, favoring use cases tied to compliance, efficiency, and productivity. SAP has positioned SAP Cloud ERP and embedded AI as core to enterprise modernization. This approach, reflected in its recent strategy to help organizations in Africa use cloud-native ERP and AI to improve resilience and operational insight, reinforces how intelligent ERP platforms can support CFOs in balancing short-term ROI with long-term transformation.