Apr 22, 2025 | Insights
Why Your Next Financial Executive Needs to Speak AI
Emerging and middle market businesses are facing a perfect storm: a shrinking accounting workforce and rising demands for more timely and accurate financial reporting & decision support. Since 2020, over 300,000 accountants have left the profession, and new accounting grads aren’t filling the gap. With fewer professionals entering the field and increasing pressure on finance functions, many companies are turning to AI as a solution.
AI Tools: Accessible Solutions for All Businesses
AI tools, once exclusive to large enterprises, are now accessible to businesses of all sizes. From automating reconciliations to providing predictive insights, AI promises to do more with less – and faster. But the real value lies not in the technology itself, but in how it’s managed and integrated into the business.
The Risks of AI Without Proper Oversight
This is why hiring a financial executive who understands both the potential and risks of AI is essential. Without proper oversight, AI can expose businesses to significant risks, including financial missteps, compliance failures and data privacy breaches. Flawed algorithms or unchecked automation can result in decisions based on inaccurate data, jeopardizing sensitive information and violating privacy regulations. A seasoned finance leader knows how to validate AI-driven outputs, implement strong privacy safeguards and ensure key decisions remain under human control, thereby protecting both the business and its data.
Strategic and Responsible Application of AI in Finance
The right financial executive doesn’t just approve AI adoption; they know how to apply it strategically and responsibly. This means hiring a leader who combines a deep understanding of AI’s capabilities with an inquisitive mindset, a focus on process improvement and a strong orientation toward internal controls. Today’s most effective financial executives balance traditional financial stewardship with a forward-thinking approach. They ask not only, “What can we automate?” but also, “What controls need to be in place?” They apply controls to innovation, ensuring speed and efficiency do not come at the cost of increased business risk.
In today’s fast-changing environment, embracing AI isn’t a luxury. But doing so without the right financial leadership can put your business at risk. For emerging and middle market companies, hiring a finance executive who understands how to leverage AI responsibly is foundational. The future of finance belongs to leaders who can balance innovation with oversight, and who ensure that progress doesn’t come at the expense of increased business risk. The businesses that thrive will be those guided by financial leaders who speak the language of AI, and know exactly when and how to use it.
