4 Questions CFOs Need to ask Before Q3

Data from CFO surveys identifies four trends and priorities that finance leaders need to address before the second half of the year.

In CFO.com's most recent survey, the Q2 2023 Outlook Survey, CFOs noted their confidence in their companies and the economy, a desire to cut costs, and the need to incorporate technology into their workflows and create positive work environments. During April, CFO‘s newsletter The Balance asked its finance executive readers about their approaches in those areas. As the results showed, some companies are farther along than others in achieving their goals; some, it appears, have not even broached these subjects in discussions among members of the C-suite. Following are the poll results and questions, and why these topics are worth some examination by CFOs and their executive colleagues.

1. Optimism Reality Check

The second-quarter CFO Outlook Survey notes that CFO confidence is very high, despite widespread economist predictions of a recession in 2023. The Balance poll on readers’ confidence levels in the April 5 newsletter had a similar finding. Over half (53%) of respondents at the start of the second quarter said they were optimistic about their organisation’s performance over the next six months; 17% were not optimistic and 16% neutral.

Finance executives should always beware of the danger of overconfidence. Be sure the C-suite checks its confidence level against reality as the year progresses.

2. Develop an AI Timeline

Whether it’s ChatGPT or the numerous specialised artificial intelligence (AI) chatbots on the market, the latest technological disruption has garnered much attention in finance. The industry is still in its infancy, with companies, big-name investors, and solutions still in the early stages of development.

More than two-thirds (69%) of all executives in the CFO Outlook Survey said they plan on increasing AI use this year. The Balance’s email poll from April 26 had readers detail their timeline for incorporating AI. While The Balance subscribers seem slightly more cautious around AI, the interest in what it can do for corporate finance is high.

Read the full article at CFO.com