CFOs brace for higher AI costs through 2027
Most finance chiefs expect AI costs to spike, putting increased pressure on efforts to track and manage spending on the technology, Deloitte found.
Finance chiefs anticipate a surge in artificial intelligence (AI) costs, intensifying the burden on finance teams tasked with monitoring and controlling expenditures on the technology, according to a recent Deloitte survey. The accounting firm identified several hurdles that complicate AI cost management for finance professionals.
These obstacles encompass regulatory and compliance ambiguity, convoluted cloud and vendor billing for AI computational expenses, and the challenge of aligning AI usage metrics with enterprise resource planning and financial systems.
When queried about their preferred method for approving substantial AI and technology investments, 66% of the 1,434 finance leaders surveyed opt for an internally driven process that emphasizes measurement. Of this group, 27% adhere to a "stage-gate" process, wherein funding is initially allocated for a pilot project, with supplemental financing contingent upon meeting predefined objectives at each stage.
A further 25% rely on a formal capital approval mechanism that mandates quantified return on investment and a comprehensive business case.
However, approximately a quarter of the respondents reported that company directives from the executive team or the board are the primary catalyst for their organization's technology investment choices, with little to no structured process in place to gauge the value of such projects. The survey reveals that finance departments are increasingly involved in technology decision-making.
Notably, 54% of finance leaders stated they spearhead enterprise AI and technology capital-allocation decisions, while 48% oversee AI and technology spending and cost controls, as per Deloitte's findings. Ed Hardy, U.S. finance services leader at Deloitte, emphasized in a press release that the CFO mandate is broadening to encompass shaping enterprise investment strategies, governance, and the creation of value from AI and technology.
The survey encompassed finance leaders from a diverse array of companies, including those with annual revenues surpassing $1 billion, across 26 countries.
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