78% of CFOs Plan to Increase GenAI Investments Despite Limited ROI

Generative artificial intelligence (GenAI) has become an important tool for CFOs, who view the technology as critical to their organization’s strategic and operational planning.

According to a PYMNTS Intelligence report, “Most CFOs See Limited ROI From GenAI, but Boost Its Investment,” despite the growing reliance on GenAI for medium-impact tasks like financial reporting and data visualizations, many CFOs report limited return on investment (ROI), while many firms with at least $1 billion in annual revenue are committed to expanding their GenAI investments in the next year.

GenAI’s Growing Role

CFOs are turning to GenAI for medium-complexity tasks, such as financial reporting, data visualizations and forecasting. Consider 60% of CFOs said their companies are using GenAI for these tasks, marking a change from earlier this year, when many relied on AI for more routine activities, such as invoice processing or basic data entry.

The proportion of firms using AI for medium-impact functions has risen from 35% in March to 45% in June, suggesting companies are moving beyond basic applications and beginning to integrate AI more strategically into their operations. This wider adoption of GenAI reflects confidence in the technology’s potential to provide value beyond simple task automation.

ROI Remains a Challenge

Despite the increased usage of GenAI, many CFOs report limited returns from their investments. Only 13% of CFOs say they are seeing “very positive” ROI, down from 27% in March. Additionally, 65% of CFOs cite limited ROI as a drawback to implementing AI across their organizations. This decline in ROI sentiment suggests that while CFOs recognize the technology’s potential, they are still grappling with its full impact on their bottom lines.

Firms with more positive ROI are investing more heavily in GenAI. Middle-market companies experiencing strong ROI are increasing their AI budgets by 19%, compared to just 6.2% for those seeing negligible ROI.

But even companies reporting limited ROI are determined to press forward with their AI investments, with 78% of CFOs planning to increase their GenAI budgets next year. This willingness to continue investing, despite mixed results, underscores CFOs’ long-term belief in the technology’s potential.

Future of Full Integration

Concerns over ROI notwithstanding, CFOs are committed to GenAI’s long-term integration. None of the executives surveyed said their organizations would never implement the technology. While 78% plan to increase their GenAI investments, the average increase is nearly 10%.

Firms that have seen positive ROI expect full integration by 2030, while those with lower ROI projections estimate it could take up to 15 years. This gap reflects varying levels of confidence in the technology’s potential, but the overarching trend is clear: GenAI will play a larger role in shaping future strategic decisions.

As companies work through challenges around implementation and ROI, the long-term benefits of GenAI appear promising. CFOs recognize that fully integrating the technology into their operations will not only streamline tasks but also drive deeper insights, improve decision-making, and help companies gain a competitive edge.