Good morning. CFOs and chief information officers (CIOs) steer technology to meet business needs. That also means justifying large AI investments. But when it comes to measuring the benefits of AI investments, the two C-suite leaders are not on the same page.
A new report by KPMG reveals that more than a third (39%) of CFOs and 49% of CIOs consider the definition of technology ROI to be a contentious area. The findings are based on a survey of 102 CFOs and CIOs and their direct reports.
Not only do they disagree on ROI, but also about who holds primary responsibility for AI and technology investments. Fifty-nine percent of CFOs claim this responsibility, while 61% of CIOs see it as their prerogative—a recipe for a potential power struggle.
The leaders also have different perspectives on whether collaboration works. About 57% of CFOs think collaboration can significantly improve operational efficiency, compared to 37% of CIOs. And just over half of CFOs believe collaboration can enhance risk management, while only 29% of CIOs agree.
“CFOs and CIOs need to collaborate to execute strategy and achieve goals,” Marcus Murph, KPMG U.S. head of technology consulting, said in a statement.
There are some CIOs who do see the value of collaboration. For example, my colleague John Kell recently talked with Kim Anstett, the CIO at Trellix, who said she met with every department at the cybersecurity provider to discuss possible uses for AI agents.
They came up with a massive list—over 100. But Anstett played a role in paring down the list and has begun a few pilots of the technology. “From a strategy perspective, initially we will limit the number of add-ons we purchase,” Anstett told Kell. “We’re looking at it from a cost perspective.”
However, CEOs and boards are placing CFOs at the center of strategic AI investments, especially if it’s big and costly. Also, many companies are seeking tech-savvy finance talent. Of the 1,000 job listings for CFOs in January 2025, 27% included AI in the job description, research by software company Datarails finds.
The ongoing debate over the ownership of business transformation continues, according to Sanjay Sehgal, KPMG U.S. advisory head of markets. “CIOs are focused on building and securing technology, and CFOs on leveraging the infrastructure to refine processes,” Sehgal said in a statement. “Yet, both see themselves as responsible for driving business transformation.”
Open communication, developing a unified strategy, and establishing a common framework and clear definitions of how to measure ROI are among KPMG’s suggestions for CFOs and CIOs to see eye to eye.
What’s your perspective on the CFO-CIO dynamic? Send me an email and let me know.
Have a good weekend.
Sheryl Estrada
sheryl.estrada@fortune.com
This story was originally featured on Fortune.com
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