Economic and Geopolitical Agenda
Search documents
McKinsey’s CFO: Why finance chiefs shouldn’t hit pause on AI right now
Fortune· 2025-12-08 12:26
Core Insights - CFOs are increasingly using terms like "uncertainty" and "unprecedented" to describe the current economic landscape, reflecting a sense of fatigue with ongoing unpredictability [1] - The focus for CFOs is on taking actionable steps to build resilience in the face of uncertainty, rather than succumbing to inaction [1][2] - There is a significant shift in resource allocation towards technology functions within companies, although uncertainty remains regarding AI's full impact on financial performance [3][4] Financial Strategies - Key questions for CFOs include improving liquidity, operational efficiency, and determining essential versus non-essential investments [2] - Despite uncertainty, it is crucial for companies to review long-standing strategies and seize competitive opportunities, particularly in AI investments [2] - The recommended focus for AI efforts is 80% on productivity for growth and 20% on productivity for efficiency, emphasizing better time utilization rather than headcount reduction [5] Future Outlook - McKinsey's research suggests that by 2030, profound changes in work processes will necessitate a reorganization of value creation and activities [4] - Managing uncertainty effectively involves planning for both positive and negative scenarios, highlighting the importance of a cross-functional approach within the C-suite [6] - The global economic outlook indicates that AI-driven investments are supporting better-than-expected growth, despite underlying demand remaining soft [9]