U.S. companies are increasingly prioritizing automation and artificial intelligence (AI) amid persistent inflation, according to The CFO Survey, a collaboration between Duke University’s Fuqua School of Business and the Federal Reserve Banks of Richmond and Atlanta.
The survey, which closed on June 3, included responses from approximately 450 financial executives. Nearly two-thirds of Chief Financial Officers (CFOs) reported that their companies have a strategic priority to automate tasks typically performed by employees. Among firms planning to automate in the next 12 months, a majority expect to implement AI for various tasks.
John Graham, finance professor at Duke University and academic director of the survey, stated: “CFOs say their firms are tapping AI to automate a host of tasks, from paying suppliers, invoicing, procurement, financial reporting, and optimizing facilities utilization.” He added that companies are also using AI tools like ChatGPT for generating creative ideas and drafting job descriptions, contracts, marketing plans, and press releases.
Over the past year, nearly 60 percent of companies have implemented software or technology to automate tasks previously completed by employees. This figure rises to 84 percent among large companies. These firms cite increased product quality (58 percent), increased output (49 percent), reduced labor costs (47 percent), and substitution for workers (33 percent) as primary benefits of automation. Specifically, 37 percent of these firms have already implemented AI.
Looking ahead, use of AI is expected to grow further. Among the businesses planning to automate in the next year, 54 percent intend to use AI for tasks currently performed by employees; this percentage increases to 76 percent among large firms.
Despite these advancements in automation and AI adoption, U.S. CFOs continue to express concerns about monetary policy (interest rates), inflation, and challenges in finding and retaining suitable employees. Additionally, 57 percent of respondents anticipate higher-than-normal price increases for their products this year due to ongoing inflationary pressures.
CFO optimism remains moderate with expectations for real GDP growth dipping slightly from 2.2 percent last quarter to 1.8 percent over the next 12 months. Notably, nearly one-third of CFOs indicated that uncertainty surrounding the upcoming election has led their companies to postpone or cancel investments.
The CFO Survey provides valuable insights into corporate strategies and economic outlooks. Detailed results can be accessed at www.cfosurvey.org.
