CFOs Face Mounting Pressure to Prove AI ROI Amid Governance Risks

Finance Leaders Face Mounting Pressure to Prove AI ROI

This tension is occurring on a global scale. In the United States, United Kingdom, Australia, and India, finance leaders are struggling to balance the mandate to modernize processes with the operational reality of managing AI agents. In Australia specifically, 88% of finance leaders report career pressure to prove the value of AI investments, while only 12% of organizations prioritize governance over speed, according to a separate report titled Agents of Change: How the Race to Deploy AI Agents is Outrunning Financial Governance.

The Governance and Accountability Gap

Despite the rapid integration of AI into key operations—with 93% of finance chiefs reporting that their organizations now use AI across multiple functions—internal controls are failing to keep pace. Avalara’s survey of 1,505 finance leaders found that 30% of companies have not updated their internal controls within the last year to account for AI-driven actions.

Furthermore, accountability for potential AI errors remains unclear. In the broader survey, 23% of respondents indicated that responsibility for a significant mishap would be unclear or lie with no one. This lack of clear oversight is compounded by a deficiency in technical expertise; 76% of respondents stated their organizations lack the in-house finance expertise necessary to understand how their AI agents operate, often forcing a reliance on IT departments or external vendors.

Challenges in Auditability and Transparency

A primary concern for CFOs is the ability to explain AI decision-making to regulators and auditors. Data shows that 44% of finance leaders are only somewhat confident they could explain the actions of an AI agent to an auditor. This lack of transparency is a critical hurdle, as only 28% of organizations currently require documented audit logs detailing how their AI agents reach specific decisions.

The challenge is underscored by the following findings regarding enterprise-wide AI governance:

• Conflicting Priorities: 59% of CFOs cite the struggle to balance rapid deployment with risk management as their top challenge in developing AI governance frameworks.
• Visibility Issues: 43% of finance leaders point to insufficient visibility into how AI tools are used across their organizations.
• Incident Response: 46% of surveyed firms report that their AI incident response plans are either untested or still in development.

The Shift Toward Responsible Scaling

While 38% of finance leaders report deriving ROI “at scale” from AI agents, 50% state that their measurable returns remain limited, and 12% report no clear ROI. Industry experts suggest that the path forward requires a shift from simple adoption to a more disciplined architecture.

Speed without accountability creates new forms of risk, and speed without rethinking workflows limits ROI, said Avalara CEO Hugo Sarrazin. Experts emphasize that companies should prioritize the use of verified, domain-specific data and ensure that governance and accountability are built into the architecture before, rather than after, the launch of AI agents.

As finance functions continue to adopt tools for tasks ranging from financial planning and budgeting to data analysis, The AI Journal notes that CFOs are increasingly being placed at the center of efforts to bring necessary discipline to enterprise-wide AI strategies. With global AI spending projected to reach $2.6 trillion this year, the demand for audit-ready documentation and transparent, explainable AI workflows is expected to become an essential requirement for sustainable adoption.