{"id":17090,"date":"2023-12-12T18:08:20","date_gmt":"2023-12-12T18:08:20","guid":{"rendered":"https:\/\/www.sage.com\/en-gb\/blog\/?p=17090"},"modified":"2025-05-07T14:54:35","modified_gmt":"2025-05-07T13:54:35","slug":"generative-ai-risk-opportunity-saas-cfos","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-gb\/blog\/generative-ai-risk-opportunity-saas-cfos\/","title":{"rendered":"Risk and opportunity in generative AI: Tips for SaaS CFOs"},"content":{"rendered":"<header class=\"entry-header has-dark-background-color entry-header--has-illustration entry-header--has-illustration--generic\">\n\t<div class=\"container\">\n\t\t<div class=\"entry-header__row row align-center\">\n\t\t\t<div class=\"col col-lg-7 col-xlg-6 entry-header__content\">\n\t\t\t\t\t\t\t<div class=\"component component-single-header\">\n\t\t\t\t\t\t\t\t\t\t<div class=\"entry-header__misc text--subtitle text--uppercase text--small\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/category\/money-matters\/\" class=\"entry-header__link\">Money Matters<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t<div class=\"entry-title-wrapper\">\n\t\t\t\t\t<h1 class=\"entry-title\">\n\t\t\t\t\t\tRisk and opportunity in generative AI: Tips for SaaS CFOs\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t<p class=\"entry-header__description\">\n\t\t\t\t\t\t\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\t<div class=\"single-post-details container\">\n\t\t<div class=\"col\">\n\t\t\t<span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2023-12-12T18:08:20+00:00\">12 December, 2023<\/time><\/span><span class=\"reading-time\"> min read<\/span>\n\t\t<button\n\t\t\ttype=\"button\"\n\t\t\tclass=\"social-share-button button button--icon button--secondary js-social-share-button\"\n\t\t\tdata-share-title=\"Risk and opportunity in generative AI: Tips for SaaS CFOs\"\n\t\t\tdata-share-url=\"https:\/\/www.sage.com\/en-gb\/blog\/generative-ai-risk-opportunity-saas-cfos\/\"\n\t\t\tdata-share-text=\"Please read this interesting article\"\n\t\t>\n\t\t\t<span class=\"social-share-button__share-label\">Share<\/span>\n\t\t\t<span class=\"social-share-button__copy-label\" hidden>Copy Link<\/span>\n\t\t\t<span class=\"social-share-button__copy-tooltip\" aria-hidden=\"true\" hidden>Copied<\/span>\n\t\t<\/button>\n\n\t\t\t\t<\/div>\n\t<\/div>\n<\/header>\n\n\n<div class=\"wp-block-post-author has-dark-background-color alignfull\">\n\t<div class=\"container\">\n\t\t<div class=\"col\">\n\t\t\t\t\t\t\t<div class=\"co-authors\">\n\t\t\t\t\t\n\t\t<div class=\"entry-author-wrapper\">\n\t\t\t<a class=\"entry-author\" href=\"https:\/\/www.sage.com\/en-gb\/blog\/author\/david-appel\/\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"40\" height=\"40\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/10\/David-Appel-headshot-2023-1.jpg\" class=\"entry-author__image\" alt=\"david-appel-portrait\" \/>\t\t\t\t<span class=\"entry-author__name\">David Appel<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n<p class=\"\">As a CFO, one tiny mistake in your department can create a cascade of problems. SaaS finance is a tightrope walk of delicately balanced processes and workflows.&nbsp;<\/p>\n\n\n\n<p class=\"\">That\u2019s made some finance leaders hesitant to adopt cloud software with generative AI. <\/p>\n\n\n\n<p class=\"\">This hesitation comes at a real cost since generative AI is one of the most powerful accounting tools currently available for finance teams.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"\">In this article, we\u2019ll help you gain an understanding of generative AI for SaaS finance, identify potential risks associated with this new technology, and explain how cloud AI tools can transform your department\u2019s productivity and boost your organisation\u2019s cash flow. <\/p>\n\n\n\n<p class=\"\">Here&#8217;s what we cover:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"#understanding\">Understanding generative AI for SaaS finance<\/a><\/li>\n\n\n\n<li><a href=\"#identifying\">Identifying the potential risks associated with generative AI<\/a><\/li>\n\n\n\n<li><a href=\"#the\">Unveiling the opportunities in generative AI for SaaS CFOs<\/a><\/li>\n\n\n\n<li><a href=\"#final\">Final thoughts<\/a><\/li>\n<\/ul>\n\n\n\n<p class=\"\"><div class=\"single-cta\">\n\t<a\n\t\tclass=\"button button--primary gate-598add71-2024-4fc8-9366-3507dfcd2151\"\n\t\trole=\"button\"\n\t\tdata-button-location=\"content_area\"\n\t\thref=\"#gate-598add71-2024-4fc8-9366-3507dfcd2151\"\n\t>Download your free copy of Fast close. Faster insights, and discover how financial professionals are closing the books faster with automation<\/a>\n<\/div>\n<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"understanding\">Understanding generative AI for SaaS finance<\/h2>\n\n\n\n<p class=\"\">At this point, it\u2019s probably safe to say you\u2019ve heard of AI. <\/p>\n\n\n\n<p class=\"\">In a nutshell, it focuses on training software to be able to perform tasks that would ordinarily require a human.&nbsp;<\/p>\n\n\n\n<p class=\"\">Examples of automated processes in finance include screening for transactional anomalies to detect fraud, or automatically routing an invoice through the proper approval chain.<\/p>\n\n\n\n<p class=\"\">Generative AI takes that one step further. <\/p>\n\n\n\n<p class=\"\"><a href=\"https:\/\/www.sage.com\/en-gb\/sage-business-cloud\/intacct\/\">Cloud accounting software<\/a> equipped with generative AI uses machine learning (ML) algorithms to not only work with and analyse data but also produce original content from data inputs, including:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Reports and financial statements<\/li>\n\n\n\n<li>Customisable role-based dashboards<\/li>\n\n\n\n<li>Revenue recognition readouts<\/li>\n\n\n\n<li>Detailed &#8216;if-then&#8217; SaaS forecasts, and much more<\/li>\n<\/ul>\n\n\n\n<p class=\"\">Embracing generative AI allows SaaS CFOs to drastically cut the cost and hassle involved in all kinds of accounting processes.&nbsp;<\/p>\n\n\n\n<p class=\"\">But most importantly, it acts as a valuable partner that can offload tedious repetitive tasks so you and your team can focus on strategic initiatives rather than busy work.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">The significance of generative AI for SaaS accounting<\/h3>\n\n\n\n<p class=\"\">The generative AI revolution has permeated various industries, including SaaS finance. <\/p>\n\n\n\n<p class=\"\">This ground-breaking technology opens up new opportunities for SaaS CFOs to rapidly analyse and interpret vast amounts of data.&nbsp;<\/p>\n\n\n\n<p class=\"\">This is important because your role has slowly merged with that of the data scientist\u2013you\u2019re responsible not just for crucial financial processes but for working with massive amounts of customer and financial data as well.<\/p>\n\n\n\n<p class=\"\">By harnessing generative AI, CFOs can gain valuable insights into customer behaviour and preferences, enabling them to keep churn to the bare minimum. <\/p>\n\n\n\n<p class=\"\">For recurring revenue SaaS companies, there\u2019s almost nothing more crucial than managing churn and maximising your annual and monthly committed revenue.<\/p>\n\n\n\n<p class=\"\">Generative AI&#8217;s emergence marks a pivotal moment for SaaS CFOs seeking to optimise their financial operations. <\/p>\n\n\n\n<p class=\"\">We\u2019ll dive deeper into its robust functionality in a moment.&nbsp;<\/p>\n\n\n\n<p class=\"\">But first, let\u2019s examine a few potential risks involved with these tools.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"identifying\">Identifying the potential risks associated with generative AI<\/h2>\n\n\n\n<p class=\"\">To ensure a smooth transition into the generative AI era, SaaS CFOs need to proactively identify and mitigate potential risks. Your financial processes are at the heart of your company\u2019s success\u2013you can\u2019t take the risk of an accounting mishap lightly.<\/p>\n\n\n\n<p class=\"\">Below are some of the main risks SaaS CFOs should be aware of when contemplating automation, along with some tips for solving them.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">A lack of sufficient training data volume might result in biased outputs<\/h3>\n\n\n\n<p class=\"\">Cloud accounting tools with AI and generative AI require very large datasets for initial training. This helps the software get acquainted with your data in order to work with it accurately and effectively.<\/p>\n\n\n\n<p class=\"\">However, if you only have a small pool of existing historical data, you run a high risk of skewing or biasing your outputs. For instance, say you\u2019re a newer company making a hard marketing push for one specific target audience.<\/p>\n\n\n\n<p class=\"\">If you trained your software on your data and then asked it to produce a forecast, you would have a hard time obtaining usable results. Instead of reflecting objective reality, your forecast will reflect the highly biased data you used to create it. Usable forecasts require objective and well-rounded data.&nbsp;<\/p>\n\n\n\n<p class=\"\">To make the most of these technologies, you need to have relatively large pools of data to work with.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Interruptions in subscription or billing workflows could trigger churn waves<\/h3>\n\n\n\n<p class=\"\">One of the most common sticking points around automation for SaaS CFOs is a fear that it will result in customer churn increases. <\/p>\n\n\n\n<p class=\"\">Since many SaaS users are on a revolving monthly payment schedule, any interruption in that billing flow could cause large volumes of churn.<\/p>\n\n\n\n<p class=\"\">Maybe you switch to AI and it causes a problem with your company\u2019s ability to process payments, causing involuntary churn. Maybe it sends customers bills for the wrong amount, and they get fed up and leave.<\/p>\n\n\n\n<p class=\"\">These risks are real. <\/p>\n\n\n\n<p class=\"\">Before purchasing a cloud accounting solution, check that the vendor has served many clients with your precise needs and that they experienced no service interruptions as a result of the product.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Faulty AI products can produce hallucinations<\/h3>\n\n\n\n<p class=\"\">AI hallucinations occur when a generative AI tool produces data or a statement that is incorrect or misleading. In a perfect world, this would never happen. Unfortunately, it does.<\/p>\n\n\n\n<p class=\"\">If someone casually playing with ChatGPT encounters a hallucination, it\u2019s no big deal. <\/p>\n\n\n\n<p class=\"\">But if you let an AI hallucination slip into an important revenue forecast, the results could be disastrous and hard to repair. <\/p>\n\n\n\n<p class=\"\">The stakes are high and real.<\/p>\n\n\n\n<p class=\"\">The way to protect yourself from AI hallucinations is to vet your vendor up, down, and sideways: <\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>How long have they been in business? <\/li>\n\n\n\n<li>What\u2019s their reputation like? <\/li>\n\n\n\n<li>What specific product development standards and practices do they have in place to produce trustworthy and compliant products?<\/li>\n<\/ul>\n\n\n\n<p class=\"\">Now we\u2019ve covered the major risks of this technology for SaaS finance, let\u2019s return to its benefits.<\/p>\n\n\n\n<p class=\"\"><div class=\"single-cta\">\n\t<a\n\t\tclass=\"button button--primary gate-598add71-2024-4fc8-9366-3507dfcd2151\"\n\t\trole=\"button\"\n\t\tdata-button-location=\"content_area\"\n\t\thref=\"#gate-598add71-2024-4fc8-9366-3507dfcd2151\"\n\t>Download your free copy of Fast close. Faster insights, and discover how financial professionals are closing the books faster with automation<\/a>\n<\/div>\n<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"the\">Unveiling the opportunities in generative AI for SaaS CFOs<\/h2>\n\n\n\n<p class=\"\">The risks of generative AI shouldn\u2019t scare you away from these tools. <\/p>\n\n\n\n<p class=\"\">Yes, you should definitely proceed with caution. But that\u2019s not the same thing as being afraid\u2013and you shouldn\u2019t be.<\/p>\n\n\n\n<p class=\"\">Let\u2019s look at the other side of the equation. If you embrace this powerful new tech, what rewards can you expect?<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Dynamic scenario forecasting<\/h3>\n\n\n\n<p class=\"\">Forecasting is one of the most important workflows in all of finance. <\/p>\n\n\n\n<p class=\"\">SaaS CFOs need to simulate various scenarios to assess their financial impact and gain insights into different outcomes and courses of action. <\/p>\n\n\n\n<p class=\"\">This helps you make better strategic decisions and identify potential risks so you can steer clear and stay profitable.<\/p>\n\n\n\n<p class=\"\">Accounting software with generative AI uses ML algorithms to produce dynamic forecast models. This means that your forecast models will shift to reflect the changing financial realities in your environment.<\/p>\n\n\n\n<p class=\"\">It\u2019s essentially real-time financial forecasting, and it\u2019s as simple as putting in your starting data and clicking a button.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Automated board packs and capitalisation tables<\/h3>\n\n\n\n<p class=\"\">Creating and distributing board packs before meetings requires a lot of time and hassle when doing it manually.&nbsp;<\/p>\n\n\n\n<p class=\"\">Generative AI can seamlessly create and distribute board packs for meeting attendees.<\/p>\n\n\n\n<p class=\"\">Board packs created with generative AI feature financial storytelling techniques and helpful visual aids to quickly get everyone on the same page.<\/p>\n\n\n\n<p class=\"\">Generative AI can also create detailed capitalisation rundowns. This saves you considerable time, prevents capitalisation errors, and helps you effectively track your performance obligations.<\/p>\n\n\n\n<p class=\"\">Generative AI is helping SaaS CFOs effectively manage investor relations, an important responsibility that has an outsized impact on your profitability.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Robust SaaS metrics analytics<\/h3>\n\n\n\n<p class=\"\">Adopting generative AI allows for effective analysis and tracking of all your key SaaS metrics. This integration provides deeper insights into customer retention, monthly recurring revenue (MRR), and other vital metrics.<\/p>\n\n\n\n<p class=\"\">Leveraging AI capabilities enables the identification of trends and patterns in SaaS performance, empowering CFOs to make real-time and accurate decisions based on SaaS metrics analysis. <\/p>\n\n\n\n<p class=\"\">When you align your strategies with the insights you gain from your metrics, positive business outcomes are much more likely.<\/p>\n\n\n\n<p class=\"\">SaaS metrics integration offers a comprehensive approach to key performance indicator (KPI) management. With accounting automation, you\u2019ll have access to dozens of SaaS metrics continuously updated in real time.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"final\">Final thoughts<\/h2>\n\n\n\n<p class=\"\">Automation tools for SaaS CFOs are not without risk. <\/p>\n\n\n\n<p class=\"\">But when it comes to maximising the effectiveness of your business operations, the positive impacts are simply too large to ignore.<\/p>\n \n<div class=\"single-cta gated-content\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Fast close. Faster insights<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p><!-- wp:paragraph --><\/p>\n<p class=\"\">In this annual report, discover how financial professionals are closing the books faster with automation and learn how you can do the same.<\/p>\n<p><!-- \/wp:paragraph --><\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-598add71-2024-4fc8-9366-3507dfcd2151\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Download the report<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1097994958-1440x810.jpg\" class=\"single-cta__image\" alt=\"Working on employee tasks\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1097994958-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Subscribe to the Sage Advice newsletter<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>Join more than 500,000 UK readers and get the best business admin strategies and tactics, as well as actionable advice to help your company thrive, in your inbox every month.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-b1a63862-3fa0-4a5e-bb67-c76b88bbc6b8\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Subscribe now<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1073797282-1-1440x810.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1073797282-1-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Discover how generative AI presents both risk and opportunity for SaaS CFOs. We offer tips to navigate this dynamic landscape.<\/p>\n","protected":false},"author":1433,"featured_media":16279,"menu_order":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sage_video":false,"post_featured_image_hide":false,"footnotes":""},"categories":[6],"tags":[50,135,159],"business_type":[3],"lilypad":[],"context":[],"industry":[],"persona":[68,71],"imagine_tag":[96,335],"coauthors":[639],"class_list":["post-17090","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-money-matters","tag-ai","tag-business-finances","tag-midsized-business","business_type-medium-sized-business"],"sage_meta":{"region":"en-gb","author_name":"David Appel","featured_image":"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-1473163791.jpg","imagine_tags":{"96":"Medium businesses","335":"SaaS &amp; Software"}},"distributor_meta":false,"distributor_terms":false,"distributor_media":false,"distributor_original_site_name":"Sage Advice UK","distributor_original_site_url":"https:\/\/www.sage.com\/en-gb\/blog","push-errors":false,"_links":{"self":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/posts\/17090","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/users\/1433"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/comments?post=17090"}],"version-history":[{"count":0,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/posts\/17090\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/media\/16279"}],"wp:attachment":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/media?parent=17090"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/categories?post=17090"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/tags?post=17090"},{"taxonomy":"business_type","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/business_type?post=17090"},{"taxonomy":"lilypad","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/lilypad?post=17090"},{"taxonomy":"context","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/context?post=17090"},{"taxonomy":"industry","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/industry?post=17090"},{"taxonomy":"persona","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/persona?post=17090"},{"taxonomy":"imagine_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/imagine_tag?post=17090"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/coauthors?post=17090"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}