Finance departments embrace artificial intelligence (AI) at unprecedented rates, yet fewer than one in five teams deliver measurable returns on their AI investments. What’s causing this disconnect between adoption and results? In a recent Human Capital Gains episode, Gary Lamach sat down with Tom Hood, executive vice president of business engagement and growth for the AICPA, to explore the critical barriers preventing finance teams from realizing AI’s full potential.
As one of Accounting Today’s top 100 most influential people in accounting, Hood brings decades of experience helping finance professionals navigate technological change. His insights reveal that successful AI implementation requires choosing the right tools and preparing your people for change.
The Mindset Barrier: Why Finance Teams Resist AI Implementation
According to Hood, the biggest obstacle to AI adoption in finance is psychological rather than technical. “The biggest piece is mindset,” Hood explains. “When finance introduces AI, there are plenty of finance people who are worried about… ’Is this going to replace my job?’”
This fear-based resistance creates a self-fulfilling prophecy. Without proper context and preparation, finance professionals often “slow walk” any technological change, regardless of its potential benefits. The solution lies in addressing these concerns proactively through what Hood calls the “outside-in perspective.”
The Power of External Context
Hood’s team has developed a presentation called “Riding the Waves of Change,” based on philosopher John Kabat-Zinn’s wisdom: “You can’t stop the waves, but you can learn how to surf.” This approach provides finance teams with industry trends and research that helps them understand change as an opportunity rather than a threat.
“[Most finance teams] don’t have an outside-in perspective of the world. So when their internal leader says we’re going to start using AI, they’re going, ‘Oh my god, they’re coming after my job,'” Hood notes.
The results demonstrate clear success. Hood’s team has delivered approximately 50 presentations, with more than 40 producing noticeable shifts in team attitude and accelerated change journeys.
The 80/20 Rule: People Over Technology
Hood referenced groundbreaking research that he conducted with KPMG, which revealed a crucial insight: success depends 80% on people and only 20% on tools. Within that 80%, roughly 36% is mindset, followed by skillset development.
“If you start leading with getting people in a growth mindset, then begin to upskill them with the types of skills they need to deploy AI properly, then they have confidence that you’re actually trying to upskill them,” Hood explains. This approach covers approximately 60% of success factors.
The Mindset, Skillset, Toolset Framework
Many organizations approach AI implementation backwards, starting with tools and scrambling to achieve ROI. Hood advocates for a different sequence:
- Mindset: Establish a growth-oriented perspective.
- Skillset: Develop necessary capabilities.
- Toolset: Implement technology solutions.
This framework ensures that teams are prepared to leverage AI effectively rather than resist it.
The Evolving Role of the CFO in AI Implementation
COVID-19 dramatically expanded the modern CFO’s role. Hood observed this change firsthand at the recent Gartner CFO Conference, where 3,000 CFOs demonstrated their evolution from traditional financial stewards to strategic business partners.
“The CFOs have had to upskill and reskill and think differently about their role,” Hood notes. “They’re now like a co-pilot of the business next to the CEO.” This expanded mandate includes:
- Strategic planning and forecasting.
- Digital transformation leadership.
- Cross-functional collaboration.
- Predictive analytics implementation.
The Ripple Effect Throughout Finance
This CFO evolution pulls entire finance organizations upward. Controllers, FP&A professionals, and other finance team members must upskill proportionally to support their CFO’s expanded strategic role. Hood notes that “the number one way to get to the CEO office now is the CFO,” highlighting the profession’s growing strategic importance.
The T-Shaped Professional Model for Finance Teams
Hood’s T-shaped professional model addresses the need for finance professionals to develop both deep technical expertise and broad cross-functional skills. The model consists of:
The Vertical Bar: Deep Technical Knowledge
- Advanced accounting and financial analysis.
- Data systems expertise (ERP, CRM, financial systems).
- Regulatory compliance and controls.
The Horizontal Bar: Boundary-Crossing Skills
- Strategic and critical thinking.
- Communication and storytelling.
- Collaboration across business functions.
- Business acumen and model understanding.
- Agility and adaptability.
“You take that big vertical of deep technical accounting and data knowledge and add a boundary crossing bar on the top,” Hood explains. This combination enables finance professionals to function as true business partners rather than just number crunchers.
Employee-Led Change: Empowering Ground-Up Innovation
Successful organizations empower employees to drive change rather than issuing top-down AI mandates. Hood shares the example of a CFO who implemented a “shark tank” approach to AI innovation, resulting in over 300 ideas, which exceeded their initial ROI expectations.
“Once they knew that we could now start to eliminate the soul-crushing work that they have to do every day, suddenly they’re saying, ‘I can get rid of that stuff? Then I’m all in,'” Hood explains. This approach works because it addresses real pain points while empowering employees to be solution creators.
The Pilot-First Approach
Successful organizations implement small pilots to test and refine AI applications instead of “big bang” implementations. This methodology allows teams to:
- Pressure test ideas in low-risk environments.
- Build confidence through early wins.
- Scale successful implementations gradually.
- Maintain human oversight and control.
Essential Skills for Business Impact
When asked about the most critical skills for business impact, Hood identified three key areas:
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Professional Credentialing: The CGMA (Chartered Global Management Accountant) credential focuses on real-world scenarios rather than traditional multiple-choice testing. This approach develops strategic thinking alongside technical competence.
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Strategic and Critical Thinkings: “Strategic and critical thinking is always number one, no matter who we poll,” Hood emphasizes. This skill enables finance professionals to interpret data proactively and provide forward-looking insights to business leaders.
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Storytelling and Communication: Modern finance professionals must translate complex financial data into compelling narratives for non-financial stakeholders. This skill bridges the gap between technical expertise and business impact.
Key Takeaways for Finance Leaders
- Prioritize mindset over tools: Address employee concerns and fears before implementing AI technology.
- Invest in upskilling: Focus on developing both technical and soft skills to support AI deployment.
- Embrace the expanded CFO role: Prepare for strategic partnership responsibilities beyond traditional finance functions.
- Develop T-shaped professionals: Combine deep technical expertise with broad business acumen.
- Empower employee-led change: Allow teams to identify and solve their own pain points with AI.
- Start with pilots: Test AI applications in small, controlled environments before broad deployment.
- Focus on strategic thinking: Develop the ability to provide forward-looking insights and predictions.
- Master storytelling: Learn to communicate financial insights effectively to diverse stakeholders.
The Future of Finance: Business Partnership and Growth
When Hood answers the question “The future of finance is…”, he responds: “being a business partner to the business.” This vision shows the profession’s evolution from reactive reporting to proactive strategic guidance.
The change goes beyond adopting new technologies—it’s about fundamentally reimagining the role of finance in driving business success. As Hood notes, finance professionals are “downright excited” about these changes, though they often need community support to navigate the rapid pace of change.
Conclusion
Finance leaders can achieve successful AI implementation by doing more than selecting the right technology. Organizations must fundamentally shift how they approach change management, starting with mindset and skillset development before introducing new tools.
Tom Hood’s insights reveal that the most successful finance teams are those that view AI as an opportunity for growth rather than a threat to job security. By focusing on upskilling, empowering employee-led innovation, and developing T-shaped professionals, finance organizations can position themselves to adopt AI and leverage it for meaningful business impact.
Finance teams that can bridge the gap between technical expertise and strategic business partnership will own the future. Those who master this balance will survive the AI revolution and lead it.
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