How CFOs Harness AI to Steer Strategy, Compliance and Growth

Chief Finance Officers are steering companies through a turbulent operating landscape marked by global economic volatility from shifting tariffs and the cost-of-living crisis, alongside mounting regulatory demands and rapid technological change.

Yet, according to Avalara’s 2025 CFO Pulse Survey, most finance leaders remain poised for growth - even as gaps in AI readiness, trust and organisational alignment threaten to slow their momentum.

The study, run by the agentic tax and compliance leader, surveyed 500 CFOs at companies with 500 or more employees across the UK and US between 9 September and 18 September 2025.

Its findings point to a decisive shift in the finance remit. A majority of respondents (68%) say they are moving beyond a narrow compliance focus to become enterprise growth leaders, and more than three-quarters (76%) believe evolving trade policies are accelerating the transition to an AI-enabled finance structure.

The imperative now is to turn ambition into execution and close the gap between stated AI priorities and practical deployment.

Ross Tennenbaum, President of Avalara, elaborates: “Finance leaders are evolving faster than ever, balancing disruption with opportunity.

“AI lets CFOs move from managing compliance to driving growth, but the real advantage comes from alignment across compliance, insight and strategy.”

From ambition to success

Avalara’s research shows that nearly three-quarters of CFOs express confidence in their team’s ability to adopt AI.

Respondents credit executive sponsorship, skills training and early pilot returns as drivers of progress.

However, a widening disconnect is emerging between innovation narratives and day-to-day operational priorities.

The survey highlights several pressure points:

• Cross border regulation keeps 40% of CFOs up at night but only 14% are investing in AI-powered cross-border compliance platforms
• 37% of respondents view e-invoicing mandates as a top operation strain, yet only 26% say they are fully compliant with those mandates
• Less impactful AI investments like internal GPTs or predictive analytics are taking priority over mission-critical compliance areas

A compliance-first AI path

For CFOs, the immediate challenge is balancing resilience with transformation. Inflation, trade frictions and proliferating rules demand a strong compliance posture and cost discipline, even as competitive dynamics push finance to modernise processes and data flows with AI.

That balancing act requires rigorous risk analysis, clear sequencing and cross-functional collaboration to prioritise the right use cases.

With the right tools and expertise, 68% of finance leaders believe they can lead a full-scale transformation rather than merely manage compliance.

Still, almost a third remain uncertain whether their organisations are truly ready for AI, citing reluctance to change, a shortage of AI skills and insufficient leadership support.

Where AI is already embedded, CFOs report concrete returns in forecasting accuracy, supply chain visibility, cash-flow management and risk mitigation.

Almost one-quarter of AI adopters have fully automated operation, and just over a third have automated select, high-impact areas.

Yet regulatory scrutiny, data integrity concerns and workforce readiness continue to constrain broader rollout.

To build trust and scale responsibly, finance chiefs are prioritising foundational enablers:

• AI education (22%)
• Integrated platforms (21%)
• Automation expansion (20%)
• Regulatory insight (19%)
• Greater executive influence (18%)

Product innovation is expanding the options available to finance teams.

Earlier in October, Avalara announced its AI innovations: Avi Everywhere, MCP Servers and Global Compliance Innovations.

These tools are designed to create greater accuracy and efficiency within tax and compliance - empowering CFOs to execute confidently on strategic AI visions.

Execution remains a journey for many organisations. CFOs are frequently phasing AI adoption, starting with lower-risk domains, standing up governance and oversight frameworks, and proving value through targeted pilots before scaling.

This incremental approach helps finance leaders maintain organisational stability even as they advance transformation - keeping compliance tight while unlocking productivity and insight that can fund further investment.

The throughline from Avalara’s survey is clear: finance is ready to lead, and AI is central to that mission.

The winners will be those CFOs who align ambition with practical, compliance-centric deployment, strengthen trust and skills across the enterprise, and channel AI investment into the highest-impact operational use cases.