Large enterprises have been exploring AI applications for decades. But as the technology becomes increasingly democratised, small and medium-sized businesses (SMBs) are enjoying the benefits of AI projects too. According to new research from SAP Concur, 63% of Chief Financial Officers (CFOs) are investing in cutting-edge technology solutions in 2024 compared to just 33% last year.

Large, well-resourced companies with a high-risk tolerance used to dominate technology investment, while smaller businesses focused on budget tightening. However, in 2024, our report shows that all small firms (250-499 employees) are investing in growth in some way, and 45% are investing heavily.

This coming tech revolution could help SMBs chart a course through economic uncertainty. Small businesses channelling resources towards emerging tech stand to accelerate efficiency, save costs, and seize new growth opportunities. But how exactly can CFOs lead the SMB tech revolution? And how can AI be implemented?

CFOs can invest more in new AI applications

Our data shows that the proportion of CFOs investing in AI has surged from 15% to 51% in the past year. And as AI adoption expands, so does its pool of use cases. Small companies are now implementing AI for a range of strategic applications beyond just cost saving.

Within finance technology, for example, teams are leveraging AI to forecast more accurately (67%), automate mundane tasks (64%), and improve risk management (64%).

Confidence is rising, too. 90% of CFOs said AI was a threat to their teams in our August 2023 survey, which has fallen to 67% in 2024. Fear of displacement seems to have been replaced with anxiety over being left behind by larger organisations – those that are comfortable pursuing transformative AI projects.

As a result, CFOs are partnering with trusted vendors to procure AI tools and add-ons for their tech stacks. Our findings show a close link between AI adoption and the intensity of growth within businesses, and while this does not necessarily imply causation, we can see that companies with a growth mindset are pushing AI adoption faster.

CFOs can accelerate digital transformation projects 

As volatile economic conditions persist, finance leaders say investment in digital transformation has become essential to achieving cost efficiencies.

AI-powered process automation, cost management, and travel and expense management systems could streamline workflows and boost productivity. Here, smaller businesses have an opportunity to get up to speed with scaled organisations by optimising administrative tasks like mileage tracking and generating expense reports.

However, employee experience must guide strategic digital transformation. Our research found that 43% of CFOs cite software ease of use as a top challenge, while 29% cite a lack of scalability.

To ensure successful implementations, CFOs should procure scalable tools that can integrate with the organisation’s existing portfolio and provide robust ease of use. These initiatives tend to earn high rates of employee adoption, a metric that defines the success of any new tech implementation.

CFOs can explore data analytics and reporting tools

58% of the CFOs we surveyed say they work with IT on cost control, aiming to cut wasted spending and streamline outgoings. But this is challenging to achieve. They require data visibility and near-real-time insights – issues that 30% of small and 40% of medium-sized business finance leaders cite as frustrations with their current cost control software.

To improve business agility, CFOs should consider AI-powered tools for analytics and reporting. These systems can improve analysis, policies and processes for professionals across finance, HR and travel.

AI can also be integrated into many existing data analytics projects – it may already be leading to the reclassification of some. CFOs in our survey say they are investing in the same number of overall projects compared to August 2023, but AI investment has risen dramatically. So, where a finance leader might have been tasked to ‘improve business analytics’ in 2023, this same initiative may be framed as ‘improve business analytics using AI’ in 2024.

In 2024, confidence in AI has grown – and SMBs are looking to integrate the tech into many of their existing workflows. As AI becomes more accessible, new applications could transform operations for smaller businesses and place them on a trajectory to scale and rival the large organisations that once enjoyed exclusive access to this technology.

To maximise AI’s value, CFOs can work with IT and partners to manage investments, interrogate their ROI, and boost efficiencies across the organisation – spearheading the SMB tech revolution.