CEOs and CFOs are strategic partners, but that doesn’t mean they never disagree.

“One of the areas where we see a little bit of friction is with A.I., where we see CFOs being much more cautious with adoption and usage,” says Marko Horvat, a VP in Gartner’s research and advisory practice. I talked with Horvat about Gartner’s new report, “What Matters to CEOs and CFOs Right Now.”

“The best CFOs in the best organizations,” says Horvat, who has been a CFO, controller, and head of financial planning and analysis, “take situations like this one to create constructive tension with CEOs, by addressing and challenging underlying assumptions to create a mutual foundation of understanding.”

Overall, the C-suite execs are aligned on three key priorities through 2023 and 2024: technology, growth, and talent. This comes according to Gartner’s “CEO and Senior Business Executive Survey for 2023,” which includes responses from more than 350 executives.

CEOs and CFOs do tend to agree that A.I. will most significantly affect their business over the next three years. However, it’s most likely not in play yet, according to Horvat. About 80% of the financial functions to include A.I. have done so just in the past two years, the survey found. 

When it comes to generative A.I., boards and chief executives expect C-suite leaders, including the CFO, to protect the company while driving broad use-case adoption. And investors expect new sources of growth and much better margins, which then places pressure on leaders to deliver results, according to Gartner.

Top-line growth

Speaking of growth, 45% of the CEOs surveyed rank growth among their top three strategic priorities, down from 53% in 2022. Meanwhile, 62% of finance chiefs put it in their top three, up from 59%.

“This speaks to CFOs having spent the last several quarters focusing on cost cutting and efficiency in reaction to, and preparation for, an economic downturn,” Horvat says. “As those initiatives have matured, CFOs are focusing more on top-line growth to enhance profitability.”

McDonald’s is a company where the CFO sees marketing as a growth center, not a cost center. During the fast-food giant’s Q2 earnings call on July 28, Ian Borden pointed to the results of a focus on top-line growth. “Our strong top-line performance across each of our segments drove adjusted earnings per share of $3.17 for the quarter, an increase over the prior year of 25% in constant currencies,” said Borden, adding that it also helped operating margins.

According to Horvat, profitable growth through capital responsiveness will require CFOs to “ruthlessly” prioritize projects in alignment with strategic business priorities, make significant changes to where capital is allocated, and shift capital from low-value to high-value uses.

Regarding talent, CEOs rank workforce issues as the second-most-pressing priority for their companies, while CFOs rank it fourth. According to Horvat, CFOs have been “focusing on reviewing the competencies and capabilities of talent as part of their overall digital transformation,” and most CEOs’ focus is “beyond talent as it relates to strategy,” but “as that gets settled, the focus then moves towards organization structure and the execution of the transformation strategy.”

Whatever “constructive tension” CFOs and CEOs must power through, it’s because they ultimately have the same goal in mind: to push their business forward.

Sheryl Estrada
sheryl.estrada@fortune.com

Leaderboard

Greg Ethridge was named CFO at Canoo (Nasdaq: GOEV), an electric vehicle company, succeeding Ken Manget, effective immediately. Manget was hired as CFO at the company in January 2023. Canoo did not give a reason for his departure. Ethridge, a member of Canoo's board of directors since 2020, agrees to resign from his seat by the end of the year. Ethridge previously served as president, chief operating officer and a director of Hennessy Capital Acquisition Corporation IV, V and VI. He also held director or executive positions at Motorsports Aftermarket Group, MatlinPatterson Global Advisers LLC, FXI Holdings Inc., Gleacher and Company, Imperial Capital LLC, Jefferies and Company, Inc., as well as other boards and investment firms.

Pete Graham was named CFO at Sallie Mae (Nasdaq: SLM), formally SLM Corporation. Graham will join the company on Sept. 18 as an executive vice president and will officially assume the role of CFO on Oct. 27. He succeeds Steve McGarry, who entered into a retention agreement with the company earlier this year. After Oct. 27, McGarry will then remain with the company as an executive vice president consistent with the terms of his retention agreement, according to Sallie Mae. Graham brings more than 30 years of experience, most recently serving as CFO for PRA Group. He was at General Electric for more than a decade where he held roles including CFO for GE Commercial Distribution Finance and GE Capital Markets. Before GE, Graham led audit and advisory teams at KPMG LLP. 

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Big deal

A new report by Pew Research Center found that, overall, 52% of Americans say they feel more concerned than excited about the increased use of A.I., up 14 percentage points since December 2022, when 38% expressed this view. Just 10% say they are more excited than concerned. Meanwhile, 36% say they feel an equal mix of these emotions.

However, there are several use cases for A.I. where the public sees a more positive than negative impact. For example, 49% say when people want to find products and services they are interested in online, A.I. helps more than hurts. In contrast, public views of A.I.’s impact on privacy are much more negative.

There are some differences when it comes to age. Sixty-one percent of adults ages 65 and older are mostly concerned about the growing use of A.I. in daily life, while 4% are mostly excited. For ages 18 to 29: 42% are more concerned and 17% are more excited. Pew's findings are based on a survey of U.S. adults conducted from July 31 through Aug. 6 with a total of 11,201 respondents.

Going deeper

"What Jobs Will AI Replace? Not Those Requiring a Human Touch," a Wharton Business Daily podcast episode featuring marketing professor Stefano Puntoni, explains how automation is beneficial to the bottom line, but it can’t replace the unique qualities that consumers crave in some products and services.

Overheard

"My biggest takeaway is that authenticity is a skill that, over time and through experience, can be developed—and that women can indeed succeed by being themselves."

—Samantha Dewalt is the managing director of Lehigh@NasdaqCenter, an education-industry partnership between Lehigh University and the Nasdaq Entrepreneurial Center. In a Fortune opinion piece, Dewalt details her research and interviews to probe whether women leaders in tech have managed to remain true to themselves, and if so, how. She also sought insight into why the field has largely failed to attract and retain women in leadership positions.