Good morning. CFOs and chief information officers (CIOs) steer technology to meet business needs. That also means justifying large AI investments. But when it comes to measuring the benefits of AI investments, the two C-suite leaders are not on the same page.
A new report by KPMG reveals that more than a third (39%) of CFOs and 49% of CIOs consider the definition of technology ROI to be a contentious area. The findings are based on a survey of 102 CFOs and CIOs and their direct reports.
Not only do they disagree on ROI, but also about who holds primary responsibility for AI and technology investments. Fifty-nine percent of CFOs claim this responsibility, while 61% of CIOs see it as their prerogative—a recipe for a potential power struggle.
The leaders also have different perspectives on whether collaboration works. About 57% of CFOs think collaboration can significantly improve operational efficiency, compared to 37% of CIOs. And just over half of CFOs believe collaboration can enhance risk management, while only 29% of CIOs agree.
“CFOs and CIOs need to collaborate to execute strategy and achieve goals,” Marcus Murph, KPMG U.S. head of technology consulting, said in a statement.
There are some CIOs who do see the value of collaboration. For example, my colleague John Kell recently talked with Kim Anstett, the CIO at Trellix, who said she met with every department at the cybersecurity provider to discuss possible uses for AI agents.
They came up with a massive list—over 100. But Anstett played a role in paring down the list and has begun a few pilots of the technology. “From a strategy perspective, initially we will limit the number of add-ons we purchase,” Anstett told Kell. “We’re looking at it from a cost perspective.”
However, CEOs and boards are placing CFOs at the center of strategic AI investments, especially if it’s big and costly. Also, many companies are seeking tech-savvy finance talent. Of the 1,000 job listings for CFOs in January 2025, 27% included AI in the job description, research by software company Datarails finds.
The ongoing debate over the ownership of business transformation continues, according to Sanjay Sehgal, KPMG U.S. advisory head of markets. “CIOs are focused on building and securing technology, and CFOs on leveraging the infrastructure to refine processes,” Sehgal said in a statement. “Yet, both see themselves as responsible for driving business transformation.”
Open communication, developing a unified strategy, and establishing a common framework and clear definitions of how to measure ROI are among KPMG’s suggestions for CFOs and CIOs to see eye to eye.
What’s your perspective on the CFO-CIO dynamic? Send me an email and let me know.
Have a good weekend.
Sheryl Estrada
sheryl.estrada@fortune.com
Leaderboard
Here are some notable moves this week:
Trisha Gosser was promoted to CFO of Gannett Co., Inc. (NYSE: GCI), effective immediately. Since joining Gannett in 2007, she has led teams across accounting, financial planning, data, and investor relations. Gosser most recently served as the deputy CFO. Previously, she held the role of SVP of finance and investor relations. Prior to Gannett, Gosser held finance roles at Brunswick Corporation and Mitsubishi Electric, managing operations across accounting and tax.
Rick Klenk was promoted to CFO of The Penn Mutual Life Insurance Company (Penn Mutual), effective March 17. Klenk has over 35 years of experience. Most recently, he served as CFO for Life Insurance and Annuities for Penn Mutual. Klenk started his career with Penn Mutual as an actuary and has held leadership roles at Nationwide and Lincoln Financial Group, including corporate chief actuary and chief risk officer.
John Szczepanski was appointed CFO of The Children’s Place, Inc. (Nasdaq: PLCE), a children’s specialty retailer, effective March 31. Szczepanski most recently served as CFO of Vince Holding Corp. Before that, he was the CFO of the global supply chain, brands and lifestyle group at Ralph Lauren Corporation.
Amy Parison was promoted to CFO at Editas Medicine, Inc. (Nasdaq: EDIT), a gene-editing company. Parison succeeds CFO Erick J. Lucera, who is stepping down to pursue an external opportunity, effective March 28. During her time at Editas, she has served in multiple roles including SVP of finance, and VP and corporate controller. Before Editas, Parison served as corporate controller of Rubius Therapeutics and at Vertex Pharmaceuticals, she held several roles in accounting and finance.
Sunit Patel was appointed EVP and CFO of Crown Castle Inc. (NYSE: CCI), a wireless communication infrastructure provider, effective April 1. Patel left his position on Crown Castle’s board of directors on March 17. He previously served as CFO of Ibotta Inc., a mobile technology platform. In 2000, Patel cofounded Looking Glass Networks Inc., a telecommunication transport services company and served as its CFO until 2003. Before that, he was an EVP and CFO of CenturyLink, now Lumen.
Kevin Bradley was promoted to CFO of Alarm.com (Nasdaq: ALRM), a provider of smart home security services. Bradley joined Alarm.com in May 2009 and has served in various accounting and finance roles, including director of financial planning and then VP of financial planning and analysis. He previously worked at Morgan Stanley in New York City.
Bruce Schuman was named CFO of Universal Technical Institute, Inc. (NYSE: UTI), workforce solutions provider, effective immediately. Most recently, Schuman served as CFO for Vacasa, a rental property management company. Before that, he was CFO of Kiavi, a lender to real estate investors. Schuman also held various senior finance leadership roles at Intel Corporation, including CFO of the company's Enterprise Data Center business and Intel Capital.
Big Deal
“5 Ways to Find a New Role at Your Company” is a new report by global consulting firm Korn Ferry. People often think the only way to move to a new role is through a promotion, according to Korn Ferry Advisory principal Frances Weir. Many do not recognize the opportunities that may be available to them internally. “While hiring may appear to be slowing on the surface, it usually just means that opportunities have gone further underground,” Weir says.
Going deeper
Here are four Fortune weekend reads:
“Tesla owners facing insurance hit after wave of vandalism, experts warn” by Alicia Adamczyk
“Elon Musk says he and DOGE found 14 ‘magic money computers’ that create money out of thin air” by Greg McKenna
“Who could succeed David Solomon as Goldman Sachs’ CEO?” by Lily Mae Lazarus
“Billionaire investor Ray Dalio credits all his success to meditation: ‘It gives you a calmness’” by Alexa Mikhail
Overheard
“We are not asking Musk to give up his DOGE initiative, instead we and many top investors are asking for balance as Tesla CEO and DOGE in this key period for Tesla.”
—Dan Ives, a managing director at Wedbush Securities, writes in a Friday morning note to investors. Tesla CEO Elon Musk hosted an all-hands meeting with employees on Thursday night, broadcasted live on the social media platform X. “This was a key moment for Musk and Tesla to show leadership and he did,” Ives writes.