Good morning. For some time, I’ve been speaking with industry experts and CFOs about ways to implement AI in finance and how to determine a business case for generative AI. But there’s new eye-opening information for companies that haven’t yet come up with an AI plan.
Microsoft’s 2024 Work Trend Index, released on Wednesday in partnership with LinkedIn, finds that, in the last six months, the use of generative AI has nearly doubled, with 75% of global knowledge workers using it. (Knowledge workers are considered professionals in roles like public accountants, engineers, editors, and lawyers.)
In addition, 78% of AI users are actually bringing their own AI tools to the workplace, which is coined “BYOAI.” And this action is without guidance or clearance from leadership. But, employees who are trying to keep up with a fast pace and large volumes of work are leaning on the technology. Microsoft and LinkedIn pointed out that BYOAI isn’t just implemented by Gen Z (85%). It cuts across all generations—millennials (78%), Gen X (76%), and boomers (73%).
Seventy-nine percent of leaders surveyed agree their company needs to adopt AI to stay competitive. However, 59% worry about quantifying the productivity gains of AI.
“While leaders agree AI is a business imperative, many believe their organization lacks a plan and vision to go from individual impact to applying AI to drive the bottom line,” according to the report. “The pressure to show immediate ROI is making leaders inert, even in the face of AI inevitability.”
The findings are based on a survey of 31,000 people across 31 countries, identifying labor and hiring trends from LinkedIn, and analyzing Microsoft 365 productivity signals as well as research with Fortune 500 customers. You can read the full report here.
Although many knowledge workers are eager to get the ball rolling with AI, some employees are hesitant to use the technology. I recently read an article in Harvard Business Review that speaks to this. It’s titled, “For Success with AI, Bring Everyone On Board” by David De Cremer, a professor of management and technology at Northeastern University. Cremer argues that it’s counterproductive for leaders to avoid involving rank-and-file employees in AI projects.
Cremer writes: “If you want to avoid resistance from your employees when introducing AI, you must push them out of their comfort zone while ensuring that they understand why you’re doing so. They should know how you plan to take care of them during this transition. You’ll need to exercise patience because it will take time and effort for workers to become familiar with AI and see how it can help them in their jobs.” He provides suggestions on what organizations must do to develop employee-inclusive AI practices.
Moving beyond experimentation with AI to business transformation is tough. But it seems to be a necessity to stay competitive. Have a good weekend.
Sheryl Estradasheryl.estrada@fortune.com
Upcoming event: Join Fortune for a conversation on “Leveraging Decision Intelligence to Mitigate Risk in an Uncertain World,” on June 18, from 11 a.m. to 12 p.m. ET. This virtual discussion is part of the Emerging CFO series, presented in partnership with Workday, and offers a chance for emerging finance leaders to hear from CFOs on topics at the top of their agendas. We’ll explore the new science of decision intelligence–the combination of AI, machine learning, and advanced computing power–and discuss how it’s enabling CFOs to create forecasts, connect planning with execution, optimize spend, and manage risk amid disruption. You can find out more information and register here.
Leaderboard
Some notable moves:
Emily Reuter was promoted to CFO at Instacart (Nasdaq: CART), effective May 7. Reuter replaces Nick Giovanni, CFO since 2021, who stepped down. Giovanni will remain at the company for a transition period ending July 1. Reuter has served as VP of finance at Instacart since January. Before that, she worked in a variety of financial roles at Uber for nearly 10 years, including as its head of investor relations.
Susan Healy was named EVP and CFO at the casual footwear maker Crocs, Inc. (Nasdaq: CROX), effective June 3. Healy succeeds Anne Mehlman, who was recently appointed president of the Crocs Brand. Healy joins Crocs, Inc. from IAA, Inc., a marketplace for automotive buyers and sellers, where she served as CFO and led the company through its $7 billion merger with Ritchie Bros. Auctioneers Incorporated. Before IAA, Healy served as SVP of finance for Ulta Beauty.
Gavin Felder was named CFO at Smoothie King Franchises Inc., effective May 28. Felder replaces Thomas Kim, who left the company in September. Felder joins the company from Yum Brands, most recently serving as its chief strategy officer. During his 16 years at the company, he also worked as commercial director for KFC U.K., CFO of KFC Africa, and CFO for Yum’s Global KFC Division.
Taryn Miller was named CFO at Wolverine World Wide (NYSE:WWW), a casual footwear and apparel company. Prior to this appointment, Miller served as VP of corporate and commercial finance at Corteva Agriscience. She has also served as the CFO of global business units, enterprise FP&A, and investor relations at Kimberly-Clark Corporation.
Chris Zych was named CFO at Southern First Bancshares (Nasdaq: SFST), the holding company for Southern First Bank. Most recently, Zych served as director of corporate development and investor relations at United Community Bank. Before that, he worked as manager strategy and management reporting at First Citizens Bank.
Blake McCarthy was appointed CFO at Atlas Energy Solutions (NYSE:AESI), a proppant producer and logistics provider, effective May 13. McCarthy joins the company from NOV, Inc., where he served in various operational and financial roles. Before that, McCarthy was a principal investor with Citadel Global Equities, covering the global oil and gas industry with a specific focus on the oilfield services sector.
Brian Bolster was appointed CFO at NextEra Energy Partners, (NYSE: NEP), a subsidiary of NextEra Energy, a renewable energy company. Bolster is succeeding Kirk Crews, who has been at the company since 2016 and was promoted to the roles of EVP and chief risk officer. Bolster spent 25 years at Goldman Sachs where he was the head of natural resources of the Americas.
Big deal
Just 15% of organizations have AI policies, and 40% of organizations offer no AI training at all, according to an ISACA pulse poll of 3,270 digital trust professionals. The organization considers these gaps to be “concerning” given that 70% of respondents say staff are using AI, and 60% say employees are using generative AI.
Courtesy of ISACA
Going deeper
Here are a few Fortune weekend reads:
“Many Americans can’t afford vet care. Is a new business model to blame?” by Luisa Beltran
“Spirit Airlines CEO, still salty after its failed JetBlue merger, calls the airline industry a ‘rigged game’ and consumers ‘the long-term losers’” by Dylan Sloan
“Boeing whistleblower deaths are prompting ‘more than 10’ new witnesses to come forward, says attorney” by Shawn Tully
“Equinox is offering a $40,000 a year personalized wellness program to help you live longer. Here’s what it includes” by Beth Greenfield
Overheard
“There are those who believe artificial intelligence is here to automate the economy, displace jobs, and wreak social havoc. I understand those fears, but in the aviation industry, AI is having the exact opposite effect.”
—Brian Tossan, chief technology officer of Greater Toronto Airport Authority, writes in a new Fortune opinion piece. In baggage handling, for example, “AI-driven scheduling software is revolutionizing staff allocation,” Tossan writes.
