CFOs are eyeing AI for efficiency gains, particularly in automation, data analytics, and risk management. AI can automate over 90% of transaction processes, streamline financial closing, and improve forecasting. AI implementation costs for mid-sized companies range from $50,000 to $250,000, while enterprise solutions can exceed $1 million. These costs include data preparation, software, cloud infrastructure and maintenance. However, many CFOs are hesitant to implement AI in their finance functions due to concerns about data accuracy, security, and potential financial instability. Some CFOs are investing in AI for other departments but remain cautious about their own.
Despite the potential, AI's impact on finance is underutilised, with many CFOs in the early stages of adoption. To fully tap into AI's potential, businesses must adopt a strategic approach that prioritises long-term value. Companies should create detailed financial models, track key performance indicators, and embrace agile implementation to mitigate risks and ensure a substantial return on investment.
Manulife Investment Management has launched the Manulife Private Credit Plus strategy in Singapore, targeting private banks and wealth managers. The strategy invests in senior loans to middle-market companies and asset-based lending. The fund aims to provide income and some capital appreciation through a diversified private credit fund-of-fund approach. Manulife's parent company has committed up to $100 million to the strategy.
