There’s no escaping the discussion of generative AI and how it can help businesses get more done. But when it comes to your financials, is it a good idea? 

While efficiency is the big draw of AI, there are also potential pitfalls. Generative AI learns from the information you give it to provide insights about your business, but it’s important to be clear on how your data will be used and whether it will stay private before you implement a solution.

Concerns about data privacy

Protecting your company’s data — including employee and customer data — should be top of mind for all business owners. From regulatory fines to lawsuits to lost business, the repercussions of a data incident or breach can devastate a company.

If letting AI tools access your data has you thinking twice, you’re not the only one. A 2025 study by the Financial Education and Research Foundation showed that 78% of CFOs are concerned about cybersecurity threats. There are significant first- and third-party data privacy risks when you allow AI to ingest and process your data. 

That’s why you should be extremely cautious about using AI tools to handle any aspect of your finances. If you do want to explore AI efficiencies, take the appropriate steps to protect your business:

• Only consider solutions that were built specifically to handle sensitive data. (Not general tools like ChatGPT.) Make sure the options you choose from gate access to data based on user authorization and don’t mix your data with others’ to generate outputs.
• Ensure any tool you might use has the highest levels of data security to stay compliant with industry regulations and ensure your company’s data doesn’t end up where it shouldn’t. 
• Create strong policies to guide your employees in how they should and shouldn’t use AI. With the wide availability of tools like ChatGPT, Gemini and CoPilot, team members might decide to use them on their own and accidentally share data they shouldn’t. This could expose you to legal and regulatory action or reveal data to hackers.

Integrating with existing systems

In another recent survey of financial leaders, concerns about integration with existing systems were the leading issue. Respondents were worried about inconsistencies among systems that could lead to poor data governance.

It’s important to think about how adding a generative AI tool will affect your processes and the technologies you already have. How will you ensure everyone is using the same data across tools each day? Solutions that don’t integrate with each other well can create inefficiency and confusion — and leave you without an accurate view of all your financial data.

AI is no substitute for experienced financial leadership

AI solutions can be very helpful in some areas of your business, but when it comes to your finances, you should be very selective. It helps to have a CFO on board who’s well-versed in the technologies common in your industry and current on cybersecurity issues. The right CFO will understand the vulnerabilities of your financial data and how to best protect your company’s interests.

Generative AI also lacks the human insights that come with the years of deep, diverse experience a Fractional CFO can bring to your company — especially industry-specific expertise. What sounds like good output from an AI tool might be a no-go for someone who’s done the work in real life. When you’re looking for answers about the financial health of your company, turning to a true expert is the way to go.

Lean on a Fractional CFO to guide you

You don’t have to figure out all this technology on your own. A Fractional CFO can help you figure out which processes can be automated and when it’s safe to use AI. They can help you map out a strategic plan for your business that defines the role technology should play to help you find the most success. 

If you’re in Kansas City, one of the experienced financial leaders at Crown CFO can help you navigate the complex technology waters. Contact Kerry George at [email protected] to bring a trusted, expert Fractional CFO to your business.