October 20, 2024 • 36 mins
In today's rapidly evolving business landscape, the role of the CFO is undergoing a transformative shift. As highlighted in a recent discussion on the Digitally Curious podcast with Chris Juneau, Head of Market Strategy for SAP Concur, CFOs are increasingly turning to AI to drive strategic growth and innovation.
Many of you may already be using SAP Concur without realising it. When you book a trip, submit your expenses, or you use the brilliant traveller app Tripit, you’re using SAP Concur services.
I spoke with Chris about a couple of recent reports from SAP Concur, one which looks at how CFOs are embracing AI, and another about how to measure and maximise the returns from AI.
Key Insights from the CFO Insights Report:
- Rising Investment in AI: Despite 58% of CFOs admitting limited understanding of AI, investment in AI technologies has surged from 15% to 51% since 2023. This reflects a growing recognition of AI's potential to revolutionise financial processes.
- AI Applications in Finance: CFOs are leveraging AI for various applications, including journaling and bookkeeping (65%), financial planning (59%), and risk scenario planning (53%). These technologies are not only enhancing efficiency but also enabling more strategic decision-making.
- Bridging the Knowledge Gap: Education is key. SAP Concur is committed to educating financial leaders on AI applications, helping them ask the right questions and implement AI responsibly within their organisations.
AI adoption is not just about cost reduction; it's about unlocking productivity gains and fostering innovation. By automating mundane tasks, CFOs can focus on strategic initiatives that drive business growth.
So what can you do next?
Educate and Empower: Continuously educate your teams on AI's potential and collaborate with technology partners to harness its full capabilities.
Collaborate Across Functions: Partner with HR and IT leaders to ensure a holistic approach to digital transformation.
Challenge the Status Quo: Always seek better ways to optimise business processes and drive strategic outcomes – start exploring your existing platforms and see if they can be enhanced by AI.
Join us in exploring how AI is reshaping the role of the CFO and driving businesses towards a more innovative future.
Resources Mentioned
CFO Insights report: Repositioning for Growth
CFO Insights report: How to Measure and Maximise AI Returns
Concur Expense
Chris Juneau on LinkedIn
This is a paid partnership with SAP Concur.
Thanks for listening to Digitally Curious. You can buy the book that showcases these episodes at curious.click/order
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Welcome to Digitally Curious, brought to you by SAP
Concur, a podcast to help younavigate the future of AI and
all things tech.
Your host is world-renownedfuturist and author of Digitally
Curious, Andrew Grill.
Every episode is filled withactionable advice about
(00:21):
technology that will helpenhance you and your business.
Speaker 2 (00:26):
Welcome to the Digitally Curious podcast.
Today on the show we have ChrisChenault, head of Market
Strategy for SAP Concur.
Welcome.
Speaker 3 (00:32):
Chris.
Thank you, andrew, great to behere.
Speaker 2 (00:36):
Now we're here to talk about a couple of really
interesting reports SAP Concurhas recently published around
CFOs and AI and also measuringand maximizing the impact of AI.
So for those not familiar withSAP Concur, could you give us a
brief overview of the companyand how it helps organizations
today?
Speaker 3 (00:53):
SAP Concur is the leader in travel booking,
expense claim processing andinvoice management solutions for
businesses of all sizes.
At the core of our foundationis our passion is there has to
be a better way.
These processes that we'veautomated for organizations are
tedious, typically manual andultimately distract their
(01:13):
employees from what's core totheir individual business.
So that's our passion thatfuels us.
Speaker 2 (01:18):
I actually came across your organization when I
was at IBM.
We were using your system.
But, more importantly, I'vebeen using TripIt for years and
I'm a TripIt Pro subscriber, sothank you for having that tool.
It makes traveling so mucheasier and probably people don't
know that TripIt is actuallypart of SAP Concur.
Speaker 3 (01:35):
Most people don't recognize that, but long before
we acquired TripIt, it hasalways been my favorite go-to
travel application, so thank youfor that five-star rating.
Speaker 2 (01:45):
Well, I'd give you a six-star if I could, and I tell
my friends to use it.
The travel a lot because ittells you what's happening well
before the airline tells you,but that's a whole other podcast
.
What we're going to talk abouttoday is really focused on the
CFO and AI.
Of course, ai is the flavor ofthe month, the year, the decade,
and I've been poring over thesetwo reports I mentioned.
They're actually crammed withamazing insights.
(02:05):
Now, the CFO Insights Report issomething you've published
before.
Maybe you could give us an ideaof who you surveyed and some of
the top level findings.
Speaker 3 (02:14):
So we surveyed over 300 CFOs and senior financial
professionals for our latestreport and here's some of the
key findings First, 63% areinvesting in cutting-edge
technology to enhance theirability to react to the changing
business circumstances.
Second, 58% of those seniorfinancial leaders still
(02:35):
understand very little about AI,which is fascinating when you
combine it with investment in AIsince 2023 has grown 15% to 51%
.
So it's clearly they may lackunderstanding, but there's an
awareness.
I call it FOMO fear of missingout, because they see the
potential from their peers andso forth, and that's what's
(02:56):
driving the investment.
Even though that they say, 58%may still not quite understand
how AI should be applied withina financial process.
Speaker 2 (03:04):
Now we'll get into that, because I think across the
board, it's not just CFOs, it'sthe whole C-suite, it's senior
management.
Everyone is talking about AI.
I regularly speak at events.
I did one on Wednesday night,asked for a show of hands who's
used ChatGPT?
Almost every hand went up.
I then said keep your hand upif you use it every day.
Most hands went down.
(03:26):
So to your point, we know thatit exists, we know, we've played
with it, we've written a poemwith it, but when it comes to
our day-to-day workflow it'ssomething that's still a bit
foreign to us, and I've got tosay that one of the really
interesting things that jumpedout of the report it was
repeated several times was and Iuse this word deliberately a
real urgency from CFOs.
They're saying we need training.
We need training to understandthe technology.
So maybe you can talk aboutwhat the report highlighted.
(03:47):
Where are the gaps?
But the question I wanted toask the report I was almost
yelling at it and that's why Iwant to ask you is who's going
to do that training?
Who's responsible?
Speaker 3 (03:56):
for that?
Oh, great question.
So I think it's just aboutoverall education, and we take
that responsibility within SAPand SAP Concur very seriously,
because we're clearly laying outhow AI is being applied within
our solutions, educating CFOs onthe controls that we have as we
apply AI within our solutionsand giving them the knowledge
(04:17):
and the comfort to be able toask the right questions at the
right time with regard to howwe're using it.
And then, third, is we have anopportunity also to remind these
financial professionals how AIis already infused in the
services they already employfrom Concur and that probably
many of the services that theyuse within their personal life
just may not recognize it.
(04:38):
So it's about education,education, education.
Speaker 2 (04:42):
So in one way you can say back to the CFOs you're
already using AI without reallyknowing it, not only in your
personal life.
The example I give if youunlock your phone, you're using
AI.
If you choose a Netflix movie,you're using AI.
So what you're really saying isthat you've got a relationship,
an existing relationship.
You've been using SAP Concurfor years.
Really, they can rely on you tokeep upgrading and making sure
(05:02):
that the latest and greatest AIis baked into the services they
use every day.
Speaker 3 (05:07):
Absolutely.
That is ultimately the promiseof the cloud, isn't it?
To ride the latest cutting edgetechnology in a useful way that
has an immediate impact both onthe end user experience as well
as the business outcomes.
Speaker 2 (05:18):
So one stat that I found interesting was that 58%
of CFOs understand very littleabout AI and finance, yet AI
adoption is increasing, as yousaid.
So what can you do to helpbridge this knowledge gap, and
how does this impact their AIimplementation strategies?
Speaker 3 (05:33):
First, it's like where we see today that
financial professionals areusing AI, and we see it in these
three areas that 65% are usingit with regarding journaling and
bookkeeping, 59% are actuallyusing it in their financial
planning and 53% in their riskscenario planning.
And then another area ofsignificant use of AI is
(05:55):
monitoring for fraud, and we seeabout 50%.
What all of this means is justvast amounts of data is being
put to use, leveraging AI onbehalf of financial organization
in these processes.
Speaker 2 (06:07):
Now, a lot of this is baked in because of the work
that you're doing, but whatspecific challenges do CFOs face
when integrating this AI intotheir existing financial systems
, and how can this be mitigated?
Speaker 3 (06:18):
It's vast amounts of data, it's integrating across
disparate systems, which cloudservice companies such as Concur
does, and many times thatecosystem may be uneven, might
not be the latest technology,not having access to critical
data that's required to powerthe AI.
So that's where we'll talkabout a little bit later in the
(06:40):
discussion of how therelationships and the
partnerships between the CFO,the CIO and HR come to bear.
Speaker 2 (06:48):
So many CFOs in your report cited inaccurate
forecasting and the difficultyof integrating cost control
software with other systems.
So how does SAP Concur'sexpense management solution
address these integration andforecasting issues?
Speaker 3 (06:59):
Out of the box.
We have seamless integration,of course, with the SAP
ecosystem of solutions, but wealso with multiple third-party
solutions, erps, other financialsystems and HR systems.
So, first and foremost, it'sall about the seamless
integration, requiring a littlemaintenance and upkeep by the IT
group.
Second, it then becomes thecleansing of all that rich
(07:22):
information, all that data andthat's the hard work that we're
also doing on behalf of ourcustomers, ensuring not only
access to the right data but, asin the data, in a format that
we can ultimately take advantageof and consume to deliver the
insights that CFOs and theiremployees require.
Speaker 2 (07:37):
I'm so glad you talked about data because well
before, AI was a thing thatpeople were talking about all
the time.
I've been talking for yearsabout the need for good quality
data, and it becomes even moreimportant now that we're looking
at AI systems.
And to train these AI systemsyou have to have data that's in
the right format.
So how does SAP Concur helpactually make sure that data is
in the right format to processit properly using AI?
Speaker 3 (07:59):
That's where the cooperation across the CFO, the
CIO and the CHRO comes together.
It's that collaboration andthat conversation begins.
Andrew, you might say how doesexpense reporting have to do
with HR?
How does expense reporting haveto do with the CIO?
Well, first, this is a solutionthat, to an end user like you
(08:20):
or I, it's a seamless process.
I book my travel, I take mytrip, I complete my expense
report.
To us it's a seamless process,but to those three groups, cfo
is a financial process.
The HR may view it as I need toworry about duty of care and
risk, and the CIO just says, oh,it's another IT process.
So all of these have to cometogether to identify where that
(08:42):
rich information sits.
Let us allow SAP Concur tointegrate with it, and it's that
collaboration that also sets upthe project for future success
with regard to, ultimately, whatis ultimately the success
criteria across all of thosethree groups.
Speaker 2 (08:56):
Now those three groups and those three roles on
the C-suite are now having totalk about AI.
I'm wondering if we were to bea fly on the wall in a board
meeting or an executive meeting,what do you think the AI topics
are being discussed at thatC-suite?
Obviously, the CFO is usingyour software, but does the
executive team really understandthat their level of AI maturity
(09:16):
themselves and this is where Igo into talking about digital
curiosity their own personalunderstanding, their own use of
these tools?
How important is it for theentire C-suite to really be AI
literate?
Speaker 3 (09:28):
I think it's very important.
It gets back to the early partof our conversation about
education.
I think that education is notonly for the CFO, but across the
C-suite.
And then, second, therelationship between the CFO and
the HRO is ultimately changing.
The CHRO function has becomemore of a strategic function
within organizations.
They're having to try to helpand maintain, attract and retain
(09:52):
talent.
So now the CFO and the CHRO cancome together and if you can
provide through AI, simplifyingprocesses, getting rid of the
mundane tasks which manyemployees may have to engage
with and now you're not only asthe things we talked about
earlier financial forecasting,reporting, potential fraud
(10:13):
identification and control allare great benefits, but then can
you also, at the same time,deliver a great experience for
the end user, which then helps,in turn, retain that talent that
you fought so hard to attract.
So we believe that, first, it'san opportunity to bring those
three functions together and,second, for the benefit of every
employee within theorganization.
Speaker 2 (10:34):
So you've been doing this survey for a while, so
you've seen the changes happen.
Where has the shift been fromthe CFO in terms of the biggest
impact that they think AI willhave on their function, from
where it was to where it is now,and do you think they're less?
Speaker 3 (10:47):
afraid of AI.
With regard to the CFO, it wasfirst.
It was about efficiencies.
Second, many employees withinfinancial accounting
organization you said ityourself it's like is this going
to take my job?
And I think all of the whenthat sort of washed over, it
became clear that it's not onlyefficiency, it's greater
accuracy.
Then it's also allowing myemployees to focus on things
(11:08):
which are more important to theorganization, more strategic to
the organization, and it movesfrom cost avoidance to cost
containment to more.
I'm going to focus on more thestrategic level within the org.
Speaker 2 (11:19):
Now you talked about the need for collaboration
between the IT and HR functions.
So CFO comes along.
He or she says we need theseextra functionality.
How does your solution reallymake the IT department's job
really easy, Because there's notmuch for them way, in
accordance with applicable lawsof where the organization
(11:46):
operates.
Speaker 3 (11:46):
So here's where the opportunity for the CFO and the
CIO to work more closelytogether.
Am I using this in aresponsible way that generates
reliable information back andcertainly, third, safeguards my
data and so that I know it's notused or exposed out to the
internet to train these largelanguage models?
So that's where the two cometogether, but then where,
(12:09):
ultimately, in doing thosethings, I also come together in
terms of the end user.
Can they deliver a betterexperience by infusing these
processes with AI?
And we would say, of course,the answer is yes, as
organizations and you've talkedto many, andrew talk about
digital transformation.
What they're really saying islike I've got so much data, how
(12:30):
do I leverage that information,but for the benefit of everyone,
including the end user?
Speaker 2 (12:35):
So, just before we leave, talking about that
tripart relationship between HRand IT and the CFO, what five
things should CFOs know aboutwhen working with HR and IT for
success?
Speaker 3 (12:47):
Certainly, hr is focused on retaining attracting
and retaining the top talent, sothat's where the CFO also cares
deeply about an opportunity topartner there.
Second, we've seen in our datathat the survey showed that 64%
of CFOs believe that the HRfunction helps retain in those
high performers by 56%.
(13:07):
And third, we work in a hybridworld.
Still, for the most part, mostorganizations work in a hybrid
world, so CFOs see thatinvestment in terms of
collaboration along with HR asdriving productivity among the
employees while also drivingtowards your business goals, and
then that ultimately leads intoCFOs and the CIO.
(13:31):
Typically, when organizationsemploy our solutions, it's
driving greater efficiency,visibility in terms of spend and
so forth, but now AI cansupercharge those efficiencies
as well, and so minimizingbusiness costs, overruns and so
forth, and previously we talkedabout help with financial
planning and forecasting and soforth.
So CFOs have the opportunity tosolve a range of problems, from
(13:55):
end user experience that the HRleader cares about to driving
greater efficiencies acrosstheir financial processes and
support in cooperation with theCIO.
Speaker 2 (14:06):
So we've realized that we want to actually invest
in AI.
The problem I think many peopleare feeding back to me is how
do we measure success, how do wemeasure the return on
investment, and the secondreport that I alluded to focuses
on that.
So what do you think the maindrivers are behind the increased
investment in AI?
Speaker 3 (14:22):
I believe it's twofold.
First is the greater efficiency, as we spearheaded.
Second, it was the opportunityto take these mundane processes
which financial departments andemployees on a day-to-day basis
are dealing with, and do thatheavy lifting on behalf of those
employees, on behalf of thoseemployees.
And then, third, by doing allthose things together, the now
(14:44):
CFO has in some wayssupercharged their organization
with regard to their financialreporting, their processes,
identifying mixed risk, butultimately measuring that ROI
starts with what are their goalsat the end of the day?
It's the classic you knowwhat's my hard cost savings
versus my soft cost savings?
Because AI has many soft costsavings, because AI has many
(15:04):
soft cost savings, but also it'sthe hard cost.
So I think, defining upfront,ultimately, what are the
objectives, both the more hardcost savings meaning real either
risk management, betterfinancial reporting, closing the
books faster to the softsavings of the greater
efficiency that employeesachieve across the board, that's
ultimately what needs to bedefined upfront by the CFO.
Speaker 2 (15:25):
So I'm a futurist.
I always look at what's comingnext.
So maybe you could talk a bitabout the potential future
applications of AI in financeand how can CFOs ensure that
they're adopting AI responsibly?
Speaker 3 (15:37):
Oh, great question, because that's always one that
comes up, especially around theperceived risk within AI.
So, first, in terms of what thefuture holds, sap has
introduced Juul, which is adigital assistant that'll work
across all the SAP ecosystem,across the data.
Second, cfos should expect thatgenerative AI is going to
(15:58):
continue to be infused acrosstheir financial processes, but
it's also the CFO'sresponsibility to ensure that
it's done in an ethical and acompliant manner.
And again, that's where youwork closely with your
technology providers such as SAPand SAP Concur.
Third organizations need tohave their own clear guidelines
to both their employees as wellas their suppliers, in terms of
(16:20):
how their data and AI is goingto be used responsibly and
ethically, because, at the endof the day, all of us must
protect our customers' dataBecause, at the end of the day,
it is our customers' data.
So, with clear guidelines,clearly established by our
customers as well as ourselvesworking knowing that AI will
(16:40):
continue to be infused.
And then, third, doing it in anefficient and ethical manner is
key to both parties.
Speaker 2 (16:48):
The other report looks at measuring and
maximizing AI returns.
Speaker 3 (16:51):
Maybe you could give us some key takeaways from that
and what that means for CFOsgoing forward Well it gets back
to our earlier part of ourconversation that measuring ROI
can be difficult because of thesoft cost and hard cost savings.
That said, using best practiceswith regard to data management,
tracking results and ensuringsecurity and privacy, all come
(17:12):
together to deliver that ROI.
And the key is it's clearlyupfront deciding what is most
important to this organizationUltimately, what are their
objectives they're trying toreceive, what is most important
to this organization Ultimately,what are their objectives
they're trying to receive?
And then, third, can you put inmeasurements in place to
calculate that ultimately, todeliver the ROI measurement your
organization requires?
Speaker 2 (17:32):
Now, everyone wants to see some quick wins from AI,
but you and I know that there'sno quick win in any business.
So how do they balance the needfor these quick wins with the
pursuit of long-term strategicbenefits from?
Speaker 3 (17:42):
AI.
I think two things.
First, many AI projects arestill in the implementation
phase, but I think there's anopportunity, such as with
AI-infused services.
Concur provides across financethat there's low-hanging fruit
which organizations takeadvantage of.
Look at the expense reportingprocess.
People would say, okay, so it'sa process that may or may not
(18:04):
be Michigan critical to mybusiness, but it's one that
occupies my employees' time.
So how can I enable myemployees to do their jobs
faster, complete their expensereporting or travel booking
faster, while also being incompliance with my
organization's policiesregarding spending?
It's finding thoseopportunities to have the
greatest impact with the lowestrisk, and I would say expense
(18:25):
reporting, travel booking aretwo areas which represent an
opportunity of low-hanging fruit.
Speaker 2 (18:31):
What role do partnerships with experienced
providers such as SAP Concurplay in maximizing this ROI?
Speaker 3 (18:37):
First, helping identify the quick wins.
Second, also partnering withthese organizations to really
define what is important to themfrom an ROI perspective, what
are the benefits they're trulyseeking, and then how do you
measure those benefits?
And then, third, it's anopportunity where we touch
almost every employee in theorganization, just like email or
(18:58):
other collaboration tool.
So with T&E, you can not onlydrive greater efficiencies, but
every employee can see thebenefits from using this
AI-infused services, thereforebuilding momentum for future AI
projects.
Speaker 2 (19:11):
Yeah, I suppose a lot of people are using AI in their
own private life and whencompanies like Apple we saw
recently Apple launching theApple Intelligence, I've been
playing with it.
It's slowly becoming more andmore useful.
It's not there yet and it's notgoing to replace an assistant
per se, but I suppose whatpeople and I'm wondering whether
the survey bore this out thatpeople are saying well, I'm
using AI in my private life andat home to do tasks.
(19:34):
I would expect that all thethings I have to do as part of
my role, as you say expensereporting, travel booking I
would assume that that's goingto be AI infused.
I suppose the real challenge ishow do we not actually make it
harder but make it easier?
I mean, ai is supposed to makeour life easier, so is that the
goal?
That the employees don'tactually know this is AI infused
(19:54):
?
They kind of expect that it'sthere and making their life and
their job easier.
Speaker 3 (19:58):
I think employees probably do not recognize what
AI is powering what services,whether they use it in their
personal or private life.
But at the same time, we'veseen for years and we've called
it, as well as others in theindustry.
We've called it thecommercialization of the
enterprise.
Employees do expect a level ofpersonalization and seamless and
easy experience from theircorporate applications their
(20:20):
company provides as the same asthe applications they use in
their personal life, whether itbe banking or other
collaboration tools.
So that expectation has beenset for many years.
What AI is doing is nowdelivering on those expectations
creating a personalizedexperience, freeing up employees
from tedious tasks and alsoanticipating what that employee
(20:41):
might want to do with regard tothe next steps in their business
process that you're dealingwith.
Speaker 2 (20:48):
I'm sure if we came back in a year's time, we would
see even more advancement,because not only is the genitive
AI systems, they're going toget smarter and smarter but I
think you're going to see howthe employees use your services
and that's going to really helpinnovation.
So are you using the feedbackfrom your users around the world
?
You have so many customersusing it.
How is that being infused backinto product development to make
(21:09):
the service even smarter andmore cost effective?
Speaker 3 (21:12):
into product development to make the service
even smarter and more costeffective?
Great question.
Well, we're constantlymeasuring how employees are
engaging with our technology,from beginning to end, so
understanding exactly whatthey're doing within our service
, but also asking for continuousfeedback in terms of the
experience that they've received.
So we're taking all thisinformation and, in addition, we
(21:33):
see even our own customers areleveraging our APIs and applying
their own AI within theirsystems to extend what we do
even further by leveraging theirrich information to apply in
unique and different ways.
So we're observing how ourcustomers are taking it and
taking it even forward andsaying, hey, should we take that
(21:53):
and consider that in ourprocess, or is that more of the
purview of the customer tocontinue innovating on?
Speaker 2 (22:12):
we're not always going to want to use the tool
exactly the way you've built it,so I think you're right.
If you can provide an API, youmay find that clients are
actually using the data in adifferent way.
That could actually make sensefor more customers.
So talk to me about howimportant it is to have an open
system and APIs to allow peopleto do what I call crazy things
that actually become productenhancements.
Speaker 3 (22:29):
I think the fundamental premise of cloud
services is truly an openecosystem, providing the APIs
for organizations to leveragethe data on their behalf,
because ultimately it is theirdata and or we don't understand
(22:51):
how to solve those problems butour customers do.
It's their data Expose thatinformation in a secure manner
and let them ultimately takeadvantage of it.
And that's also, I believe,still one of the fundamental
promises of cloud computing.
Is that providing thatecosystem and that open
ecosystem to take advantage anduse that information in ways
(23:12):
that we, as technology providers, haven't even thought about.
Speaker 2 (23:16):
Now your services touch the bare metal of the
organization expense management,booking, travel.
They're things that make theworld go round.
I'm wondering if you've had aclient come to you to say if
only I could do that.
Have you had some reallyinteresting ways that you
thought we hadn't thought aboutthat?
But you've got so many peopledoing all these things.
Travel is not frictionless.
(23:36):
There's always something goingon and with my experience with
TripIt, it allows me to know ifI have to change things.
But talk to me about howclients are really pushing you
to do your best.
Speaker 3 (23:47):
I can point to some solutions such as Concur Verify,
which is our sort of auditingsolution, but it's actually
doing the audit while the enduser is traveling.
So we provide all this richinformation.
We have now a partnership withMasterCard that now brings in
what we call real-timeauthorization data, which you've
experienced in your personallife.
(24:08):
When someone taps and goes, youknow you get the little alert
saying hey, you know, andrew,you know you hopped the tube or
bought something at Boots and soforth.
So now, with all this richinformation coming in, we have
the opportunity to takeadvantage of it.
Taps, validate that that's acompliant transaction, instead
(24:32):
of after they tap he's done withtheir trip, and so forth at the
back end.
Why can't you just move allthose processes up to the front
end?
You know meeting the user wherethey are when they're working.
So our Concur Verify is one ofthe solutions where our
customers say can we do itearlier in the process to
deliver a better experience forthe user?
But even while they'retraveling they know whether
(24:53):
they're in compliance or not,versus waiting where the money's
been spent, the trip is overand they're just simply trying
to reconcile their expensereport.
Speaker 2 (25:00):
And that's down to that user expectation.
So in my personal life, when Ibuy something on my Monzo card
or my HSBC card, I get themessage back.
If it then transfers over intoyour business life, they're
probably more likely to becompliant because you've now got
the information.
Oh, I didn't know that I wasn'tallowed to buy that or I'll do
that again.
So are you seeing that it'sactually changing end user
(25:22):
behavior by giving more realtime, more accurate information
to the end user at the point ofpurchase?
Speaker 3 (25:29):
purchase.
We believe it's early days, butwe have some data that shows.
Look on average, if I recallproperly, expense reports are
returned about 14, 14.5% of thetime to the employee for some
reason, typically data error,incorrect expense type and so
forth.
With ExpenseIt another one ofour AI power solutions, which we
(25:51):
had over 10 years it's actuallybuilding.
Once you take the photo of thatreceipt and so forth, it
actually creates that expensetransaction by extracting the
relevant information, which saysyou know, we always say that
humans introduce error throughkeystrokes and so forth.
So the return rate goes 14% toliterally over 1%.
So imagine the benefit to anend user to say, hold on a
(26:15):
second, I'm not getting thesereturned to me anymore because
also it's doing it on my behalf.
So that drives compliantbehavior.
It creates sort of a virtuouscycle and that's just one of the
examples that end usersdirectly benefit, but the
organization benefits becausethey have cleaner data.
I have happy users, lessreports being returned and so
forth.
So everybody wins.
Speaker 2 (26:34):
And it may not be something that's really obvious,
but if you join a largeorganization I was at IBM and we
were using your system as wellIf you know that from day one,
you're going to have lessfriction in doing expense
management and claiming expenses, it's going to make your life a
lot easier and you can focus ondoing what you've been employed
to do, which is probably beingin front of customers traveling
around the world, doing whatyou've been employed to do,
which is probably being in frontof customers traveling around
the world, being jet lagged, nothaving to worry about all the
(26:55):
expense management stuff.
So almost like as you arerecruiting oh, by the way, we
have SAP Concur with all the AIbuilt in, so you're going to
have a great experience byworking with us.
That could actually be back toHR a plus to say if you come and
join us, we're going to makeyour life a little bit easier.
Speaker 3 (27:11):
Absolutely, and we've seen where we've talked to some
of our customers, where theiremployees will ask what to use
if you're hiring for a marketingperson, what's your marketing
automation system that you'reusing?
But we've had also employees orpotential future employees ask
what are you doing from anexpense reporting standpoint,
especially as I have the goodfortune to travel around the
(27:31):
country and people recognize mylogo on my luggage tag as being
with SAP Concur.
They immediately say I loveConcur, or I used to love Concur
, but I'm now working for acompany that doesn't have Concur
.
I'm bugging them to get Concurbecause it saves me time.
Speaker 2 (27:47):
There's growing concern around the ethical and
security risks of AI, and I haveto talk about this with clients
all the time.
Ethical and security risks ofAI, and I have to talk about
this with clients all the time.
How do you address the risks inAI-powered travel and expense
management tools to ensure thatthere's responsible?
Speaker 3 (28:00):
AI deployment.
First, with SAP and SAP'sapproach to business AI, it is
our responsibility to protectthat data and to utilize our
technology in a way that'sreliable and responsible.
First and foremost, we willnever expose a customer's
company data to a large languagemodel.
Ultimately, at the end of theday, it is our customer's data
(28:22):
and should always be protectedand private.
We will never make it publicavailable.
Second, we're adhering to thehighest standards of
cybersecurity and also GDPR.
Third, we also care about thepotential negative impacts that
AI could bring with regard toethics and so forth, and so at
the center of everything thatSAP does with regard to AI and
(28:45):
SAP Concur is that it'shuman-centered AI development,
so, in doing so, striving toeliminate any bias or
discrimination that could comethrough these AI mobs.
Speaker 2 (28:55):
The whole bias thing is so important, and one thing I
advise clients to do is thinkabout diversity when you're
training these models, becausethese models are trained by
humans.
We introduce a bias in there.
So by ensuring at that timewhen you're training systems and
setting them to work, by havinga very diverse workforce
working across, that it reallyensures that you're removing
those potential bias issues.
Great point, great point Andrew.
(29:17):
So the report notes thatorganizations should also
consider long-term investmentsin data management and talent.
So how does SAP concur?
Support companies in buildingthe foundational data and AI
skills necessary for thissustained success?
Speaker 3 (29:30):
We try to do the heavy lifting on behalf of our
customers.
So it gets back to theintegration with disparate
third-party systems that couldbe across the customers back end
and so forth.
Second, it's also continuing toeducate our customers in terms
of how we're utilizing that AIinformation.
And then third, ai for us isnot a standalone SKU.
(29:53):
It's just ultimately part ofthe service in terms of making
it more efficient, moreeffective from a financial
reporting perspective and alsojust delivering a better
experience for all usersinvolved.
Speaker 2 (30:06):
So, while many companies focus AI on cost
reduction, some are targetinggrowth and innovation.
Final question before we go tothe quickfire round how has SAP
concurred helping businesses gobeyond tactical improvements to
leverage AI for strategicadvances like innovation?
Speaker 3 (30:22):
I would say, andrew, it's not only just about cost
reduction but most importantly,it's about productivity gains as
one of the main drivers forchange.
Even before the AI wave,everyone was talking about
digital transformation, but whatthey were really trying to say
was I'm looking for productivitygains and insights with helping
move my business forward.
Second, to your questionearlier we listen to our
(30:42):
customers in terms of whatthey're facing now, but as they
look around the corner, what dothey see in the future?
And we're looking to continueto take that information, that
feedback, and ultimately help itshape our roadmap for our
future solutions.
And then, third, as an example,we continue to build upon our
existing services.
Concur, travel Everyone knows intheir personal life and
(31:04):
professional life.
They know how to book a trip,but how can they do it in a more
efficient way that ensurescompliance?
So we've now integrated ourrequest tool so someone can.
Where many organizations havepre-travel authorization, they
can now using AI.
It's like I'm traveling tovisit with Andrew in London from
Phoenix Arizona.
(31:24):
What should my air and hotelcost me so I could plan for that
and my manager ultimatelyapprove?
In addition, you know Imentioned the MasterCard
partnership, bringing that richinformation at the time of tap
or the time of swipe, to informusers to what's compliant and
not, but also to help themalready begin to build their
expense report so they don'thave to do it on the backend.
And third, looking forward tohaving Juul Digital Assistant,
(31:48):
which will traverse all the SAPecosystem, leveraging the rich
information and all these SAPapplications and so forth, and
it goes on and on.
But at the end of the day,everything I've just talked
about it's data, data, data.
We're only going to be as goodas the data that we have access
to, the data that we canaggregate, the data that we can
cleanse, and that requirescomplete cooperation again, cfo,
(32:10):
chro and the CIO.
Speaker 2 (32:15):
Now you're surveying the CFO for the insights report.
You're doing it relativelyregularly.
When's the next time we'regoing to see more insights
coming out?
And if you had a crystal ball,if you're a futurist, where do
you think the needle will movein the next phase of the report
that comes back and the insights?
Speaker 3 (32:29):
Well, we do the CFO report typically on an annual
basis, and then we'll sprinklein if there's specific
information we're desiring,based on what's going on in the
marketplace, we'll do that.
In between, I believe that AIadoption will continue to
accelerate and that it'll becomeeven more important than the
(32:51):
data says today.
With regard to that, second, Ithink that we'll also come back
that continued concern over dataprivacy and security will
remain high, because we heartoday, andrew, how the models
are running out of data and nowthey're creating synthetic data.
What implications does it have?
So, as these models are onlypowered by data, and how shifts
(33:15):
in terms of training them, Ithink, will raise new challenges
, but also opportunities thattechnology providers such as SAP
have to address, but also thoseCFOs have to address.
Speaker 2 (33:25):
So we're almost out of time, but we're up to my
favorite part of the show, thequickfire round, where we learn
more about our guests.
I'm going to fire somequestions at you, iphone or
Android.
Speaker 3 (33:33):
Oh iPhone Window, or aisle, oh window, every time.
Speaker 2 (33:37):
I wish that AI could do all of my.
Speaker 3 (33:38):
My wife's to-do list.
Speaker 2 (33:40):
The app you use most on your phone TripIt.
What's the?
Speaker 3 (33:42):
best piece of advice you've ever received Decide what
experience you want to haveversus what your next job
opportunity is.
What are you reading at themoment?
Oh, I'm reading SalmanRushdie's book called Knifed.
I have it right here at my feet.
How do you stay digitallycurious?
I try to consume as muchinformation from a variety of
sources, always being consciousnot to be in an echo chamber
(34:05):
where we're just beingreinforced by the ideas that we
currently have, so I'm a digitalnomad with regard to the
information sources I'vesubscribed to.
Speaker 2 (34:14):
Who should I invite next?
Speaker 3 (34:15):
onto the podcast.
I would invite a frequenttraveler from one of our large
organizations to understand whattheir experiences are and what
the experiences they desire inthe future.
Speaker 2 (34:28):
That's a great idea.
I love that Final quickfirequestion how do you want to be
remembered?
Someone who is kind?
So, as I'm the actionablefuturist, what three actionable
things should our audience dotoday to prepare for the
opportunities from AI?
Speaker 3 (34:41):
I think, first and foremost, continue to educate
themselves with regard to theopportunity that AI represents
and how they can apply it withtheir own organization.
Second is it's stepping acrossthat aisle, partnering closely
with their CHRO and their CRIOas they continue their digital
transformation.
And then, third, just as wehave, is like always asking that
(35:05):
it has to be a better way, andchallenging everyone in the
organization and every vendor,whether it be technology or
otherwise they work with, interms of how do I make my
business run better and is therea better way?
Speaker 2 (35:18):
Chris, this has been a fascinating discussion.
How can we find out more aboutyou and your work?
Speaker 3 (35:22):
Well, certainly through Concurcom and so forth,
and feel free to follow me onLinkedIn to learn more about
what we're doing and what ourcustomers are doing.
Speaker 2 (35:32):
Chris, it's been a great discussion and no pun
intended, but travel safely.
Speaker 3 (35:36):
Thank you so much, andrew, you as well.
Speaker 1 (35:39):
Thank you for listening to Digitally Curious,
brought to you by SAP Concur.
You can find all of ourprevious shows at
digitallycuriousai.
Andrew's new book, digitallyCurious, is available now at
curiousclick forward.
Slash order Until next time.
We invite you to stay digitallycurious.
Welcome to Digitally Curious, brought to you by SAP
Concur, a podcast to help younavigate the future of AI and
all things tech.
Your host is world-renownedfuturist and author of Digitally
Curious, Andrew Grill.
Every episode is filled withactionable advice about
(00:21):
technology that will helpenhance you and your business.
Speaker 2 (00:26):
Welcome to the Digitally Curious podcast.
Today on the show we have ChrisChenault, head of Market
Strategy for SAP Concur.
Welcome.
Speaker 3 (00:32):
Chris.
Thank you, andrew, great to behere.
Speaker 2 (00:36):
Now we're here to talk about a couple of really
interesting reports SAP Concurhas recently published around
CFOs and AI and also measuringand maximizing the impact of AI.
So for those not familiar withSAP Concur, could you give us a
brief overview of the companyand how it helps organizations
today?
Speaker 3 (00:53):
SAP Concur is the leader in travel booking,
expense claim processing andinvoice management solutions for
businesses of all sizes.
At the core of our foundationis our passion is there has to
be a better way.
These processes that we'veautomated for organizations are
tedious, typically manual andultimately distract their
(01:13):
employees from what's core totheir individual business.
So that's our passion thatfuels us.
Speaker 2 (01:18):
I actually came across your organization when I
was at IBM.
We were using your system.
But, more importantly, I'vebeen using TripIt for years and
I'm a TripIt Pro subscriber, sothank you for having that tool.
It makes traveling so mucheasier and probably people don't
know that TripIt is actuallypart of SAP Concur.
Speaker 3 (01:35):
Most people don't recognize that, but long before
we acquired TripIt, it hasalways been my favorite go-to
travel application, so thank youfor that five-star rating.
Speaker 2 (01:45):
Well, I'd give you a six-star if I could, and I tell
my friends to use it.
The travel a lot because ittells you what's happening well
before the airline tells you,but that's a whole other podcast
.
What we're going to talk abouttoday is really focused on the
CFO and AI.
Of course, ai is the flavor ofthe month, the year, the decade,
and I've been poring over thesetwo reports I mentioned.
They're actually crammed withamazing insights.
(02:05):
Now, the CFO Insights Report issomething you've published
before.
Maybe you could give us an ideaof who you surveyed and some of
the top level findings.
Speaker 3 (02:14):
So we surveyed over 300 CFOs and senior financial
professionals for our latestreport and here's some of the
key findings First, 63% areinvesting in cutting-edge
technology to enhance theirability to react to the changing
business circumstances.
Second, 58% of those seniorfinancial leaders still
(02:35):
understand very little about AI,which is fascinating when you
combine it with investment in AIsince 2023 has grown 15% to 51%
.
So it's clearly they may lackunderstanding, but there's an
awareness.
I call it FOMO fear of missingout, because they see the
potential from their peers andso forth, and that's what's
(02:56):
driving the investment.
Even though that they say, 58%may still not quite understand
how AI should be applied withina financial process.
Speaker 2 (03:04):
Now we'll get into that, because I think across the
board, it's not just CFOs, it'sthe whole C-suite, it's senior
management.
Everyone is talking about AI.
I regularly speak at events.
I did one on Wednesday night,asked for a show of hands who's
used ChatGPT?
Almost every hand went up.
I then said keep your hand upif you use it every day.
Most hands went down.
(03:26):
So to your point, we know thatit exists, we know, we've played
with it, we've written a poemwith it, but when it comes to
our day-to-day workflow it'ssomething that's still a bit
foreign to us, and I've got tosay that one of the really
interesting things that jumpedout of the report it was
repeated several times was and Iuse this word deliberately a
real urgency from CFOs.
They're saying we need training.
We need training to understandthe technology.
So maybe you can talk aboutwhat the report highlighted.
(03:47):
Where are the gaps?
But the question I wanted toask the report I was almost
yelling at it and that's why Iwant to ask you is who's going
to do that training?
Who's responsible?
Speaker 3 (03:56):
for that?
Oh, great question.
So I think it's just aboutoverall education, and we take
that responsibility within SAPand SAP Concur very seriously,
because we're clearly laying outhow AI is being applied within
our solutions, educating CFOs onthe controls that we have as we
apply AI within our solutionsand giving them the knowledge
(04:17):
and the comfort to be able toask the right questions at the
right time with regard to howwe're using it.
And then, third, is we have anopportunity also to remind these
financial professionals how AIis already infused in the
services they already employfrom Concur and that probably
many of the services that theyuse within their personal life
just may not recognize it.
(04:38):
So it's about education,education, education.
Speaker 2 (04:42):
So in one way you can say back to the CFOs you're
already using AI without reallyknowing it, not only in your
personal life.
The example I give if youunlock your phone, you're using
AI.
If you choose a Netflix movie,you're using AI.
So what you're really saying isthat you've got a relationship,
an existing relationship.
You've been using SAP Concurfor years.
Really, they can rely on you tokeep upgrading and making sure
(05:02):
that the latest and greatest AIis baked into the services they
use every day.
Speaker 3 (05:07):
Absolutely.
That is ultimately the promiseof the cloud, isn't it?
To ride the latest cutting edgetechnology in a useful way that
has an immediate impact both onthe end user experience as well
as the business outcomes.
Speaker 2 (05:18):
So one stat that I found interesting was that 58%
of CFOs understand very littleabout AI and finance, yet AI
adoption is increasing, as yousaid.
So what can you do to helpbridge this knowledge gap, and
how does this impact their AIimplementation strategies?
Speaker 3 (05:33):
First, it's like where we see today that
financial professionals areusing AI, and we see it in these
three areas that 65% are usingit with regarding journaling and
bookkeeping, 59% are actuallyusing it in their financial
planning and 53% in their riskscenario planning.
And then another area ofsignificant use of AI is
(05:55):
monitoring for fraud, and we seeabout 50%.
What all of this means is justvast amounts of data is being
put to use, leveraging AI onbehalf of financial organization
in these processes.
Speaker 2 (06:07):
Now, a lot of this is baked in because of the work
that you're doing, but whatspecific challenges do CFOs face
when integrating this AI intotheir existing financial systems
, and how can this be mitigated?
Speaker 3 (06:18):
It's vast amounts of data, it's integrating across
disparate systems, which cloudservice companies such as Concur
does, and many times thatecosystem may be uneven, might
not be the latest technology,not having access to critical
data that's required to powerthe AI.
So that's where we'll talkabout a little bit later in the
(06:40):
discussion of how therelationships and the
partnerships between the CFO,the CIO and HR come to bear.
Speaker 2 (06:48):
So many CFOs in your report cited inaccurate
forecasting and the difficultyof integrating cost control
software with other systems.
So how does SAP Concur'sexpense management solution
address these integration andforecasting issues?
Speaker 3 (06:59):
Out of the box.
We have seamless integration,of course, with the SAP
ecosystem of solutions, but wealso with multiple third-party
solutions, erps, other financialsystems and HR systems.
So, first and foremost, it'sall about the seamless
integration, requiring a littlemaintenance and upkeep by the IT
group.
Second, it then becomes thecleansing of all that rich
(07:22):
information, all that data andthat's the hard work that we're
also doing on behalf of ourcustomers, ensuring not only
access to the right data but, asin the data, in a format that
we can ultimately take advantageof and consume to deliver the
insights that CFOs and theiremployees require.
Speaker 2 (07:37):
I'm so glad you talked about data because well
before, AI was a thing thatpeople were talking about all
the time.
I've been talking for yearsabout the need for good quality
data, and it becomes even moreimportant now that we're looking
at AI systems.
And to train these AI systemsyou have to have data that's in
the right format.
So how does SAP Concur helpactually make sure that data is
in the right format to processit properly using AI?
Speaker 3 (07:59):
That's where the cooperation across the CFO, the
CIO and the CHRO comes together.
It's that collaboration andthat conversation begins.
Andrew, you might say how doesexpense reporting have to do
with HR?
How does expense reporting haveto do with the CIO?
Well, first, this is a solutionthat, to an end user like you
(08:20):
or I, it's a seamless process.
I book my travel, I take mytrip, I complete my expense
report.
To us it's a seamless process,but to those three groups, cfo
is a financial process.
The HR may view it as I need toworry about duty of care and
risk, and the CIO just says, oh,it's another IT process.
So all of these have to cometogether to identify where that
(08:42):
rich information sits.
Let us allow SAP Concur tointegrate with it, and it's that
collaboration that also sets upthe project for future success
with regard to, ultimately, whatis ultimately the success
criteria across all of thosethree groups.
Speaker 2 (08:56):
Now those three groups and those three roles on
the C-suite are now having totalk about AI.
I'm wondering if we were to bea fly on the wall in a board
meeting or an executive meeting,what do you think the AI topics
are being discussed at thatC-suite?
Obviously, the CFO is usingyour software, but does the
executive team really understandthat their level of AI maturity
(09:16):
themselves and this is where Igo into talking about digital
curiosity their own personalunderstanding, their own use of
these tools?
How important is it for theentire C-suite to really be AI
literate?
Speaker 3 (09:28):
I think it's very important.
It gets back to the early partof our conversation about
education.
I think that education is notonly for the CFO, but across the
C-suite.
And then, second, therelationship between the CFO and
the HRO is ultimately changing.
The CHRO function has becomemore of a strategic function
within organizations.
They're having to try to helpand maintain, attract and retain
(09:52):
talent.
So now the CFO and the CHRO cancome together and if you can
provide through AI, simplifyingprocesses, getting rid of the
mundane tasks which manyemployees may have to engage
with and now you're not only asthe things we talked about
earlier financial forecasting,reporting, potential fraud
(10:13):
identification and control allare great benefits, but then can
you also, at the same time,deliver a great experience for
the end user, which then helps,in turn, retain that talent that
you fought so hard to attract.
So we believe that, first, it'san opportunity to bring those
three functions together and,second, for the benefit of every
employee within theorganization.
Speaker 2 (10:34):
So you've been doing this survey for a while, so
you've seen the changes happen.
Where has the shift been fromthe CFO in terms of the biggest
impact that they think AI willhave on their function, from
where it was to where it is now,and do you think they're less?
Speaker 3 (10:47):
afraid of AI.
With regard to the CFO, it wasfirst.
It was about efficiencies.
Second, many employees withinfinancial accounting
organization you said ityourself it's like is this going
to take my job?
And I think all of the whenthat sort of washed over, it
became clear that it's not onlyefficiency, it's greater
accuracy.
Then it's also allowing myemployees to focus on things
(11:08):
which are more important to theorganization, more strategic to
the organization, and it movesfrom cost avoidance to cost
containment to more.
I'm going to focus on more thestrategic level within the org.
Speaker 2 (11:19):
Now you talked about the need for collaboration
between the IT and HR functions.
So CFO comes along.
He or she says we need theseextra functionality.
How does your solution reallymake the IT department's job
really easy, Because there's notmuch for them way, in
accordance with applicable lawsof where the organization
(11:46):
operates.
Speaker 3 (11:46):
So here's where the opportunity for the CFO and the
CIO to work more closelytogether.
Am I using this in aresponsible way that generates
reliable information back andcertainly, third, safeguards my
data and so that I know it's notused or exposed out to the
internet to train these largelanguage models?
So that's where the two cometogether, but then where,
(12:09):
ultimately, in doing thosethings, I also come together in
terms of the end user.
Can they deliver a betterexperience by infusing these
processes with AI?
And we would say, of course,the answer is yes, as
organizations and you've talkedto many, andrew talk about
digital transformation.
What they're really saying islike I've got so much data, how
(12:30):
do I leverage that information,but for the benefit of everyone,
including the end user?
Speaker 2 (12:35):
So, just before we leave, talking about that
tripart relationship between HRand IT and the CFO, what five
things should CFOs know aboutwhen working with HR and IT for
success?
Speaker 3 (12:47):
Certainly, hr is focused on retaining attracting
and retaining the top talent, sothat's where the CFO also cares
deeply about an opportunity topartner there.
Second, we've seen in our datathat the survey showed that 64%
of CFOs believe that the HRfunction helps retain in those
high performers by 56%.
(13:07):
And third, we work in a hybridworld.
Still, for the most part, mostorganizations work in a hybrid
world, so CFOs see thatinvestment in terms of
collaboration along with HR asdriving productivity among the
employees while also drivingtowards your business goals, and
then that ultimately leads intoCFOs and the CIO.
(13:31):
Typically, when organizationsemploy our solutions, it's
driving greater efficiency,visibility in terms of spend and
so forth, but now AI cansupercharge those efficiencies
as well, and so minimizingbusiness costs, overruns and so
forth, and previously we talkedabout help with financial
planning and forecasting and soforth.
So CFOs have the opportunity tosolve a range of problems, from
(13:55):
end user experience that the HRleader cares about to driving
greater efficiencies acrosstheir financial processes and
support in cooperation with theCIO.
Speaker 2 (14:06):
So we've realized that we want to actually invest
in AI.
The problem I think many peopleare feeding back to me is how
do we measure success, how do wemeasure the return on
investment, and the secondreport that I alluded to focuses
on that.
So what do you think the maindrivers are behind the increased
investment in AI?
Speaker 3 (14:22):
I believe it's twofold.
First is the greater efficiency, as we spearheaded.
Second, it was the opportunityto take these mundane processes
which financial departments andemployees on a day-to-day basis
are dealing with, and do thatheavy lifting on behalf of those
employees, on behalf of thoseemployees.
And then, third, by doing allthose things together, the now
(14:44):
CFO has in some wayssupercharged their organization
with regard to their financialreporting, their processes,
identifying mixed risk, butultimately measuring that ROI
starts with what are their goalsat the end of the day?
It's the classic you knowwhat's my hard cost savings
versus my soft cost savings?
Because AI has many soft costsavings, because AI has many
(15:04):
soft cost savings, but also it'sthe hard cost.
So I think, defining upfront,ultimately, what are the
objectives, both the more hardcost savings meaning real either
risk management, betterfinancial reporting, closing the
books faster to the softsavings of the greater
efficiency that employeesachieve across the board, that's
ultimately what needs to bedefined upfront by the CFO.
Speaker 2 (15:25):
So I'm a futurist.
I always look at what's comingnext.
So maybe you could talk a bitabout the potential future
applications of AI in financeand how can CFOs ensure that
they're adopting AI responsibly?
Speaker 3 (15:37):
Oh, great question, because that's always one that
comes up, especially around theperceived risk within AI.
So, first, in terms of what thefuture holds, sap has
introduced Juul, which is adigital assistant that'll work
across all the SAP ecosystem,across the data.
Second, cfos should expect thatgenerative AI is going to
(15:58):
continue to be infused acrosstheir financial processes, but
it's also the CFO'sresponsibility to ensure that
it's done in an ethical and acompliant manner.
And again, that's where youwork closely with your
technology providers such as SAPand SAP Concur.
Third organizations need tohave their own clear guidelines
to both their employees as wellas their suppliers, in terms of
(16:20):
how their data and AI is goingto be used responsibly and
ethically, because, at the endof the day, all of us must
protect our customers' dataBecause, at the end of the day,
it is our customers' data.
So, with clear guidelines,clearly established by our
customers as well as ourselvesworking knowing that AI will
(16:40):
continue to be infused.
And then, third, doing it in anefficient and ethical manner is
key to both parties.
Speaker 2 (16:48):
The other report looks at measuring and
maximizing AI returns.
Speaker 3 (16:51):
Maybe you could give us some key takeaways from that
and what that means for CFOsgoing forward Well it gets back
to our earlier part of ourconversation that measuring ROI
can be difficult because of thesoft cost and hard cost savings.
That said, using best practiceswith regard to data management,
tracking results and ensuringsecurity and privacy, all come
(17:12):
together to deliver that ROI.
And the key is it's clearlyupfront deciding what is most
important to this organizationUltimately, what are their
objectives they're trying toreceive, what is most important
to this organization Ultimately,what are their objectives
they're trying to receive?
And then, third, can you put inmeasurements in place to
calculate that ultimately, todeliver the ROI measurement your
organization requires?
Speaker 2 (17:32):
Now, everyone wants to see some quick wins from AI,
but you and I know that there'sno quick win in any business.
So how do they balance the needfor these quick wins with the
pursuit of long-term strategicbenefits from?
Speaker 3 (17:42):
AI.
I think two things.
First, many AI projects arestill in the implementation
phase, but I think there's anopportunity, such as with
AI-infused services.
Concur provides across financethat there's low-hanging fruit
which organizations takeadvantage of.
Look at the expense reportingprocess.
People would say, okay, so it'sa process that may or may not
(18:04):
be Michigan critical to mybusiness, but it's one that
occupies my employees' time.
So how can I enable myemployees to do their jobs
faster, complete their expensereporting or travel booking
faster, while also being incompliance with my
organization's policiesregarding spending?
It's finding thoseopportunities to have the
greatest impact with the lowestrisk, and I would say expense
(18:25):
reporting, travel booking aretwo areas which represent an
opportunity of low-hanging fruit.
Speaker 2 (18:31):
What role do partnerships with experienced
providers such as SAP Concurplay in maximizing this ROI?
Speaker 3 (18:37):
First, helping identify the quick wins.
Second, also partnering withthese organizations to really
define what is important to themfrom an ROI perspective, what
are the benefits they're trulyseeking, and then how do you
measure those benefits?
And then, third, it's anopportunity where we touch
almost every employee in theorganization, just like email or
(18:58):
other collaboration tool.
So with T&E, you can not onlydrive greater efficiencies, but
every employee can see thebenefits from using this
AI-infused services, thereforebuilding momentum for future AI
projects.
Speaker 2 (19:11):
Yeah, I suppose a lot of people are using AI in their
own private life and whencompanies like Apple we saw
recently Apple launching theApple Intelligence, I've been
playing with it.
It's slowly becoming more andmore useful.
It's not there yet and it's notgoing to replace an assistant
per se, but I suppose whatpeople and I'm wondering whether
the survey bore this out thatpeople are saying well, I'm
using AI in my private life andat home to do tasks.
(19:34):
I would expect that all thethings I have to do as part of
my role, as you say expensereporting, travel booking I
would assume that that's goingto be AI infused.
I suppose the real challenge ishow do we not actually make it
harder but make it easier?
I mean, ai is supposed to makeour life easier, so is that the
goal?
That the employees don'tactually know this is AI infused
(19:54):
?
They kind of expect that it'sthere and making their life and
their job easier.
Speaker 3 (19:58):
I think employees probably do not recognize what
AI is powering what services,whether they use it in their
personal or private life.
But at the same time, we'veseen for years and we've called
it, as well as others in theindustry.
We've called it thecommercialization of the
enterprise.
Employees do expect a level ofpersonalization and seamless and
easy experience from theircorporate applications their
(20:20):
company provides as the same asthe applications they use in
their personal life, whether itbe banking or other
collaboration tools.
So that expectation has beenset for many years.
What AI is doing is nowdelivering on those expectations
creating a personalizedexperience, freeing up employees
from tedious tasks and alsoanticipating what that employee
(20:41):
might want to do with regard tothe next steps in their business
process that you're dealingwith.
Speaker 2 (20:48):
I'm sure if we came back in a year's time, we would
see even more advancement,because not only is the genitive
AI systems, they're going toget smarter and smarter but I
think you're going to see howthe employees use your services
and that's going to really helpinnovation.
So are you using the feedbackfrom your users around the world
?
You have so many customersusing it.
How is that being infused backinto product development to make
(21:09):
the service even smarter andmore cost effective?
Speaker 3 (21:12):
into product development to make the service
even smarter and more costeffective?
Great question.
Well, we're constantlymeasuring how employees are
engaging with our technology,from beginning to end, so
understanding exactly whatthey're doing within our service
, but also asking for continuousfeedback in terms of the
experience that they've received.
So we're taking all thisinformation and, in addition, we
(21:33):
see even our own customers areleveraging our APIs and applying
their own AI within theirsystems to extend what we do
even further by leveraging theirrich information to apply in
unique and different ways.
So we're observing how ourcustomers are taking it and
taking it even forward andsaying, hey, should we take that
(21:53):
and consider that in ourprocess, or is that more of the
purview of the customer tocontinue innovating on?
Speaker 2 (22:12):
we're not always going to want to use the tool
exactly the way you've built it,so I think you're right.
If you can provide an API, youmay find that clients are
actually using the data in adifferent way.
That could actually make sensefor more customers.
So talk to me about howimportant it is to have an open
system and APIs to allow peopleto do what I call crazy things
that actually become productenhancements.
Speaker 3 (22:29):
I think the fundamental premise of cloud
services is truly an openecosystem, providing the APIs
for organizations to leveragethe data on their behalf,
because ultimately it is theirdata and or we don't understand
(22:51):
how to solve those problems butour customers do.
It's their data Expose thatinformation in a secure manner
and let them ultimately takeadvantage of it.
And that's also, I believe,still one of the fundamental
promises of cloud computing.
Is that providing thatecosystem and that open
ecosystem to take advantage anduse that information in ways
(23:12):
that we, as technology providers, haven't even thought about.
Speaker 2 (23:16):
Now your services touch the bare metal of the
organization expense management,booking, travel.
They're things that make theworld go round.
I'm wondering if you've had aclient come to you to say if
only I could do that.
Have you had some reallyinteresting ways that you
thought we hadn't thought aboutthat?
But you've got so many peopledoing all these things.
Travel is not frictionless.
(23:36):
There's always something goingon and with my experience with
TripIt, it allows me to know ifI have to change things.
But talk to me about howclients are really pushing you
to do your best.
Speaker 3 (23:47):
I can point to some solutions such as Concur Verify,
which is our sort of auditingsolution, but it's actually
doing the audit while the enduser is traveling.
So we provide all this richinformation.
We have now a partnership withMasterCard that now brings in
what we call real-timeauthorization data, which you've
experienced in your personallife.
(24:08):
When someone taps and goes, youknow you get the little alert
saying hey, you know, andrew,you know you hopped the tube or
bought something at Boots and soforth.
So now, with all this richinformation coming in, we have
the opportunity to takeadvantage of it.
Taps, validate that that's acompliant transaction, instead
(24:32):
of after they tap he's done withtheir trip, and so forth at the
back end.
Why can't you just move allthose processes up to the front
end?
You know meeting the user wherethey are when they're working.
So our Concur Verify is one ofthe solutions where our
customers say can we do itearlier in the process to
deliver a better experience forthe user?
But even while they'retraveling they know whether
(24:53):
they're in compliance or not,versus waiting where the money's
been spent, the trip is overand they're just simply trying
to reconcile their expensereport.
Speaker 2 (25:00):
And that's down to that user expectation.
So in my personal life, when Ibuy something on my Monzo card
or my HSBC card, I get themessage back.
If it then transfers over intoyour business life, they're
probably more likely to becompliant because you've now got
the information.
Oh, I didn't know that I wasn'tallowed to buy that or I'll do
that again.
So are you seeing that it'sactually changing end user
(25:22):
behavior by giving more realtime, more accurate information
to the end user at the point ofpurchase?
Speaker 3 (25:29):
purchase.
We believe it's early days, butwe have some data that shows.
Look on average, if I recallproperly, expense reports are
returned about 14, 14.5% of thetime to the employee for some
reason, typically data error,incorrect expense type and so
forth.
With ExpenseIt another one ofour AI power solutions, which we
(25:51):
had over 10 years it's actuallybuilding.
Once you take the photo of thatreceipt and so forth, it
actually creates that expensetransaction by extracting the
relevant information, which saysyou know, we always say that
humans introduce error throughkeystrokes and so forth.
So the return rate goes 14% toliterally over 1%.
So imagine the benefit to anend user to say, hold on a
(26:15):
second, I'm not getting thesereturned to me anymore because
also it's doing it on my behalf.
So that drives compliantbehavior.
It creates sort of a virtuouscycle and that's just one of the
examples that end usersdirectly benefit, but the
organization benefits becausethey have cleaner data.
I have happy users, lessreports being returned and so
forth.
So everybody wins.
Speaker 2 (26:34):
And it may not be something that's really obvious,
but if you join a largeorganization I was at IBM and we
were using your system as wellIf you know that from day one,
you're going to have lessfriction in doing expense
management and claiming expenses, it's going to make your life a
lot easier and you can focus ondoing what you've been employed
to do, which is probably beingin front of customers traveling
around the world, doing whatyou've been employed to do,
which is probably being in frontof customers traveling around
the world, being jet lagged, nothaving to worry about all the
(26:55):
expense management stuff.
So almost like as you arerecruiting oh, by the way, we
have SAP Concur with all the AIbuilt in, so you're going to
have a great experience byworking with us.
That could actually be back toHR a plus to say if you come and
join us, we're going to makeyour life a little bit easier.
Speaker 3 (27:11):
Absolutely, and we've seen where we've talked to some
of our customers, where theiremployees will ask what to use
if you're hiring for a marketingperson, what's your marketing
automation system that you'reusing?
But we've had also employees orpotential future employees ask
what are you doing from anexpense reporting standpoint,
especially as I have the goodfortune to travel around the
(27:31):
country and people recognize mylogo on my luggage tag as being
with SAP Concur.
They immediately say I loveConcur, or I used to love Concur
, but I'm now working for acompany that doesn't have Concur
.
I'm bugging them to get Concurbecause it saves me time.
Speaker 2 (27:47):
There's growing concern around the ethical and
security risks of AI, and I haveto talk about this with clients
all the time.
Ethical and security risks ofAI, and I have to talk about
this with clients all the time.
How do you address the risks inAI-powered travel and expense
management tools to ensure thatthere's responsible?
Speaker 3 (28:00):
AI deployment.
First, with SAP and SAP'sapproach to business AI, it is
our responsibility to protectthat data and to utilize our
technology in a way that'sreliable and responsible.
First and foremost, we willnever expose a customer's
company data to a large languagemodel.
Ultimately, at the end of theday, it is our customer's data
(28:22):
and should always be protectedand private.
We will never make it publicavailable.
Second, we're adhering to thehighest standards of
cybersecurity and also GDPR.
Third, we also care about thepotential negative impacts that
AI could bring with regard toethics and so forth, and so at
the center of everything thatSAP does with regard to AI and
(28:45):
SAP Concur is that it'shuman-centered AI development,
so, in doing so, striving toeliminate any bias or
discrimination that could comethrough these AI mobs.
Speaker 2 (28:55):
The whole bias thing is so important, and one thing I
advise clients to do is thinkabout diversity when you're
training these models, becausethese models are trained by
humans.
We introduce a bias in there.
So by ensuring at that timewhen you're training systems and
setting them to work, by havinga very diverse workforce
working across, that it reallyensures that you're removing
those potential bias issues.
Great point, great point Andrew.
(29:17):
So the report notes thatorganizations should also
consider long-term investmentsin data management and talent.
So how does SAP concur?
Support companies in buildingthe foundational data and AI
skills necessary for thissustained success?
Speaker 3 (29:30):
We try to do the heavy lifting on behalf of our
customers.
So it gets back to theintegration with disparate
third-party systems that couldbe across the customers back end
and so forth.
Second, it's also continuing toeducate our customers in terms
of how we're utilizing that AIinformation.
And then third, ai for us isnot a standalone SKU.
(29:53):
It's just ultimately part ofthe service in terms of making
it more efficient, moreeffective from a financial
reporting perspective and alsojust delivering a better
experience for all usersinvolved.
Speaker 2 (30:06):
So, while many companies focus AI on cost
reduction, some are targetinggrowth and innovation.
Final question before we go tothe quickfire round how has SAP
concurred helping businesses gobeyond tactical improvements to
leverage AI for strategicadvances like innovation?
Speaker 3 (30:22):
I would say, andrew, it's not only just about cost
reduction but most importantly,it's about productivity gains as
one of the main drivers forchange.
Even before the AI wave,everyone was talking about
digital transformation, but whatthey were really trying to say
was I'm looking for productivitygains and insights with helping
move my business forward.
Second, to your questionearlier we listen to our
(30:42):
customers in terms of whatthey're facing now, but as they
look around the corner, what dothey see in the future?
And we're looking to continueto take that information, that
feedback, and ultimately help itshape our roadmap for our
future solutions.
And then, third, as an example,we continue to build upon our
existing services.
Concur, travel Everyone knows intheir personal life and
(31:04):
professional life.
They know how to book a trip,but how can they do it in a more
efficient way that ensurescompliance?
So we've now integrated ourrequest tool so someone can.
Where many organizations havepre-travel authorization, they
can now using AI.
It's like I'm traveling tovisit with Andrew in London from
Phoenix Arizona.
(31:24):
What should my air and hotelcost me so I could plan for that
and my manager ultimatelyapprove?
In addition, you know Imentioned the MasterCard
partnership, bringing that richinformation at the time of tap
or the time of swipe, to informusers to what's compliant and
not, but also to help themalready begin to build their
expense report so they don'thave to do it on the backend.
And third, looking forward tohaving Juul Digital Assistant,
(31:48):
which will traverse all the SAPecosystem, leveraging the rich
information and all these SAPapplications and so forth, and
it goes on and on.
But at the end of the day,everything I've just talked
about it's data, data, data.
We're only going to be as goodas the data that we have access
to, the data that we canaggregate, the data that we can
cleanse, and that requirescomplete cooperation again, cfo,
(32:10):
chro and the CIO.
Speaker 2 (32:15):
Now you're surveying the CFO for the insights report.
You're doing it relativelyregularly.
When's the next time we'regoing to see more insights
coming out?
And if you had a crystal ball,if you're a futurist, where do
you think the needle will movein the next phase of the report
that comes back and the insights?
Speaker 3 (32:29):
Well, we do the CFO report typically on an annual
basis, and then we'll sprinklein if there's specific
information we're desiring,based on what's going on in the
marketplace, we'll do that.
In between, I believe that AIadoption will continue to
accelerate and that it'll becomeeven more important than the
(32:51):
data says today.
With regard to that, second, Ithink that we'll also come back
that continued concern over dataprivacy and security will
remain high, because we heartoday, andrew, how the models
are running out of data and nowthey're creating synthetic data.
What implications does it have?
So, as these models are onlypowered by data, and how shifts
(33:15):
in terms of training them, Ithink, will raise new challenges
, but also opportunities thattechnology providers such as SAP
have to address, but also thoseCFOs have to address.
Speaker 2 (33:25):
So we're almost out of time, but we're up to my
favorite part of the show, thequickfire round, where we learn
more about our guests.
I'm going to fire somequestions at you, iphone or
Android.
Speaker 3 (33:33):
Oh iPhone Window, or aisle, oh window, every time.
Speaker 2 (33:37):
I wish that AI could do all of my.
Speaker 3 (33:38):
My wife's to-do list.
Speaker 2 (33:40):
The app you use most on your phone TripIt.
What's the?
Speaker 3 (33:42):
best piece of advice you've ever received Decide what
experience you want to haveversus what your next job
opportunity is.
What are you reading at themoment?
Oh, I'm reading SalmanRushdie's book called Knifed.
I have it right here at my feet.
How do you stay digitallycurious?
I try to consume as muchinformation from a variety of
sources, always being consciousnot to be in an echo chamber
(34:05):
where we're just beingreinforced by the ideas that we
currently have, so I'm a digitalnomad with regard to the
information sources I'vesubscribed to.
Speaker 2 (34:14):
Who should I invite next?
Speaker 3 (34:15):
onto the podcast.
I would invite a frequenttraveler from one of our large
organizations to understand whattheir experiences are and what
the experiences they desire inthe future.
Speaker 2 (34:28):
That's a great idea.
I love that Final quickfirequestion how do you want to be
remembered?
Someone who is kind?
So, as I'm the actionablefuturist, what three actionable
things should our audience dotoday to prepare for the
opportunities from AI?
Speaker 3 (34:41):
I think, first and foremost, continue to educate
themselves with regard to theopportunity that AI represents
and how they can apply it withtheir own organization.
Second is it's stepping acrossthat aisle, partnering closely
with their CHRO and their CRIOas they continue their digital
transformation.
And then, third, just as wehave, is like always asking that
(35:05):
it has to be a better way, andchallenging everyone in the
organization and every vendor,whether it be technology or
otherwise they work with, interms of how do I make my
business run better and is therea better way?
Speaker 2 (35:18):
Chris, this has been a fascinating discussion.
How can we find out more aboutyou and your work?
Speaker 3 (35:22):
Well, certainly through Concurcom and so forth,
and feel free to follow me onLinkedIn to learn more about
what we're doing and what ourcustomers are doing.
Speaker 2 (35:32):
Chris, it's been a great discussion and no pun
intended, but travel safely.
Speaker 3 (35:36):
Thank you so much, andrew, you as well.
Speaker 1 (35:39):
Thank you for listening to Digitally Curious,
brought to you by SAP Concur.
You can find all of ourprevious shows at
digitallycuriousai.
Andrew's new book, digitallyCurious, is available now at
curiousclick forward.
Slash order Until next time.
We invite you to stay digitallycurious.
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