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- How to Define AI-Ready Processes (and Fix What’s Broken)
How to Define AI-Ready Processes (and Fix What’s Broken)
Also: A Quick Self-Assessment to Find Out If Your Processes Are Ready for AI

As finance teams increasingly look to integrate AI into their operations, process readiness has emerged as a critical success factor. While AI promises automation, efficiency, and deeper insights, it cannot fix broken processes.
Many finance teams jump into AI adoption expecting immediate gains, only to find that AI magnifies existing inefficiencies rather than eliminating them. The key is process readiness. Ensuring your workflows are structured, standardized, and optimized before implementing AI guarantees better accuracy, efficiency, and ROI.
This article explores why process readiness matters, how to assess your team’s current workflows, and what steps to take before layering AI into your finance operations.
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The Balanced View: The CFO’s Guide to AI Process Readiness
Process readiness refers to the state in which financial workflows are structured, streamlined, and standardized so that they can seamlessly integrate with AI.
A finance team with high process readiness has:
Clearly documented workflows
Standardized data inputs and outputs
Well-placed control points to ensure accuracy and compliance
Defined approval and decision-making steps
Identified areas where AI can add value
If your processes are disorganized, AI will not drive efficiency—it will accelerate the chaos.
Why Process Readiness Matters for AI Implementation
AI Excels in Processes with Clear Control Points
AI is powerful, but it needs human oversight at the right points to be effective. If financial workflows lack well-placed control points—such as validation checks before AI finalizes financial statements—there is a risk that AI-driven decisions could go unchecked, leading to errors, financial misstatements, or compliance violations.
Example:
A company used AI to automate expense approvals, but the AI system lacked proper threshold controls for flagging suspicious transactions. Without human validation for expenses over a certain limit, the system approved fraudulent expenses that went undetected for months.
AI Does Not Fix Poor Data Flow
AI models depend on structured, clean data. If your invoice processing, budgeting, or reporting workflows involve inconsistent data entry, missing fields, or duplicated work, AI predictions and automation will be unreliable.
Example:
A company using AI-based revenue forecasting struggled because sales teams provided different data formats across regions. Some included discounts in revenue numbers; others did not. AI could not generate reliable forecasts due to inconsistent inputs.
Better ROI on AI Investments
AI implementation requires a significant investment of time, resources, and cost. Optimizing processes before AI adoption ensures that AI delivers real value rather than wasting effort on broken workflows.
Example:
A company wanted to implement AI to automate financial close reporting. However, the month-end process was already delayed due to late journal entries. Instead of speeding up the process, AI became a bottleneck because it relied on incomplete data.
Steps to Improve Process Readiness Before AI Adoption
Document and Map Existing Financial Workflows
Many finance teams lack clear documentation for their processes. Before AI implementation, create a step-by-step map of how key workflows operate today.
Example: Invoice Processing Workflow
Identify how invoices enter the system (email, ERP, manual entry).
Map out approval steps—who signs off, where delays occur.
Highlight where AI can enhance efficiency, such as automating invoice categorization or flagging anomalies for review.
Ensure Workflows Have Well-Placed Control Points
AI should not operate in a black box. Finance teams must define the right control points to ensure oversight, accuracy, and compliance.
Example:
A company implemented AI-driven cash flow forecasting, but without a human review checkpoint, AI-generated forecasts missed critical business changes (e.g., upcoming large customer payments). After adding a finance team review as a control point, AI forecasts became significantly more reliable.
Standardize Data Formats and Inputs
AI thrives on structured, clean data. Ensure that all financial data is consistent, labeled, and formatted correctly.
Example:
A company used several inconsistent templates in the budgeting process. Before implementing AI-based forecasting, it reviewed and unified the templates to establish a consistent format across departments.
Case Study: AI Readiness in Financial Planning & Analysis (FP&A)
A company sought to use AI to automate variance analysis and forecasting. However, an initial audit revealed:
Finance teams manually adjusted budgets without tracking changes
Variances were explained inconsistently across departments
No standardized assumptions for AI forecasting models
Fixing Process Readiness First:
Standardized variance reporting approach
Defined approval workflows for budget changes
Established AI validation controls to flag high-risk variances for human review
Result: AI-generated forecasts became more accurate and actionable, helping finance teams make faster and better-informed decisions.
The Role of Finance Leaders in Process Readiness
While CFOs may not handle AI's technical aspects, they must drive process readiness by ensuring finance teams:
Prioritize Process Improvement – AI amplifies efficiency, but only when built on a solid foundation. CFOs should optimize workflows before introducing AI to ensure smooth integration.
Establish AI Governance & Control Points – Clearly define who oversees AI outputs and ensure critical validation checkpoints are in place for financial reporting, forecasting, and compliance.
Foster a Culture of Continuous Improvement – AI adoption is an ongoing process, not a one-time project. Finance leaders should encourage teams to regularly refine workflows to maximize AI’s impact.
CFOs who take ownership of AI process readiness will set their teams up for long-term success.
Final Takeaway: Do Not Automate Until Your Processes Are Ready
Optimized processes = better AI outcomes
Well-placed control points = greater accuracy and compliance
Standardized data = more reliable AI insights
AI is not a magic fix for broken finance processes. The organizations that prepare first will see the biggest benefits.
Remember, AI readiness is a key part of my value proposition. If you want to conduct a 360° AI assessment for your organization and ensure a smooth, high-impact AI implementation, let’s talk!
AI Process Readiness: Quick Self-Assessment
Instructions:
Answer each question and total your points at the end to gauge your finance team’s AI readiness.
1. Are Your Processes Clearly Defined?
(3) Yes, all workflows are documented and standardized across teams.
(2) Partially, some workflows are documented, but inconsistencies exist.
(1) No, processes vary across teams with little formal documentation.
2. Do Your Workflows Have Well-Placed Control Points?
(3) Yes, review and validation steps are defined, and AI decisions can be overridden.
(2) Somewhat, but control points are not consistently applied.
(1) No, AI outputs lack clear validation or review processes.
3. Is Your Data Structured and Standardized?
(3) Yes, financial data follows a standardized format across systems.
(2) Partially, but inconsistencies exist in how data is stored and used.
(1) No, data structures vary widely, leading to inaccuracies.
4. Have You Identified AI Automation Priorities?
(3) Yes, we have identified tasks that AI can automate vs. those requiring human oversight.
(2) Partially, but we have not prioritized or categorized them clearly.
(1) No, we have not assessed automation opportunities.
5. Are There Clear Integration Points for AI?
(3) Yes, we have mapped AI into our finance workflows with a clear strategy.
(2) Somewhat, but integration planning is incomplete.
(1) No, we have not defined how AI will fit into our workflows.
Assessment Results
12 – 15 Points: AI-Ready
Your finance team is highly process-ready, and AI can be successfully integrated with minimal adjustments. To maximize efficiency, focus on fine-tuning your AI strategy.
8 – 11 Points: Moderate Readiness
You have some AI-compatible processes, but gaps exist. Before implementing AI fully, address data standardization, control points, and automation priorities.
5 – 7 Points: Not AI-Ready Yet
Your processes need significant restructuring before AI can be effectively deployed. To create a strong foundation, focus on documenting workflows, standardizing data, and establishing oversight.
Closing Thoughts
AI is only as effective as the processes it supports. Before jumping into automation, finance teams must ensure their workflows are structured, standardized, and optimized. By defining AI-ready processes and fixing inefficiencies upfront, you’ll unlock the true benefits of AI—greater efficiency, accuracy, and strategic insight.
AI readiness doesn’t stop at processes. In the next three editions, we’ll dive into the other critical aspects of AI readiness for finance teams—People Readiness, Data Readiness, and Governance Readiness. Stay tuned for these insights.
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Until next Tuesday, keep balancing!
Anna Tiomina
AI-Powered CFO
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