Good morning. If you’re a CFO, you've been in a board meeting—or will be very soon—communicating your plan to invest in AI. For some insight into that process, I sat down with veteran tech CFO Mark Hawkins. His first piece of advice? “Clearly and unambiguously define the use case.”
“The less difficult it is to understand, the more credible the opportunity,” he explained. “When people can't explain it, as a seasoned executive, it creates a yellow flag for me.”
Hawkins spent more than 40 years in corporate finance, most recently as president and CFO of Salesforce, which then appointed him president and CFO Emeritus, a position he held through November 2021. He’s also been CFO at Autodesk and Logitech, and he held various positions at Dell and Hewlett-Packard (HP).
Bringing it back to AI, it's important for CFOs to share with board members “the math, the ROI, the metrics of success" to help build credibility but also be transparent about any risks, and work on building trust, Hawkins said. “It would be wise to really articulate the governance framework for technology,” he added.
It's also important to make clear the opportunities and potential outcomes—and how those align with the company's overarching goals and principles.
“When you're presenting to a super-sophisticated group of technologically advanced people, and most of them could have deep engineering and science backgrounds, it's a different level of dialogue,” Hawkins continued. Use cases often require additional details, for example.
By 2027, spending on AI software likely will grow to $297.9 billion, with a compound annual growth rate of 19.1%, according to Gartner. The firm’s research also found that boards are asking about AI more than three times as often as considerations tied to cloud computing.
During our conversation, I asked him his personal thoughts on AI, which he compared to electricity, also “a big paradigm.” Artificial intelligence, he said, is going down the path of augmenting people’s abilities and productivity, a journey that potentially includes significant value creation and a chance to create business models that don't yet exist.
Hawkins also took a moment to reflect a bit on his own journey, including when, at age 21, he joined HP—at the time, a $3.1 billion company. In 2023, its annual revenue was $53.7 billion.
“It was the beginning of my journey into technology," Hawkins said, "and I’ve been there ever since."
Sheryl Estrada
sheryl.estrada@fortune.com
