Table of Contents
01
Key findings
02
The why behind AI
03
The what of AI
04
The when of AI
05
Expert analysis
Survey report 2025: The state of the PE sponsor & CFO Relationship

AI in the finance function

PE sponsors to portfolio CFOs:

"Accelerate your adoption of AI."

PE-backed CFOs understand their mandate: sponsors want them to leverage AI for finance workstreams to drive value creation. And they want them to do it now, using this period of tariff-induced uncertainty and (likely) elongated hold periods as an opportune time to invest in tech-enabled finance pro­cesses. That said, the pace of AI adoption has been far slow­er than sponsors want. Why? CFOs say that it’s because they have no idea where to start or who to turn to for help.

98%
of sponsors
have told their portfolio company CFOs to prioritize the use of AI in the finance function

Download the full report.

Our contact form is currently blocked by your cookie preferences. Please change your preferences to continue.
01

The why behind AI

More and more, AI is being viewed as a critical compo­nent of value creation. And in this environment of limit­ed multiples and tariff-induced recessionary fears, value creation is more important than ever before.

99%
of sponsors
say AI adoption within the finance function will be critical to value creation
Top 3 reasons for implementing AI

Sponsors believe AI’s potential goes beyond value creation. In terms of its broader benefits, AI adoption satiates LP demands, making it a critical factor for sponsor fundraising. It is also a val­ue-enabler when preparing for an eventual sell-side process. And, more tangibly, AI can acceler­ate workstreams (thereby increasing revenue capture), can minimize error rates, and can improve compliance.

Expert Analysis

The benefits of AI among some of the more prominent use cases are notable:

  • For AI-enabled close automation, for example—which would include solu­tions to expedite, streamline, and improve visibility into close processes through AI-powered close checklists, automated reconciliations, and flux analyses—CFOs can realize a 20-30%+ reduction in days-to-close, re­duced error rates, and improved audit and compliance outcomes.
  • The introduction of AI can expedite full invoice-to-cash processes, in­cluding credit checks, invoice matching, deductions, and collections cor­respondence with customers. In this use case, finance teams can realize a 5-15% reduction in DSO, and a 10% reduction in bad debt.
  • For cash flow forecasting—including 13-week cash flow models lever­aging machine learning tools to analyze historical baseline, recommend forecasting methodologies, populate standard outputs, and analyze vari­ances and cash management opportunities—benefits include more ac­curate cash flow predictions, and improved cash flow visibility and fore­casting.
  • AI can also be applied to contract intelligence, whereby it is leveraged to automate extraction and analysis of supplier contractual terms. This en­ables the comparison of pricing, invoicing, and payment terms to actual operations, and the identification of cost and working capital improve­ments. AI-powered contract intelligence benefits include a 25-30% re­duction in manual contract review activities and better identification of supplier contract non-compliance risks and mitigants.
02

The what of AI

When it comes to CFO adoption of AI, most are still only in the very early phases (with a notable amount having not implemented AI at all yet).

The state of CFO adoption of AI within the finance department:
The reasons CFOs have not deployed AI more broadly in the finance function:

For those who are not yet far down the path of AI implementation, sponsors believe that, at least initially, CFOs should use AI to make their foundational financial workflows more efficient.

99%
of sponsors
say that AI adoption should begin with discrete and practical applications related to finance workstreams

Close acceleration and invoice-to-cash process automation are just two of those workstreams. There are many other use cases for which sponsors and CFOs believe AI can have an immediate impact.

Top 10 workstreams ready for AI-disruption
03

The when of AI

The time for AI is now—according to sponsors, who have thus far been frustrated by portfolio CFOs’ slow pace of adoption.

The reasons CFOs have not deployed AI more broadly in the finance function:
Why it matters

The concern about the data environment not being optimized for AI is a rea­sonable one.

The stronger the data, the more value AI can create.

A “strong data environment” looks like a flexible data warehouse encompass­ing structured and unstructured data sources. It also includes the requisite systems to quickly, repeatedly, and reliably clean internal and external data sources that are critical inputs for GenAI models. And finally, it leverages cloud technology or services to support larger volumes of data.

Now, if you are a CFO, we’re not suggesting that your data environment needs to be perfect to invest in AI. Quite the opposite. Imperfect data can become an unfortunate psychological and organizational barrier to starting the disrup­tion journey—but it shouldn’t be. Instead, CFOs should take a dual approach to dealing with data issues:

  • First, identify those areas where the data, infrastructure, and processes are good enough to inject AI or GenAI. This toe-in, discrete approach allows the organization to start creating AI-related value and muscle memory for more extensive efforts.
  • Second, simultaneously launch a structured initiative to improve data infrastructure and management. Work with the CIO to establish a single source of truth across the organization through master data management, data strategy (augmenting internal data with external sources), data infra­structure, KPI refinement, and reports or dashboard development. Doing this will provide the organization with the integrated data and business intelligence infrastructure needed to improve decision-making and multi­ply the impact of AI.
Why it matters

Sponsors’ accelerated timeline isn’t just about capturing value creation more quickly, it’s also about making the most of this period of delayed deal activity.

It’s an important disconnect to acknowledge, and for sponsors to address. CFOs need to know that uncertainty should not stop AI adoption, but instead should accelerate it.

And while sponsors communicate this message to CFOs, they would also be wise to address CFOs’ concerns about not knowing where to start. They can do so by connecting them with the right part­ners to help them effectively navigate their AI journey.

Expert Analysis

CFOs probably have dozens of tech vendors or consultants knock­ing on their door and flooding their inbox with AI/GenAI promises. If you’re a CFO, you should look for partners who understand where AI/GenAI does and does not add value specific to the unique and nuanced requirements of PE-backed CFOs. You also need experts who “get” your sponsor’s expectations and goals. This means they must:

  • Pass the practicality test: You need a partner who can make AI/ GenAI “real” by assembling a cross-functional team of financial and technical experts who will curate and implement solutions that drive measurable value…now.
  • Fix the data: You know that it’s essential to have solid data in order to maximize the value of AI/tech. So, you need a partner who can actually get your data environment ready for tech-enablement.
  • Have repeatable processes to solve your problems: You want a partner who serves as an expert general contractor, bringing a ready-to-go ecosystem to optimize the benefits of AI/GenAI. These partners have proven processes—they have done this again and again in a PE-backed environment.
  • Bring a holistic approach: By this, we mean a partner who looks beyond the tech to help fix the people and processes that underlie workstreams and contribute to their efficacy.
Ready to begin your AI journey?
We are uniquely focused on helping private equity-backed portfolio companies drive value through their finance function.
Tell us where you need help

About Accordion

Accordion sits at the heart of private equity—where sponsors and CFOs meet. Through financial consulting rooted in data, technology, and AI, we help clients drive value. Our services support the Office of the CFO across all stages of the investment lifecycle—including foundational accounting, strategic financial planning and analysis enhancement, CFO-led performance, transaction support, and turnaround and restructuring solutions. Accordion is headquartered in New York with ten offices around the globe. 

Survey Methodology

The State of the PE Sponsor & CFO Relationship survey was conducted by Accordion, in conjunction with Wake­field Research, among 400 total par­ticipants—including 200 private equity (PE) sponsors (senior executives) and 200 chief financial officers (CFOs) at private equity-backed companies with $50 million or more in annual revenue. The CFO and PE sponsor samples were collected in April 2025, using an email invitation and an online survey.