Supply Chain Investment in AI Requires a Strong CSCO-CFO Partnership

Only 15% of chief financial officers view supply chain as one of the top areas in which they should be credible and knowledgeable. As a result, many chief supply chain officers struggle to gain exposure for critical priorities, such as securing the budgets they need for investments in artificial intelligence.

When CFOs lack confidence and visibility into supply chain operations, CSCOs’ concerns risk being sidelined. The result is misaligned AI roadmaps, unrealistic return-on-investment targets for initiatives, and missed opportunities to deploy AI for long-term value.

Nearly half of CFOs feel least credible weighing in on supply chain topics, ranking them alongside cybersecurity and environmental, social and governance (ESG) concerns. Even more telling, only 34% count the CSCO among their top five partnerships for achieving their objectives. The disconnect is more than just a lack of knowledge — it reflects a fundamental misalignment in how supply chain value is communicated and understood.

With their focus on metrics such as margin improvement, cash flow and efficient growth, CFOs may see supply chain as a cost center rather than a strategic lever. Meanwhile, CSCOs too often talk in operational terms about automating warehouse picking, speeding up order routing or reducing lead times — important goals, but not the ones that capture a CFO’s attention. 

The result is that supply chain AI investments get lumped in with underperforming digital projects: 67% of CFOs say their current digital investments fall short of expectations, and just one-third of C-suite leaders report that overall business results for implementing new technologies and innovations exceeded expectations.

To bridge this gap, CSCOs must translate AI capabilities, risks and constraints into clear business trade-offs that directly impact financial performance. For example, instead of debating cycle-time reductions in abstract terms, CSCOs should sit down with CFOs to show how AI can help improve business performance by reducing safety stock, cutting inventory carrying costs, or providing customized products for customers.

Gartner’s survey of C-suite leaders in evaluating CSCO effectiveness reveals a clear expectation: Supply chain should play a collaborative role in helping to remove obstacles, anticipate risks and drive companywide objectives. Leading CSCOs don’t just manage costs; they innovate, challenge assumptions and make the case for proactive AI investments that protect growth and mitigate risk.

This may take the form of framing the business case for AI around a clear financial impact, by outlining specific figures for working capital that could be freed up, or how AI could boost gross margin. By translating AI capabilities into specific dollar-and-cents outcomes, CSCOs can turn CFOs from budget gatekeepers into project champions.

To put this mindset into practice, CSCOs should focus on three key actions:

Establish data transparency. Create a single source of truth for AI performance, grounded in mutually agreed-upon definitions and metrics. This transparency builds credibility and ensures that both supply chain and finance are working from the same set of facts.

Connect supply chain initiatives to financial outcomes. Use analytics such as cost-to-serve or scenario modeling to clearly illustrate how AI use cases can impact profitability, cash flow and growth. Make trade-offs explicit, and frame proposals around the financial metrics that drive CFO decision-making.

Engage in strategic dialogue. Move beyond annual budget cycles by initiating regular, forward-looking conversations with the CFO. Gartner finds that 42% of a CSCO’s effectiveness comes from working across departments to achieve organizational goals. By meeting regularly (not just at budget time) to review AI roadmaps, evolving risks and financial priorities, CSCOs can reinforce cross-functional collaboration and ensure that supply chain initiatives remain aligned, relevant and well-supported.

When CFOs see AI investments delivering measurable financial returns, they become powerful advocates instead of skeptics. CSCOs who learn to speak the CFO’s language and act with the urgency that today’s market demands will secure the resources they need.

Benjamin Jury is a senior principal in Gartner’s Supply Chain Practice.