CFOVILLE

Martino Cadoni

AI is a powerful tool, ready to deliver CFOs all sorts of insights on a company’s financial performance, nearly instantly. The problem for many, though, is the quality of the data (or lack thereof) those AI tools are drawing from. Indeed, only 11% of executives believed their data quality was sufficient for AI, and more than a quarter (27%) said poor data quality was blocking AI deployment in certain workflows, according to a recent Workiva survey of nearly 2,300 finance, risk, and sustainability pros globally.

A solid data foundation—one that has “complete, accurate, reliable” data—allows organizations “to really maximize the use of technology tools and also AI,” Martino Cadoni, CFO of language translation platform DeepL, told CFO Brew. An organization “can have the best AI tools in the world,” but that doesn’t mean much if their output is based on bad data.

“As a CFO, you really need to ensure that before you implement all these very sophisticated and fancy AI tools, you have a reliable, strong data foundation, which then enables you to trust whatever AI does,” Cadoni said. “If you don’t have confidence in the data layer, then everything else is really questionable.”

How DeepL’s CFO ensures the quality of internal data.—AZ

      

Sponsored By AvidXchange

AI for the financial eye can mean a lot of dollars out, but what are you really getting back?

AvidXchange’s latest blog explores how AI ROI in finance can expand beyond efficiency and hours saved. It now includes better forecasting, faster decision-making, improved accuracy, and long-term business growth.

79% of finance leaders are confident their organization can achieve maximum ROI from their AI investments. Another 42% of finance leaders say AI helps their teams complete work faster or accomplish more in the same time.

High-performing finance teams reinvest their AI gains: 44% goes into additional technology or automation, 44% into data security and compliance, and 32% into expanding the business.

Maximizing AI ROI requires ongoing measurement like identifying clear use cases, tracking business outcomes, and building on what works.

Read the full blog post here for all the insights.

FRAUD

Krblokhin/Getty Images

It’s safe to say that getting charged with a fraud scheme connected to the billion-dollar collapse of a company is definitely…subprime.

On August 18, the Securities and Exchange Commission charged the former CEO, CFO, and senior director of finance of subprime auto lender Tricolor Holdings for their roles in an alleged multiyear scheme to defraud investors.

The SEC’s complaint alleges that from “at least 2020” up until Tricolor’s bankruptcy in 2025, the auto lender’s CEO, Daniel Chu; CFO Jerome Kollar; and senior director of finance Ameryn Seibold made “numerous false and misleading representations to investors about the lender’s overall financial health, portraying the company as financially sound despite knowing that Tricolor was facing significant liquidity constraints and struggling to fund its operations.”

At the same time, the company raised over $1.9 billion via asset-backed securities offerings, and the SEC alleges Tricolor “represented that the loans included in the ABS collateral pools were free and clear of any other liens when the defendants knew that many had been or would soon be double pledged.”

“A forensic firm retained by the Tricolor bankruptcy trustee has concluded that, due to Tricolor’s double-pledging and fictitious loans, Tricolor’s borrowing base was inflated by at least $675 million,” the SEC complaint said.

The SEC accused the three execs of violating “the integrity of our private credit markets.”—NP

      

Sponsored By Celigo

Keep your cool. AI workflows already cost some enterprises tens of millions a month, often with unclear ROI and little oversight. Our latest article with Celigo shows finance leaders how a single-platform governance model can bring cost accountability to AI before Q4 spend spikes. Read it here.

POLITICAL RISK

Morning Brew Inc.

TL;DR: There might be nothing more politically unpopular right now than being a data center cheerleader. Politicians on both sides of the aisle are taking note—and changing their stance—as the midterm elections approach, while AI companies are desperately trying to buy back some goodwill.

What happened: In an interview this past Sunday, Texas Gov. Greg Abbott declared that AI companies “dug their own grave” amid the data center backlash they’re facing—weeks after he ordered a moratorium on new data center power approvals in the state.

It’s a big shift in tone from a governor who called Texas the “epicenter of AI development” last November. And he’s far from alone: An analysis from The Washington Post shows that American politicians have gotten a lot more negative about data centers since last year. Republican leaders have typically been more welcoming of them than their Democratic counterparts, but a few pro-data center elected officials have either lost their elections or faced recalls in recent months. Now, politicians from both parties are adjusting their stance and ramping up attack ads accusing opponents of being too data center-friendly.

AI’s expensive charm offensive: AI firms, meanwhile, are probably feeling the walls closing in on them. In a private memo that leaked last week, the National Republican Senatorial Committee told AI companies to fix their PR problem, saying they had a “toxic brand.”

Tech Brew reports on how AI firms are “scrambling” to improve public opinion.—WK

      

market forces

Francis Scialabba

Today’s top finance reads.

Stat: $30 trillion. That’s the size of the total addressable market that Anthropic will reportedly pitch to potential investors in its upcoming IPO. That would exceed SpaceX’s historic projection of its TAM at $28.5 trillion. (the Wall Street Journal)

Quote: “I don’t want to prejudge anything. But I believe now is the time to [raise interest rates]. I believe that we’ve been in an inflationary situation for more than five years. It’s been running well above our target. I don’t see any restriction in policy when I look at financial conditions and when I talk to market participants.”—Cleveland Federal Reserve President Beth Hammack (CNBC)

Read: Shoppers are loving dollar stores as they opt for cheaper products. (Reuters)

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