Good morning. AI has remained a hot topic over the past few years. But at this point, CFOs should be solidifying a game plan on how to strategically implement the technology.
I had a conversation about this topic with Dan Durn, CFO and EVP of finance, technology services, and operations at Adobe. As the CFO of a Coins2Day 500 software giant, he shared some insight on what finance chiefs should be preparing for.
When it comes to AI, 2025 and 2026 are going to be the years of “real differentiation in the market between the companies who are focused on productivity benefits and unlocking that for customers, as opposed to those that are taking a more novelty approach to the technology,” Durn said.
He defined 2023 as the “wow year” where generative AI exploded into the market in a good way. And in 2024, you saw some experimentation from companies on ways to monetize and add value to their customers, Durn said.
Research also points to Durn’s assessment. The World Economic Forum (WEF) refers to 2025 as a year where companies prepare to disrupt how work gets done. “Leaders must lead from the front as they embed AI into operations and processes,” according to WEF.
At Adobe, a producer of products for digital content creation, leveraging generative AI for customers has three major opportunities: unleashing creativity, accelerating document productivity, and powering digital experiences, he said. “Each of those is a multibillion-dollar opportunity that we’re pursuing,” Durn said.
An example? Adobe Acrobat AI Assistant uses generative AI allowing users to interact with PDFs and other documents for editing, adding visuals and collaboration, Durn said. The early indicators of future success in AI investments lie in whether you’re seeing productivity benefits for customers, Durn said.
He points to users creating 16 billion pieces of content on Adobe Firefly to date, and 4 billion of that in the most recent quarter. For example, on Gatorade.com, PepsiCo is using Firefly, which is enhanced by generative AI, to allow customers to generate their own individualized water bottles through simple text prompts. Durn said the company will expand on the ROI for AI during its upcoming summit in March.
Agentic AI—powerful models that can operate autonomous digital agents capable of enhanced reasoning and decision-making—is said to proliferate this year. Some analysts predict the AI trend could send software stocks soaring in 2025.
“Agentic AI is just a natural evolution in the journey we’ve been on,” Durn said. The company plans to reveal in the coming months how it intends to incorporate the technology, he said.
As Adobe is based in California, Durn and I also discussed the recent wildfires.
“We’ve had a few employees that have been impacted, whether it’s directly or tangentially through an extension of their family,” he said.
Adobe Foundation is making a $1 million donation across the California Community Foundation: Wildfire Recovery Fund and the Entertainment Community Fund. “It’s tragic, and we wanted to do our part,” Durn said.
See you on Monday.
Sheryl Estrada
[email protected]
The following sections of CFO Daily were curated by Greg McKenna.
Leaderboard
Some notable moves this week:
Lisa Banks was appointed CFO of Abnormal Security, an AI-native human behavior security provider. As CFO, Banks will play a critical role in driving Abnormal's next phase of growth. Banks most recently served as CFO at SpotOn. Before that, she was SVP of finance at ServiceNow, Inc.
Thierry Piéton was appointed EVP and CFO of Medtronic (NYSE: MDT), a medical device maker, effective March 3. Piéton joins the company from French automaker Renault Group where he was most recently the CFO.
Duncan Minto was appointed CFO of Renault Group, an automobile manufacturer, effective March 1. Minto will replace Thierry Piéton, effective Feb. 28. Minto is currently CFO of Alpine, a position he has held since October 2023.
Ivica Krolo was appointed CFO of shoemaker Birkenstock (NYSE: BIRK), effective Feb. 1. He will succeed Erik Massmann, who will step down on Jan. 31. Krolo joins Birkenstock from EMH Partners, where he has served as partner and CFO since 2015.
Mark Weinswig is stepping down from his role of CFO at Ouster, Inc. (Nasdaq: OUST), a provider of software solutions, effective Jan. 31, to pursue a new career opportunity. Chen Geng, Ouster’s VP of strategic finance and treasurer, will serve as interim CFO. Geng joined Ouster in 2021.
Adarsh Parekh was appointed CFO of Sidus Space (Nasdaq: SIDU), a company specializing in space mission enablement, effective Jan. 27. Most recently, Parekh served as CFO of Terran Orbital Corporation.
Harish Shantharam was appointed CFO of ALX Oncology Holdings (Nasdaq: ALXO), a clinical-stage biopharmaceutical company, effective Jan. 21. He will replace interim CFO Shelly Pinto, who will remain the company’s SVP of finance and chief accounting officer.
William C. Regan was promoted to CFO of Mawson Infrastructure Group Inc. (Nasdaq: MIGI) a technology company, effective Jan. 17. Regan joined the company in 2024 as deputy CFO.
Big Deal
Small businesses appear poised for growth this year after a strong close to 2024, according to the Bank of America Institute’s monthly business checkpoint. According to BofA deposit data, profitability in the final quarter of Q4 hit a two-year high. Meanwhile, survey results from the National Federation of Independent Businesses found that respondents are enjoying easier access to credit, with more than a third of small firms saying that now is a good time to expand and boost their headcount.
Payroll growth remains strong across all revenue tiers, the report said. Overall hiring remained 20% above 2019 levels, including a 43% jump in services. Still, a caveat is that small businesses are finding it more difficult to fill positions; for the first time since November 2023, quality of labor has nearly replaced inflation as the biggest problem for firms.
Going deeper
Here are four Coins2Day weekend reads:
“Are famous short sellers going extinct? The exit of Hindenburg Research and Andrew Left shows the risky trade is shrinking,” by Leo Schwartz
“JPMorgan Chase workers grouse over measly bonuses, 2% pay bumps as bank reels in record $58.5 billion in profits,” by Luisa Beltran
“Private equity firms are snapping up slices of NFL teams for the first time,” by Robert Gray
“Commentary: World leaders at Davos need to tax millionaires like me. The fate of our planet and democracy depends on it,” by Chuck Collins
Overheard
“The USA is facing its biggest fiscal sustainability problem since the Civil War certainly and quite possibly in its entire history. The greatest danger threatening us is fearlessness itself.”
—Larry Summers, former U.S. Secretary of the Treasury, told German business daily Handelsblatt at the World Economic Forum in Davos, Switzerland, Coins2Day reported.
