AI Workslop & the Rise of Fractional CFOs
AI adoption is accelerating across organizations, while finance leadership models are evolving to keep pace with constant change. Together, these shifts are reshaping how businesses think about productivity, strategy, and the role of financial expertise.
In this edition, we examine new data showing that AI productivity gains don’t always translate into clear ROI, as rework and low-quality output offset time savings. We also explore the growing demand for fractional CFOs and how flexible, goal-driven financial leadership is helping businesses move beyond compliance and toward more strategic decision-making.
The Hidden Cost of AI productivity
As CEOs continue to prioritize AI initiatives, 2026 is shaping up to be a pivotal year for its adoption. According to Boston Consulting Group’s January 2026 AI Radar survey, half of CEOs believe their job security depends on “getting AI right,” underscoring how central these tools have become to corporate strategy.
Despite the urgency, research offers mixed conclusions on AI’s return on investment. A December 2025 EY pulse survey of 500 business leaders found that 96% of organizations reported productivity gains from AI, with 57% calling those gains significant. However, a fall 2025 PwC survey of 4,454 global CEOs revealed a more cautious outlook, with more than half saying AI has not yet reduced costs or increased revenue.
Some studies point to measurable time savings. A 2025 London School of Economics survey found that AI use saves employees an average of 7.5 hours per week, while research from MIT Sloan and Stanford University showed accountants using AI could reduce the month-end close by 7.5 days. Still, time saved does not always translate into net productivity gains.
A growing concern is “workslop,” defined as low-quality AI-generated output that requires correction. A Workday survey found that while 85% of employees reported saving one to seven hours per week using AI, 37% of that time was spent correcting or rewriting AI output. This rework equates to roughly 1.5 weeks per year lost.
Similar findings emerged from a Stanford University and BetterUp Labs survey, which reported that 40% of U.S. employees received workslop from a coworker in the prior month. Respondents estimated that 15% of the work they review qualifies as workslop and that each instance requires about two hours to address.
Experts note that strong AI governance and leadership guidance can help reduce rework. Workday recommends that organizations evaluate the “net value” of AI productivity by factoring in the time spent correcting output, rather than focusing solely on gross time savings. Even so, Workday’s findings suggest net gains may be limited, with only 14% of employees consistently achieving net-positive outcomes from AI use.
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Why Fractional CFOs are gaining ground with SMBs
As the pace of business change accelerates, companies increasingly need more strategic financial leadership and insight, according to Jarrod Randall, CPA and senior enterprise partner consultant at Xero. For many small and midsize businesses (SMBs), hiring a fractional CFO has become a practical way to access that level of guidance.
Fractional CFOs can take ownership of accounting and finance while also helping businesses map out future goals that don’t always appear in financial statements.
“Tell your fractional CFO about your goals that aren’t in a financial statement,” he advised SMB leaders. “‘We want to hand this business down to the family, or we want to exit,’ or whatever [the goal is] going to be, this is where that fractional CFO can say, ‘Oh, great, I can help you with that.’”
– Jarrod Randall
A Shift Beyond Tax-Only Support
The growing popularity of fractional CFOs reflects broader changes in how businesses and finance professionals approach work. Demand for interim finance talent has surged in recent years, with interest tripling compared to 2020 levels. For many SMBs, the decision to bring on a fractional CFO comes when they want to move beyond compliance-focused support and start asking bigger questions about profitability and direction.
Fractional CFOs are brought in to create impact and deliver value, but that requires clarity around where the business has been and where leadership wants it to go. Often, these conversations begin with an existing accountant, as owners realize they need more strategic guidance.
Benefits for Both Businesses and CFOs
From the CFO’s perspective, fractional work allows finance leaders to focus deeply on specific goals or problems without being weighed down by competing responsibilities. This focus can enable faster and more effective outcomes for clients.
Technology has also made fractional CFO work more scalable. Advances in AI, automation, and cloud-based accounting software allow finance leaders to serve more clients without needing to be physically present or tied to legacy systems. These tools free up time for higher-value advisory work, shifting attention away from spreadsheets and toward strategic insight.
Technology, AI, and the CFO’s Role
While new technologies enhance efficiency, Randall stressed that finance professionals must stay current on how these tools affect reporting and decision-making. AI-generated data still requires professional oversight to verify accuracy and provide context; tasks that can be challenging for small business owners without a financial background.
Rather than adopting new technologies blindly, Randall encouraged finance leaders to take a forward-looking, hands-on approach. Understanding and responsibly applying tools like AI is essential, as fractional CFOs are often the ones positioned to help clients interpret and validate insights, ensuring technology supports sound financial decisions rather than replacing professional judgment.
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