In this episode of The EBITDA Gap, host Afrozy Ara talks with Todd Newberry, CFO and COO of the Equipment Finance Division at Prosperity Bank, to understand what AI adoption looks like in a highly regulated industry like banking. Todd talks about his unique perspective as a CPA and as an operations leader to share how bridging the gap between numbers and people drive leadership. He indicates the importance of targeting tech improvements that simplify operations instead of adding unnecessary complications. The conversation illustrates how Prosperity Bank applies AI and machine learning in credit decisioning. Rather than replacing human judgment, AI handles the straightforward approvals and rejections upfront. This frees up human experts to focus their energy right where context and judgment are the most important: improving job satisfaction, boosting efficiency, and pushing profitability forward. Todd also sees technology as a way to eliminate repetitive work, address operational backlogs, and give employees more time to focus on higher-value work. The episode also explores the risks of AI adoption, particularly cybersecurity and vendor selection. Todd emphasizes the importance of thoroughly vetting third-party providers and warns against rushing into large, expensive contracts before understanding the technology and its risks. He advocates for starting small, testing AI in a controlled environment, learning from mistakes, and expanding only after achieving measurable success. The conversation also emphasizes Agentic AI, customized technology solutions, and the changing relationship between SaaS, consulting, and AI providers. Todd argues that organizations should prioritize practical solutions tailored to their specific needs rather than being distracted by expensive "shiny objects." Finally, Todd discusses how the role of the CFO is evolving. Rather than simply serving as the financial gatekeeper who says no, today's CFO has an opportunity to become a transformational leader by helping identify initiatives that can make an organization faster, more efficient, and more profitable while still protecting the business. His advice is simple: start small, prove the value, build support, and grow from there. Key Takeaways: Why AI adoption in highly regulated industries like banking requires a cautious, controlled approach.How AI can enhance human judgment rather than replace it in credit decisioning.Why the goal of AI should be improving employee effectiveness and customer outcomes, not simply eliminating jobs.How AI can help finance teams address operational backlogs and uncover additional revenue opportunities.Why cybersecurity and vendor due diligence are critical when implementing AI.Why organizations should start with one small, meaningful use case before attempting an enterprise-wide transformation.How boutique, flexible technology providers can offer more targeted solutions than large, one-size-fits-all platforms.Why CFOs must evolve from financial gatekeepers into transformational leaders who help drive innovation.How companies can balance the need to innovate with the risks of moving too quickly.Why AI vendors should focus less on showcasing technology and more on clearly explaining the business value it delivers. Guest: Todd Newberry CFO & COO, Equipment Finance Division: Prosperity Bank Golden Nuggets: "Pick one thing. Just one… Small thing that really needs to be accomplished, and do it." "Start small. Have a success or two, and then grow as you go." Connect with Todd Newberry: Prosperity BankLinkedIn: https://www.linkedin.com/in/todd-newberry-cpa-b56b00b/ Listen Now & Subscribe: Available on Spotify, Apple Podcasts, YouTube, and wherever you get your podcasts. Listen and subscribe to The EBITDA Gap wherever you get your podcasts. The EBITDA Gap is the podcast for finance leaders who want to turn AI adoption, technology, and operational improvements into measurable business results, closing the gap between investment and the EBITDA that actually matters.
