Trust but Verify: Todd McElhatton on AI, Finance, and Systems of Record

In this episode of The Margin, Andrew Dailey speaks with Todd McElhatton, Chief Financial and Operating Officer at Zuora, about how AI is reshaping software business models, finance operations, and the economics of SaaS. Todd explains why AI-driven usage models are putting pressure on traditional seat-based pricing, why “systems of record” require precision rather than probabilistic outcomes, and how companies are navigating the growing tension between AI innovation and profitability. Drawing on his experience at Zuora, SAP, Oracle, and VMware, Todd also shares candid insights into Zuora’s transition from public to private ownership, the operational realities of AI inside finance teams, and why speed may become the ultimate competitive advantage in enterprise software.What You’ll Learn in This Episode:Why AI and usage-based pricing are pressuring traditional SaaS business modelsHow finance teams are using AI while managing risk, accuracy, and auditabilityWhy systems of record still require deterministic outcomes instead of probabilistic AIWhat Zuora learned from transitioning from public to private ownershipHow AI-driven speed and operational efficiency could reshape software competition