Nasdaq CFO Sarah Youngwood’s AI Master Plan: Revolutionizing Finance from the Inside Out
(SeaPRwire) – By: Christian Pierce
Sarah Youngwood, the EVP and CFO of Nasdaq, is shaking up the finance world with her innovative approach to artificial intelligence. Forget about algorithms; Youngwood has introduced a ranking system for AI proficiency that’s as unique as it is effective. Inside Nasdaq’s finance function, employees now earn belts for their AI skills, much like martial artists do. White belts signify foundational knowledge, and as they progress, they gain hands-on experience and the ability to teach others. Youngwood’s goal? To have 20% of the team reach black belt status.
This belt system is just one piece of Youngwood’s vision for AI as an embedded capability, not a standalone initiative. She believes AI should be the driving force behind everything Nasdaq does, from market infrastructure to internal finance operations and workforce culture. “If we’re Nasdaq, it’s our role to lead the charge,” she says. “To show what AI can do and how we can become an AI-first finance function.”
Youngwood’s background in finance, with stints at JPMorgan Chase and UBS Group, has given her a firm belief in the importance of proving the return on technology investment. “Finance is in charge of a lot of corporate data,” she says, “and AI is all about the data.” This mindset has led her to apply a financial lens to AI adoption at Nasdaq, measuring its impact in three key stages: employee engagement, velocity, and financial impact.
First, Nasdaq looks at whether employees are completing AI training and actually using the tools. Then, they assess whether AI is improving throughput, accelerating workflows, or enabling faster development cycles. Finally, they measure the financial impact of these gains in revenue growth, cost efficiency, or productivity. This disciplined approach extends to how Nasdaq allocates capital, categorizing investments into “horizon zero” (foundational needs like cybersecurity), short-term return initiatives, medium-term bets, and longer-term R&D. Youngwood uses the same framework to evaluate AI spending, treating it as a lens applied across the whole portfolio.
Building this foundation has taken years of groundwork. Over the past two years, Nasdaq has focused on standardizing data definitions, centralizing information, and building dashboards capable of supporting more advanced AI applications. “You need your data in tip-top shape,” Youngwood says. “Once you have that, you’re prepared for generative AI.” Investments made a decade ago in cloud infrastructure and early AI capabilities now underpin Nasdaq’s positioning in generative AI. “We couldn’t see the whole map at the time,” Youngwood notes, “but those small investments gave us the foundation to be very well positioned today.”
Youngwood is also using AI across her function for everything from administrative tasks to forecasting and financial planning. More advanced initiatives are integrating AI into core systems and workflows, and she’s made sure her top technology leaders sit at the same table as the finance team, signaling the tight link between finance and tech. Externally, Nasdaq is putting AI everywhere, from client processes to its own operations. One example is Nasdaq Verafin’s Agentic AI Workforce platform, launched last year and now used by 650 financial institutions. Youngwood points to ease of implementation as a key factor in its adoption.
The broader context of AI’s role in the financial industry is also important. As debate grows over whether AI will disrupt traditional software business models, Nasdaq CEO Adena Friedman has argued that it will accelerate software innovation rather than replace it. Youngwood’s job is to make the financial case for this bet, determining how aggressively the company invests and shaping the investor narrative around the results.
As for her own “belt” journey, Youngwood is right there with her team. She’s on track to reach yellow belt next month and plans to progress to green soon. This hands-on approach shows her commitment to leading by example and ensuring that Nasdaq’s AI strategy is truly embedded throughout the organization.
In conclusion, Sarah Youngwood’s AI playbook at Nasdaq is a game-changer. By focusing on data, measurement, and integration, she’s positioning Nasdaq as a leader in the AI-driven finance revolution. Her approach is not only innovative but also practical, with a clear focus on delivering results. As other companies look to embrace AI, they would do well to take a page from Youngwood’s book and consider how they can embed this powerful technology into their own operations.
Author bio: Christian Pierce, a chief financial columnist and markets commentator.