For years, industry experts have been making predictions about what the finance function would look like in 2025. Many of the reports, like this one from Deloitte, anticipated sweeping changes such as real-time reporting, the elimination of manual processes, the wide adoption of AI and machine learning, and a complete transformation of how the function serves its business users.
While many revolutionary changes have been made, especially in the automated payment space, most finance organizations aren’t quite where they want to be at this point. Going into 2025, the function’s leaders are still laying the groundwork for the “future of finance,” focusing on technology, workforce planning, and macroeconomic realities that impact businesses.
AI certainly isn’t a new topic in the finance space; it’s a technology that has touted major successes in some respects while leaving a wake of disappointment in others. Right now, the benefits of AI are clear for simpler data processing tasks, but the more complex priorities aren’t getting the returns that were promised. So, is AI a worthwhile investment? It’s up to finance leaders to prove that years of work and major capital injections weren’t all for naught.
In an AvidXChange survey, 68% of finance leaders said that AI provides a “significant” ROI, but 71% of respondents admitted they weren’t confident that ROI was being accurately measured. Investing in AI is a long road; it can take many years to see the return, and many of the benefits are considered “soft” savings. How should finance departments quantify improved employee satisfaction or advanced service models? It’s uncharted territory, but CFOs have to quantify returns, even if it’s not an easy task.
AI and automation are essential for enabling finance teams to automate tasks and improve decision-making. These technologies enhance organizational efficiency and adaptability, allowing finance teams to navigate future challenges effectively.
The finance function is undergoing a significant transformation in 2025, driven by technological advancements, changing business models, and increasing economic uncertainties. Finance leaders are no longer just number crunchers; they are strategic partners in driving business growth. The modern finance function is becoming more agile, responsive, and data-driven, focusing on providing real-time financial insights that enable business leaders to make informed decisions swiftly.
Operational efficiency is at the forefront of this evolution. By leveraging advanced technologies and data analytics, finance teams can streamline processes, reduce costs, and enhance accuracy. This shift not only improves the bottom line but also positions the finance function as a critical enabler of business strategy. As economic uncertainties continue to loom, the ability to adapt and respond quickly to changing conditions is more important than ever.
As finance roles require increasing levels of digital literacy, CFOs haven’t quite figured out how to close the skills gap. Many finance employees that started their careers within the last decade are used to using Microsoft Excel for everything, but beyond that, their ability to use and understand next-gen tools is limited. The finance team needs to adapt to technological advancements like Generative AI and address talent gaps within the finance function. Investing in employee education is only one piece of the puzzle; getting them on board with digital transformation is another beast entirely.
Financial analysts can no longer get away with regurgitating month-end numbers to their business partners. Now, they need to be able to provide predictive insights and help make business decisions. It’s a big shift, but one that will bring about major benefits if it’s done right. However, closing the skills gap isn’t just about skills, believe it or not. It’s also about organizational structure.
Right now, when businesses hire data experts or software engineers, those resources often go to functions like sales, marketing, or even IT. Finance isn’t equipped to support new hires that are so digitally advanced, because most finance leaders aren’t digitally advanced. Now, the function as a whole, has to look at the overall structure; where do digital gurus fit in? Who do they report to? How are they incorporated into the function instead of simply being used as technical consultants?
Strategic leadership is the cornerstone of modern finance. Finance leaders must possess a deep understanding of their business, its operations, and its financial performance to provide the strategic guidance necessary for growth. This involves more than just managing numbers; it requires a holistic view of the organization and the ability to communicate effectively with business leaders, stakeholders, and finance teams.
Effective strategic leadership in finance means developing and implementing financial strategies that align with the overall business strategy. It involves managing risk, optimizing financial performance, and ensuring that all financial activities support the organization’s long-term goals. By fostering collaboration and alignment across the organization, finance leaders can drive operational efficiency and support sustainable growth.
Gone are the days when cybersecurity is solely an IT concern. According to the International Monetary Fund, cyberattacks that target the financial sector account for nearly one-fifth of all cyberattacks. This is a major red flag for CFOs, who not only have the fiduciary responsibility to protect their company’s assets but also have a target on their backs for devastating cyberattacks.
Because so many cybercrimes start with human error, CFOs must ensure that their team members are well-versed on what to look out for. If one person in the function falls victim to a phishing email or related attack, it could jeopardize the entire company. There’s a lot at stake, but considering cybersecurity is fairly new for finance leaders, effective strategic leadership involves developing practical solutions to navigate the complexities of the evolving financial landscape.
Employees may pose vulnerabilities for these types of attacks, but so do subpar financial systems. If CFOs are still working with outdated ERPs or poorly secured payment portals, they aren’t doing their jobs in a way that makes sense in today’s environment. It takes a lot of time and money to bolster cybersecurity defenses, but it’s non-negotiable. Investing in additional payment security platforms can reduce the risk of cyber incidents and human error.
In today’s fast-paced business environment, revamping finance operations is essential. Finance teams must be agile, responsive, and data-driven to keep up with the demands of modern business. This means streamlining, automating, and optimizing finance operations to improve efficiency, reduce costs, and enhance accuracy.
Implementing new technologies, such as enterprise resource planning (ERP) systems, is a key part of this transformation. These systems enable finance teams to leverage data analytics and provide real-time financial insights, which are crucial for informed decision-making. Additionally, improving processes like accounts payable and accounts receivable can significantly enhance operational efficiency and reduce risks. By focusing on these areas, finance teams can better support the overall business strategy and drive long-term success.
One of the big selling points of AI and automation is real-time monthly close cycles. Saying goodbye to multiple weeks of the month-end close, backwards-looking data, and clunky reporting mechanisms has been a long-time dream among CFOs. Organizations are now adopting continuous, real-time financial data to enhance their financial planning and forecasting capabilities, enabling finance leaders to react swiftly to market changes. While it sounded promising, the results are lagging.
An earlier Deloitte report about finance in 2025 predicted that finance would go real-time, producing actuals and forecasts on-demand, and essentially get rid of the close cycle. This year, Deloitte conducted a follow-up study on their initial report. The financial cycle predictions were given a “lagging” rating by the global consulting firm. “The close, as we know it, isn’t disappearing anytime soon.”
But if CFOs have been promising big results in terms of real-time reporting, they aren’t going to stop pursuing that target. They want to be able to look at their phone, get the information they need to make decisions in a matter of seconds, and move to the next priority.
Enhancing financial planning and analysis (FP&A) is critical in today’s business environment. Finance teams must provide real-time financial insights and support business leaders in making informed decisions. This involves developing and implementing comprehensive financial plans, managing budgets, and analyzing financial performance.
Leveraging data analytics and other advanced technologies is essential for improving FP&A. These tools enable finance teams to conduct scenario planning, manage risks, and develop actionable insights and recommendations. By providing business leaders with the information they need to make strategic decisions, finance teams play a crucial role in driving the organization’s success. Enhancing FP&A not only supports better decision-making but also helps finance teams anticipate and respond to economic uncertainties, ensuring the organization remains resilient and competitive.
In an August poll of 144 U.S.-based CFOs, 49% of leaders said they expected business conditions to improve over the next 12 months. This is a slight increase from the 44% of CFOs who shared this expectation when asked in Q2. Despite a boost in the CFO Confidence Index, which is currently sitting at 6.5 on a 10-point scale, many CFOs are concerned about the impact of the presidential election and a potential recession.
Sure, September brought good news in terms of interest rate cuts, but that doesn’t seem to be enough to convince finance leaders that the global economy is in a state of growth. In total, 55% of those surveyed expect a recession in the near term, with 8% expecting it to be a severe recession.
On a broader scale, finance leaders around the world are facing ever-changing dynamics, such as increasing tensions in the Middle East, supply chain disruptions, and complex outsourcing dynamics. CFOs are prioritizing risk management to enhance financial flexibility and resilience amidst these economic uncertainties. With so much up in the air, it’s hard to know how the cards will fall, but that’s always been the case for those in finance. This isn’t a new challenge; it’s simply one that never looks the same as it did yesterday.
2025 is a benchmark year for finance leaders; it’s a time when they’ll be forced to reckon with targets that weren’t achieved or promises that weren’t kept, but also an opportunity to celebrate transformational wins within the organization. Like any time of reflection, it’ll also be a time to plan for the next 5, 10, and even 15 years.
What does finance look like in 2030? Will real-time reporting be the norm? Will AI have solidified its role in finance organizations? How will finance professionals evolve from now until then? It’s really up to the CFOs, their teams, and their business partners to decide, but that journey too will be filled with challenges.
For now, finance leaders should aim to finish 2025 strong. They need to focus on reaching as many organizational goals as possible, incorporating employees into the decision-making process, and being honest with ROI measurements. Enhancing their finance functions to adapt to future challenges, such as automation and strategic management, will be crucial. It’s no easy task but creating the future of finance never has been.
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