The CFO Agenda 2025: Focus on efficiency, innovation and sustainability

The finance function is undergoing profound transformation. In an era of global uncertainty, rising regulatory demands and rapid technological advancements, CFOs and their teams are being challenged to redefine their roles. However, these challenges also create opportunities to enhance efficiency, make data-driven decisions and achieve sustainable growth.

This blog post is based on the results of a BARC research survey conducted at the end of 2024. The study explores the key factors shaping finance today and in the near future. It examines how CFOs are responding to challenges like rising costs, regulatory compliance and workforce pressures while leveraging technologies such as AI and analytics. This blog distills the findings and provides actionable recommendations to help you prepare for the future.

 

Rising costs and efficiency: Top priorities for CFOs

Rising costs are among the biggest challenges CFOs face today, driven by factors such as global competition, energy prices and high-interest investments in digital transformation. For many organizations, maintaining current performance while driving future growth is a delicate balance.

Two investment priorities stand out: AI and ESG (environmental, social and governance). AI offers potential for automating processes and optimizing resource use, while ESG compliance is becoming a regulatory necessity for thousands of companies, particularly across Europe. European CFOs are under pressure to address these mandates quickly, especially in mid-sized and larger organizations.

Automation, regulation and workforce challenges

Only 1 percent of surveyed companies report no significant challenges in their finance functions. Common issues include inefficiencies caused by manual processes, compliance with regulatory requirements, and talent shortages. These hurdles are especially pronounced in organizations relying heavily on spreadsheets like Excel, which limit data consistency and slow decision-making.

Attracting and retaining talent is another critical concern. Finance professionals increasingly need expertise in data analytics, AI and regulatory compliance. Organizations must address this gap by offering competitive opportunities and emphasizing sustainability, a growing factor in employee engagement.

 

The role of software and data management in finance transformation

Modernizing software and improving data management are central to finance transformation. Half of the companies surveyed plan to reduce reliance on spreadsheets, replacing them with advanced tools that enable automation and consistent data flows. Many are also investing in new or upgraded software to standardize applications across their enterprises.

However, technology alone is not enough. A solid data foundation is essential for accurate, real-time insights, particularly in areas like ESG reporting and predictive planning. Companies must integrate performance management processes – linking planning, financial consolidation and reporting – to fully realize the benefits of digitalization.

 

Investment priorities: ESG, risk management and predictive planning

Short-term investments focus on pressing challenges like ESG reporting, data management and faster data delivery for decision-making. Long-term plans include governance, risk management and financial planning. Risk management is gaining prominence due to new regulations and the increasing complexity of cyber and economic risks.

Predictive planning is also emerging as a priority. AI-powered tools enable scenario modeling and forecasting, helping organizations navigate uncertainty and align financial strategies with broader business goals.

Recommendations for the finance function of the future

1. Actively drive finance digitalization

CFOs must lead the charge in embracing modern software and technologies. Investing in analytics, AI and cloud solutions can transform the finance function by enhancing automation, improving decision-making and enabling strategic foresight. At the same time, implementing a centralized data strategy will help eliminate silos and ensure consistent, actionable insights.

AI in particular holds tremendous promise. Start small, with well-defined pilot projects, to explore its potential for predictive planning, risk assessment and operational efficiency. As confidence in AI grows, scale its application to achieve enterprise-wide impact.

 

2. Expand capabilities and empower teams

The finance function of tomorrow demands new skill sets. Expertise in data management, AI and regulatory compliance will be as important as traditional financial acumen. Companies must prioritize upskilling their teams while fostering a culture of continuous learning and innovation.

Additionally, talent retention is critical. To attract the best professionals, organizations must offer compelling career opportunities, competitive compensation and a strong commitment to sustainability – an increasingly important factor for today’s workforce.

 

3. Align technology, processes and organization

While software and technology are essential enablers of efficiency, they cannot operate in isolation. Finance excellence requires a holistic approach, with equal emphasis on optimizing processes, methodologies and organizational structures. Technology should support – not replace – well-defined processes and informed decision-making frameworks.

Avoid the trap of short-term fixes. Instead, adopt integrated solutions that align technology with your broader business strategy, ensuring sustainable improvements and long-term success.

 

Conclusion: Turning challenges into opportunities

The CFO Agenda 2025 offers a roadmap for navigating the challenges of today’s finance landscape while preparing for tomorrow’s opportunities. Rising costs, regulatory demands and workforce shortages may seem daunting, but they also present a chance to rethink how finance functions operate.

By investing in the right technologies, building a solid data foundation and empowering your teams, you can transform your finance function into a hub of efficiency, innovation and sustainability. The time to act is now – embrace change and position your organization for long-term success.

Are you ready to take your finance function to the next level? Download the full BARC research survey and learn more about the key factors shaping finance today and in the near future.

 

Read the report