It’s hard to think of a role in the business world which hasn’t been influenced by tech in some way. But finance is one area where we’re seeing huge changes, specifically in how tech is affecting leadership roles – that is, the finance director or the chief financial officer (CFO).
The growing reliance on tech is not just about speeding up established day-to-day processes, although that certainly plays a part. In fact, a Deloitte poll found that four out of five CFOs anticipated more automation in their operations. It goes beyond that, though, with the same poll suggesting that 76% of CFOs expect digital transformation to play a central role in achieving their companies’ strategies. This shift is driven by the need to navigate increasingly complex financial environments, the fact that so much data is now available, and the need to remain competitive and efficient.
To that end, investment in technology is going to increase. A study by Gartner showed that 82% of CFOs plan to increase technology spending. So what does this all mean in 2025? How exactly has finance changed in the tech era, and what impact is it having on collaboration, communication, and how finance leaders spend their time? That’s what we will look at in this article.
How finance has changed in the tech era
In the past, finance teams were generally seen as cost centres. They were there for bookkeeping, compliance, and producing financial statements. Digital transformation has changed this with the availability of data and insights, making the function more agile than ever.
The use of cloud computing, AI, machine learning, as well as advanced analytics tools means that finance directors can automate routine tasks and focus more of their time on analysis and foresight. Some of the uses include cloud-based financial management systems that allow for real-time data access, which helps different departments collaborate seamlessly. In addition, AI and machine learning are helping to identify patterns and anomalies that would be impossible to spot manually, which is enhancing fraud detection and risk management.
AI is at the centre of this transformation. According to PWC, 58% of the CFOs they surveyed are now investing in AI for better forecasting and planning. These tools integrate market data and internal financials to predict revenue trends and cash flow with far greater precision. With this knowledge, companies can respond faster to market changes and make better investment decisions.
The role of automation
The automation of repetitive tasks is central to how technology is changing the role of the CFO. Regular processes (accounts payable and receivable, invoicing, reconciliation, payroll) can now be automated with RPA software. RPA, which stands for robotic process automation, allows businesses to automate repetitive, rule-based tasks. This, in turn, can reduce errors and mean that processing times are greatly reduced. With this level of automation, and a reduction in manual data entry, finance directors can focus on higher-value activities like strategic planning and budgeting, providing timely and insightful analysis to the CEO and board. This also helps transform the CFO’s role to a true strategic advisor, moving far beyond the idea of the ‘financial gatekeeper’.
Putting data at the centre of the CFO role
We have discussed automation, which will be critical. Beyond that, data analytics is the other key area that will transform the finance director’s role. Advanced business intelligence platforms now mean that finance directors can combine financial data with operational and market information. This helps create a complete 360-degree view of the business, rather than just a series of siloes.
With a more complete view, decision-making and risk management will become easier, with finance directors using scenario modelling tools to determine the impact of various strategic choices under different market conditions. They can run these scenarios and gain insights into what will work and what won’t, helping support better, more resilient planning decisions.
Changes to compliance and risk management
Technology also plays a central role in compliance. As regulations become increasingly complex, automated compliance monitoring tools can track transactions in real time. This means finance directors can see potential issues ahead of time, while also generating audit trails that simplify regulatory reporting.
Where AI meets risk management is in monitoring financial exposures, market volatility, and credit risk. As with compliance, this early data gives finance directors warnings of threats that may just be emerging, allowing them to be more proactive.
Boosting collaboration and communication between departments
It’s all too easy for departments to become siloed, not talk to each other, and not share data. This doesn’t lead to good decision-making. The introduction of technology has the potential to help the finance department reach out and foster better collaboration and communication between themselves and other departments in the business. Just the use of cloud-based platforms means that sharing data in real-time is much easier, and dashboards and visualisations of data mean that complex financial information can be more easily communicated to non-finance stakeholders.
Challenges in tech adoption
We have discussed some of the ways that technology is transforming finance departments for the better. But of course, it is not without challenges. Digital transformation does not happen in an instant, and many finance directors are facing hurdles like legacy IT systems and data silos. There can also be skill gaps within their teams that require additional training. Finance directors need to encourage a culture of continuous learning to keep pace with the latest tools and methodologies.
Security is also another challenge. As financial data becomes more digitised and accessible – and shareable around the business – it also becomes a target for cyber threats. So, working closely with the IT and security teams is critical to safeguarding sensitive information.
Financial leadership in the era of tech
The finance director of the future is going to be something of a hybrid. They are financial expert, technologist, and increasingly a strategic leader. They will use automation and AI to report on past performance and predict future outcomes.
Consequently, the skills required for the role are changing, and finance directors will need, alongside financial expertise, the ability to manage digital transformation projects and communicate insights effectively to diverse audiences.
Today, technology is transforming the finance director’s role from a traditional numbers-driven function into something entirely new – a flexible, strategic partner. By adopting digital tools, automation, and data analytics, finance directors are discovering innovative ways to help their companies stay competitive.
