It’s hard to think of a role in the business world which hasn’t been influenced by tech in some way. However, finance is one area where we’re seeing significant changes, particularly in how technology is impacting leadership roles – specifically, 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 revealed that 82% of CFOs intend to increase their 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, and advanced analytics tools enables finance directors to automate routine tasks, allowing them to focus more of their time on analysis and foresight. Some of the uses include cloud-based financial management systems that enable real-time data access, facilitating seamless collaboration among different departments. 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 more quickly to market changes and make more informed 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, enables businesses to automate repetitive, rule-based tasks. This can reduce errors and significantly reduce processing times. With this level of automation and a reduction in manual data entry, finance directors can focus on higher-value activities, such as 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 enable finance directors to 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 works and what doesn’t, helping to support better and 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 provides finance directors with warnings of emerging threats, enabling them to be more proactive in addressing these issues.
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 with other departments within the business. The use of cloud-based platforms alone makes sharing data in real-time much easier, and dashboards and visualisations of data enable the more effective communication of complex financial information to non-finance stakeholders.
Challenges in tech adoption
We have discussed some of the ways that technology is transforming finance departments for the better. However, it is not without its challenges. Digital transformation does not happen instantly, and many finance directors are facing hurdles such as legacy IT systems and data silos. There can also be skill gaps within their teams that require additional training. Finance directors need to foster a culture of continuous learning to stay current 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. Working closely with the IT and security teams is crucial to safeguarding sensitive information.
Financial leadership in the era of tech
The finance director of the future will be a hybrid of sorts. They are financial experts, technologists, and increasingly strategic leaders. They will utilise automation and AI to analyse past performance and forecast future outcomes.
Consequently, the skills required for the role are evolving, and finance directors will need, in addition to 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.
