As advances in technologies such as AI (artificial intelligence) continue apace, every leader finds themselves planning for digital transformation in 2025. Now is the time to seize opportunities, adapt to market changes and prepare for an AI-driven future.
CFOs are also making plans for digital transformation in 2025, but from a slightly different angle. For finance leaders, all digital transformation initiatives need to be underpinned by solid business logic. Before the business signs off on a new digital strategy, CFOs will need to conduct a thorough investigation of potential ROI and cost-risk benefit analysis.
the main trends driving digital transformation in 2025
o, what are the big digital trends coming this way?
AI is still the major narrative in digital transformation. While this technology is exciting, many businesses have yet to find ways to turn that potential into a meaningful business advantage.
According to analysts at Gartner, business leaders will need to spend 2025 looking at AI, plus other promising technologies such as:
- Next-level cryptography: Advances in cryptography may give companies a much-needed advantage in the fight against cybercrime.
- Improved IoT (Internet of Things) technology: Trackers and monitoring devices are cheaper and more versatile than ever. This can help some businesses find new efficiencies in logistics and process management.
- A new generation of user interfaces: Companies such as Apple and Meta are pushing to make virtual reality and augmented reality a part of everyday office life. Could this be a driver for business growth?
Some of these technologies will have a direct impact on the finance department, while others might transform the organization’s entire long-term strategy. Either way, CFOs will play a crucial role in decisions about how to pursue the next wave of digital transformation.
10 digital transformation focus areas for 2025
Finance leaders will need to stay agile in the coming year. You’ll have to ask the right questions, have a clear strategic vision, and look at ways to balance risk management with digital transformation. Here are some of the biggest priorities in the year ahead.
1. review the lessons of previous transformation projects
Before looking forward, it’s important to look back on previous digital transformation projects. This is especially important if your organization has made major infrastructure investments in recent years. What did you learn from those projects? How can you apply those lessons to digital transformation in 2025?
Action items:
- Try to identify the root causes of previous issues in digital transformations, especially in projects that failed to deliver the expected ROI.
- Identify the strengths and assets that might help your digital transformation success. A flexible workforce or a stable IT stack can be an excellent basis for future success.
- Review the change management process to ensure implementations run smoothly.
2. lean into data-driven leadership
Organizations are becoming more automated, which means leaders need to start making more decisions based on data. For CFOs, this creates a twofold responsibility. First, you’ll need to review your own processes to ensure you have the right dashboards and insights to guide your decisions. You will also be responsible for providing accurate, up-to-date financial information to the rest of the leadership team.
Action items:
- Coordinate with the CIO/CISO to develop a new data strategy. New technology can mean new data sources — this data will need to be cleaned, labeled and integrated with other data sources.
- Work with the leadership team to discuss their data analytics requirements.
- Look at new ways to use data insights in your own daily processes.
3. work toward on-demand financial reporting
Financial reports are becoming more frequent, and it seems like the ultimate goal is on-demand reporting. This is a major organizational challenge, as it requires centralizing all of your financial data. However, businesses will have an advantage if they can access fast, accurate financial information. Many CFOs are looking for new ways to make this happen.
Action items:
- Work with IT and software vendors to max out your current capabilities. Your existing finance software might have powerful reporting options that you’re not using, possibly because it’s not configured correctly.
- Speak to third parties (such as banks and payment processors) to learn more about their data integration services.
- Engage with data experts to ensure your reports are accurate, reliable and secure.
4. look for ways to implement AI
Artificial intelligence won’t magically transform your business by itself. Instead, the leadership team will need to look at ways to use AI-based technologies as part of the long-term strategy. In the short term, this might mean cost reduction through automation. Longer term, AI tools and products might help your business break into new markets.
Action items:
- Work with other leaders to develop an AI policy framework. This should cover essential issues such as cybersecurity, user training and change management for new AI-driven processes.
- Establish an AI task force to look for opportunities to use AI within the organization.
- Conduct a thorough risk analysis before allowing AI to handle any critical functions, especially those related to handling sensitive data or meeting regulatory requirements.
5. pursue a strategy of digital enablement
New technology doesn’t have to result in large-scale transformation projects. It’s also important to focus on digital enablement — working with your team to help them realize the benefits of new tools. Digital enablement can involve providing training, updating processes or looking at new ways to use existing tools.
Action items:
- Talk to leaders about their main pain points. Pay close attention to cumbersome processes and skills gaps.
- Assign digital enablement experts to look at process improvements that can help deliver ROI from your tech infrastructure.
- Speak to your current vendors about upgrades and add-ons that might improve your existing tech stack.
6. seek out new efficiencies
Digital transformation can bring down operational costs — if implemented correctly. Cost reduction is one of the CFO’s main responsibilities, so it should be one of the main goals of your next digital transformation project. However, it’s important to ensure new technology, such as automation tools, doesn’t negatively impact business processes.
Action items:
- Identify the main pain points that drive costs. Common culprits include wasteful logistics processes, inaccurate resource planning and overly complicated business processes.
- Meet with process owners to discuss potential improvements. For example, investing in IoT technology might allow for more efficient management of physical assets, such as stock and equipment.
- Set clear ROI targets before investing in a digital solution. Remember to account for associated costs, such as retraining team members.
7. be a leader in cybersecurity
Data breaches cost an average of $4.88m per incident in 2024 — a 10 percent increase on the previous year. Cybersecurity is more important than ever, and the CFO can lead the rest of the organization in implementing best practices. Keeping data safe is a mission-critical priority, especially as processes become more automated.
Action items:
- Add cybersecurity to the agenda in every meeting about IT investment and digital transformation.
- Look at opportunities to use next-gen encryption and AI-powered security tools to help secure your data.
- Lead by example. Ensure the finance team follows all best practices and security protocols.
8. automate finance processes
Most finance departments still use manual processes, especially in sensitive areas such as internal controls. While it’s essential to manage risk and stay compliant at all times, advances in AI and machine learning might allow your team to automate key processes.
Action items:
- Review all processes and look for automation opportunities.
- Run limited pilot schemes to ensure automation is functioning as inspected.
- Conduct detailed audits on any newly automated process.
9. expand the role of the finance team
The CFO’s role continues to evolve, with finance leaders playing a larger role in all aspects of strategy. The role of the finance team is also changing, with a broader range of core capabilities that can serve the business in entirely new ways. Technology can be a great enabler here, allowing your finance team to become an even more central part of the business.
Action items:
- Work to make finance a data-first department. This requires a technology strategy that improves your capacity for capturing data, and that also produces high-quality analytics.
- When recruiting, focus on building an adaptable team that can respond to the organization’s changing needs.
- Invest in technology that allows the finance team to respond to changing expectations.
10. upskill your team
Digital transformation isn’t just about technology — it’s also about people. Your team will need to learn new skills to thrive in an AI-powered world. This means providing support, offering resources and fostering a culture of continuous learning.
Action items:
- Empower people to manage their own careers by requesting the training that will help them achieve their career goals.
- Use a variety of channels to deliver training materials. Short videos and AI-powered chatbots can be engaging ways of learning.
- Fill skills gaps on your team by engaging with consultants and short-term hires.
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