New insights and top key FP&A trends for 2025
As finance leaders look ahead to the end of this year and the start of next, it’s clear that the future is rife with uncertainty. Accelerated changes driven by technology, geopolitical shifts, and economic instability are ongoing, meaning organizations must be more agile than ever before.
Recent research from Unit4 and analysts BPM Partners provides key insights on how finance leaders can best position their organizations to help mitigate risk and uncertainty while seizing new opportunities, such as those for growth or expansion.
According to the whitepaper, 99% of companies with a business performance management (BPM) system depend on it to manage uncertainty, and 71% consider it essential.
These findings underscore the critical role that Financial Planning and Analysis (FP&A) plays as organizations attempt to respond quickly to drastic changes in business conditions.
In the future, companies will need to adopt more advanced tools and strategies to maintain agility in their financial operations. Those relying on legacy systems and/or processes could be left behind.
Here are some of the key takeaways:
Trending capabilities: The impact of AI on finance
Artificial Intelligence (AI) has emerged as a game changer for supporting data quality, forecasting accuracy, process automation, and identifying key trends. The survey found that one-third of finance leaders either already use AI or plan to do so, with AI adoption in finance expected to grow rapidly over the next few years.
For those leading the charge, AI has proven particularly effective at improving decision support and uncovering insights that traditional tools may miss. As organizations embrace AI for financial processes, early adopters are seeing gains in forecast accuracy, process efficiency, decision support, and time savings.
Despite this momentum, 45% of finance leaders remain hesitant about AI due to concerns about immaturity and the value of current solutions. However, as resistance fades, AI is likely to become an indispensable tool for finance teams across industries in 2025 and beyond.
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What’s needed for finance transformation?
To thrive amid ongoing changes in 2025, finance teams must continue to transform their operations. This transformation often includes integrating financial, strategic, and operational planning to streamline processes and improve organizational efficiency.
The ultimate goal is to create a unified system with a single source of data truth that shortens cycle times and supports more agile decision-making. A critical factor in this transformation is the integration of FP&A tools with transactional source systems such as ERP, CRM, and HR platforms.
This allows finance teams to leverage both financial and operational data for more accurate forecasting and performance measurement from one single system rather than storing different versions in multiple locations.
Integrating FP&A with ERP systems enables finance leaders to move beyond siloed data and gain a comprehensive, 24/7 view of business performance. Organizations can align corporate strategy with actual resources and data, enabling better decision-making across departments.
Extended planning and analysis drive cross-functional collaboration
Extended planning and analysis expand traditional FP&A by incorporating operational data into financial planning, driving better collaboration across departments. This approach enables organizations to reconcile financial goals with operational realities, facilitating a more holistic and data-driven approach to planning.
In the coming year, extended planning and analysis will be essential for aligning operational planning with corporate financial goals, ensuring that finance and operational leaders work together seamlessly.
According to the survey, over 60% of companies are already using Revenue Performance Management (RPM), and 53% are engaged in workforce planning with extended planning and analysis solutions.
These trends signal the growing importance of extended planning in areas such as sales performance management, workforce planning, and services planning.
Putting new tools to work when it counts most
The past few years have underscored the importance of agility and speed in finance. Companies that had integrated planning systems in place, for example, during the pandemic period from early 2020 onwards, were better able to pivot, re-forecast, and adjust their strategies in response to sudden market changes.
The ability to handle large volumes of data, combine financial and operational insights, and leverage AI and automation for predictive planning is proving to be a significant competitive advantage. For example, 46% of companies expect to use predictive planning to validate manual plans, while 31% anticipate using it for automated simulations and scenarios.
As organizations face unexpected disruptions, those with comprehensive and integrated tools will find it easier to navigate challenges with confidence. Tools that combine machine learning with financial and operational data can uncover critical insights, allowing finance leaders to respond swiftly to changing circumstances.
How these capabilities work together
These capabilities are not standalone solutions but interconnected tools that enhance each other. Machine learning makes predictive planning more effective by analyzing large datasets, while generative AI can provide more valuable insights when fed both financial and operational data.
Integrating ERP and FP&A systems creates a solid foundation for collaboration, giving finance leaders the comprehensive data they need to guide decision-making across the organization. As these tools are adopted and refined, companies will be better prepared to handle uncertainty and capitalize on emerging opportunities.
Equipping finance for the future
The trends outlined in the whitepaper highlight the transformative power of AI, integration, and extended planning in financial operations. As businesses continue to face uncertainty, the finance leaders who embrace these tools will be the ones who navigate change with agility and foresight.
To learn more about these trends, download the full whitepaper and watch our on-demand webinar to understand how you can equip your organization with the latest finance capabilities that will set you on the road to success in the year ahead.
By leveraging these emerging capabilities, you can future-proof your finance function, making it a strategic driver for your organization’s success in uncertain times.
