The next-gen CFO has entered the chat—or is this a glitch?

CFOs have long been the stewards of financial stability, but as the Horváth CFO Study 2025 reveals, their roles are rapidly evolving.  Against a backdrop of persistent economic uncertainty, optimism prevails: 65% of surveyed CFOs expect their company’s economic situation to improve or remain positive through 2025. Yet, the path forward is far from straightforward.

The study underscores a critical paradox: while generative AI (GenAI) and automation promise transformative efficiencies, the pace of adoption remains sluggish, hindered by skill shortages, data infrastructure gaps, and legacy processes.

An Optimistic Outlook with Caveats

Economic uncertainty has been a constant companion for CFOs in recent years, but the study paints a cautiously optimistic picture.

A majority of respondents—65%—believe their companies’ financial trajectories will remain stable or improve, with only 28% anticipating deterioration. This sentiment contrasts sharply with the volatile macroeconomic environment and mounting geopolitical risks, including the potential fallout from the U.S. presidential election—an event 50% of CFOs see as inconsequential to their business development.

While this optimism is a promising signal, it carries a caveat. The study highlights a significant gap between the aspiration for growth and the operational realities many CFOs face. Economic stability, while vital, is only the baseline.

The (Gen)AI Paradox

Few technologies have captured the imagination of finance professionals like (Gen)AI. Promising enhanced forecasting, automated reporting, and data-driven decision-making, AI and GenAI represent a leap forward in performance management. Yet, the study reveals a stark reality: while 53% of CFOs acknowledge its potential to revolutionise processes, only 3% have fully implemented (Gen)AI projects. A further 55% have not even started planning.

This disparity underscores a paradox. On the one hand, (Gen)AI offers significant opportunities for improving efficiency and accuracy. Use cases highlighted in the study include predictive analytics for forecasting, algorithm-driven variance analyses, and even chatbot-supported report generation.

On the other hand, systemic barriers persist. CFOs cite a lack of skilled data specialists, inadequate IT infrastructure, and resistance to organisational change as the primary hurdles.

Strategic Priorities: Digitisation, ESG, and Workforce Transformation

The study outlines three strategic imperatives for CFOs aiming to stay ahead of the curve:

• Digitisation and Automation

Digitisation remains the cornerstone of next-generation performance management. CFOs are increasingly prioritising investments in integrated data platforms and predictive capabilities, with 88% of respondents identifying harmonisation and standardisation of financial processes as a top priority for 2025.

However, progress remains uneven. The study highlights inefficiencies in budgeting and reporting, where manual processes consume disproportionate resources.

Automation offers a clear path forward. By streamlining workflows and enabling real-time data integration, CFOs can enhance decision-making and reduce resource burdens. For instance, predictive analytics can transform forecasting from a reactive exercise into a proactive, strategic tool.

• Sustainability Integration

ESG metrics are no longer optional; they are essential components of corporate strategy. CFOs are tasked with integrating sustainability considerations into performance management systems, aligning with regulatory frameworks like the EU’s Corporate Sustainability Reporting Directive (CSRD).

Yet, this integration poses its own challenges, particularly in balancing non-financial metrics with traditional financial KPIs.

• Workforce Transformation

The talent gap is a recurring theme in the study. CFOs identify a pressing need for data specialists who can design advanced algorithms and develop predictive models. Building these capabilities will require significant investment in upskilling and reskilling, particularly as finance teams transition to roles that combine analytical expertise with strategic insight.

Performance Management: WIP

The current state of performance management, as revealed by the study, is one of high aspirations but uneven execution. While most CFOs report that their organisations meet basic performance management requirements, inefficiencies abound. Budgeting and reporting, in particular, are areas of excessive effort with minimal returns.

The solution lies in rethinking resource allocation. The study advocates for a shift towards more agile and integrated processes. For example, self-service reporting platforms can empower teams to generate insights on demand, reducing reliance on centralised functions. Similarly, cross-functional planning platforms can break down silos, enabling more cohesive and adaptive decision-making.

The Journey Has Just Begun

At the heart of these challenges and opportunities is the evolving role of the CFO.

The study underscores a critical shift: CFOs are no longer just financial stewards; they are strategic enablers and change agents. This expanded remit demands a new leadership paradigm—one that balances technical acumen with visionary thinking.

To succeed, CFOs must champion innovation within their organisations. This means not only investing in (Gen)AI and automation but also fostering a culture of curiosity and continuous improvement. It means breaking down silos and encouraging cross-functional collaboration. And it means leading by example, demonstrating the value of data-driven decision-making at every level.

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