The Rise of AI-Driven Strategic Finance
Anders Liu-Lindberg
Leading advisor to senior Finance and FP&A leaders on creating impact through business partnering | Interim | VP Finance | Business Finance
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In the dynamic world of finance and accounting, 2025 marks a pivotal year in the evolution of technology’s role in decision-making. Artificial intelligence (AI), once limited to automation and basic analytics, is now transforming into a strategic advisor for finance teams. This shift promises greater efficiency and a fundamental change in how businesses approach decision-making, scenario planning, and risk management.?
This blog explores how AI redefines finance, delving into its strategic applications, the challenges ahead, and why embracing this trend is critical for future-ready organizations. It’s part of our latest series, where we explore the top trends in finance and accounting in 2025.
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AI’s Journey in Finance: From Automation to Strategy?
Traditionally, AI in finance was celebrated for automating repetitive, time-consuming tasks. Accounts payable, invoice matching, and payroll processing were the low-hanging fruits. AI-powered tools streamlined processes, reduced human error, and freed up time for finance teams to focus on more valuable activities.?
But 2025 signals a new era: AI is no longer just a tool for efficiency. It’s becoming a core component of strategic finance functions. For example:
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In 2025, we will see that AI will continue to make finance and accounting run more efficiently and enhance our capabilities to deliver much more value to the business.?
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Strategic Use Cases of AI in Finance
The rise of AI-driven strategic finance is more than a buzzword; it’s being implemented across industries in transformative ways. Let’s explore some high-impact use cases:
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1. Enhanced Financial Forecasting
Forecasting has always been a cornerstone of finance. However, traditional forecasting relies heavily on historical data and manual input, which can limit accuracy. AI-powered models use machine learning to incorporate real-time data, macroeconomic trends, and external factors. This results in forecasts that are not only accurate but also adaptive to changing market conditions.
Example: A retail company uses AI to integrate supply chain data, consumer sentiment from social media, and weather forecasts. This holistic view enables more precise sales predictions, ensuring optimal inventory levels and reduced waste.
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2. Real-Time Decision Support
AI tools provide finance professionals with real-time insights that were previously inaccessible. By analyzing live data streams, AI can identify opportunities or threats as they emerge, empowering CFOs and finance leaders to act quickly.?
Example: A multinational corporation integrates AI into its treasury function. The system monitors global currency fluctuations and suggests the best times to execute foreign exchange transactions, thereby minimizing costs.
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3. Advanced Risk Analytics
Risk management is a strategic imperative, especially in volatile markets. AI enhances traditional risk models by analyzing diverse datasets—from economic indicators to industry-specific trends—and detecting potential disruptions before they escalate.?
Example: A manufacturing firm employs AI to monitor geopolitical risks in countries where its suppliers operate. The system provides early warnings about potential supply chain disruptions, allowing the company to mitigate risks proactively.
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4. Strategic Cost Management
AI identifies inefficiencies and provides actionable recommendations for cost optimization. AI-driven tools enable more intelligent budget allocation and operational improvements by analyzing spending patterns and benchmarking industry standards.?
Example: A SaaS company leverages AI to analyze subscription renewal rates, customer acquisition costs, and lifetime value. The insights guide the finance team in reallocating resources to the most profitable customer segments.
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This is not an exercise in “Art of the Possible.” These are real cases of companies using AI today to make better decisions and create more value.
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Benefits of AI-Driven Strategic Finance?
Let’s further explore the benefits of using AI in your strategic finance efforts. The adoption of AI in strategic finance brings a host of advantages, including:
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The list goes on, but the benefits are easy to understand, and now they’re more realistic than ever. Of course, we shouldn’t neglect the challenges of using AI for strategic finance.
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Challenges in Adopting AI for Strategic Finance?
While the benefits are clear, the journey to AI-driven strategic finance is challenging. Organizations must address these challenges to unlock AI's full potential:
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1. Data Quality and Integration: AI is only as good as the data it analyzes. Many organizations struggle with fragmented or incomplete datasets, hindering AI’s effectiveness. Ensuring high-quality, integrated data is critical for success.?
2. Skill Gaps: AI adoption requires a workforce skilled in data analytics, machine learning, and AI technologies. However, many finance teams lack the technical expertise to implement and manage these tools effectively.?
3. Change Management: Shifting from traditional finance practices to AI-driven approaches can be disruptive. Organizations must invest in change management to help teams embrace new ways of working.?
4. Ethical and Regulatory Concerns: AI’s reliance on algorithms raises questions about transparency and accountability. Additionally, regulatory compliance remains a significant challenge, especially in industries with stringent financial reporting requirements.
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These challenges are addressable and common when implementing new tools, processes, or working methods. However, companies often fail to address them and then miss out on a substantial part of the benefits a new approach brings. Hence, before getting excited about AI-driven strategic finance, we encourage you to consider how you’re progressing in solving the challenges.
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How to Prepare for AI-Driven Strategic Finance
For organizations looking to stay ahead, preparation is key. Here’s how to get started:
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Looking Ahead: The Future of Finance
The rise of AI-driven strategic finance is not just a trend; it’s a glimpse into the future. As AI continues to evolve, its role in finance will expand, unlocking new possibilities for growth, innovation, and resilience.?
In 2025 and beyond, the most successful organizations will embrace AI as a strategic partner, using its insights to drive smarter decisions, mitigate risks, and create lasting value. For finance professionals, the time to act is now. By adopting AI strategically, you can position your organization—and your career—for success in a rapidly changing world.?
How have you experienced AI’s journey in the finance function? How is your organization leveraging AI in finance? What concerns would you have in using AI for strategic finance? Share your thoughts in the comments below!
This was the second article in a new series looking ahead to 2025. You can read the previous article(s) in the series below. Remember to subscribe to be notified when we publish future articles.
Dive into our latest series on finance driving value creation below. Remember to subscribe to be notified when we publish future articles.
Catch our previous series, "Finance 2035 - what Finance Will Look Like a Decade from Now," below.
Continue reading below for more articles about trends in finance and accounting.
Anders Liu-Lindberg is the co-founder and a partner at Business Partnering Institute and the owner of the largest group dedicated to Finance Business Partnering on LinkedIn, which has more than 12,000 members. I have ten years of experience as a business partner at the global transport and logistics company Maersk . I am the co-author of the book “Create Value as a Finance Business Partner ,” a long-time Finance Blogger, a LinkedIn Learning instructor , and a Top Voice on LinkedIn with 375,000+ followers.
Top Fractional CFO Service | Growth Strategy | Modeling, Analytics, Transformation | 12 M&A & Exit Deals | $500M+ Capital Raised | 10 Yrs CFO | 15 Yrs VC & PE | Wharton MBA | cfoproanalytics.com | New York & Remote
6 小时前Anders Liu-Lindberg, we'll continue to explore AI's strategic finance advisory role.
Retired
1 天前AI is the greatest subject with both accountability and finance waiting until 2025 without setting a different pattern planning is a very important thing and everything in the world is changing
Finance and Administration Manager - Treasury Manager - Human Resouces Manager, Tesorería/Treasury - Recursos Humanos/Human Resources - Administración/administration - Finanzas/Finance, Planificación financiera.
1 天前Very interesting all that has been exposed and of course AI gives many more advantages for what has been mentioned, however I do not see that countries like mine, Colombia, are yet ready to implement AI. AI gives a global vision in terms of information analysis for decision making and reduces the risks of human error, but if I question a lot is with the generation that start in the world of work, as they will have to reinvent themselves to be useful in companies.