New podcast episode from KOKAI
FP&A's Seven Key Shifts for 2025
The Financial Planning & Analysis (FP&A) function is on the cusp of significant change, with seven key shifts anticipated by 20251. These transformations are largely fuelled by technological advancements, most notably Artificial Intelligence (AI) and cloud computing.These technologies are expected to bring about AI-powered automation of forecasting, enabling more accurate and efficient predictions through complex data analysis. Furthermore, the primacy of real-time data in decision-making, facilitated by cloud platforms, will empower faster and more informed choices. This technological push is coupled with a move towards breaking down silos through integrated planning, where financial and operational planning merge for unified strategies. The future FP&A will also involve preparing for uncertainty with scenario planning, utilising AI-driven financial modelling to assess different outcomes. Enhanced collaboration across departments will be crucial for aligning financial strategies with overall business goals. Moreover, sustainability reporting (ESG) will gain importance in financial planning, driven by transparency and ethical considerations. Finally, leveraging advanced analytics for strategic insights, using big data and sophisticated tools, will enable FP&A professionals to provide deeper guidance for business decisions. In essence, the FP&A landscape in 2025 will be characterised by enhanced efficiency, accuracy, and a more strategic and holistic role within organisations, driven by technological adoption and evolving business needs.
