The role of the Chief Financial Officer isn’t what it used to be. Picture a CFO from a decade ago, laser-focused on quarterly reports and cost control. Fast forward to today: a modern CFO might start the morning reviewing an AI-driven forecast, spend the afternoon aligning a sustainability initiative with corporate strategy, and end the day strategizing on talent and digital investments. 

About 41% of CFOs now spend the majority of their time on non-finance activities, fueling data-driven decisions across the business​

This transformation didn’t happen overnight. It’s the result of an evolving mandate that has pushed CFOs from number crunchers to strategic leaders at the heart of the enterprise.

The CFO’s Expanding Mandate: From Finance Expert to Strategic Partner

The CFO’s portfolio has broadened dramatically, encompassing far more than managing the books. Recent research confirms what many CEOs have observed anecdotally – CFOs are more deeply embedded in strategy and operations than ever. In the past five years alone, the share of finance leaders responsible for their companies’ digital initiatives has more than tripled, and nearly two-thirds of CFOs now oversee investor relations (up from 44% just a few years prior)​

CFOs are increasingly the “go-to” executives for financial stewardship and guiding corporate strategy, driving performance improvements, and even leading enterprise-wide transformations.

Yet a perception gap remains. Many colleagues outside finance still assume the CFO’s value lies mainly in traditional areas like accounting and cost management​

​The reality is far different. CFOs themselves report spending most of their time on strategic leadership (46% of CFOs) and organizational transformation (45%), versus, say, 18% on improving core finance capabilities​.

In other words, today’s CFO is often the de facto co-pilot to the CEO – a far cry from the back-office bean counter stereotype. As one McKinsey expert put it, this era of change is an opportunity for CFOs to have “disproportionate impact, becoming almost a copilot of the business with the CEO”​

The expanding mandate means CFOs are expected to wear multiple hats and orchestrate cross-functional efforts to drive value.

Digital Transformation: CFOs Double Down on Data and AI

Alt text: A finance professional analyzing data on multiple screens, representing the CFO’s use of advanced analytics and AI in decision-making.

Not long ago, “going digital” might have been solely the CIO’s realm. Now, it’s front and center on the CFO’s agenda. Across finance organizations, digital adoption has surged – and the numbers tell a compelling story. The use of robotics and artificial intelligence (AI) in finance has more than tripled in recent years, while the use of advanced analytics has almost doubled​. 

Nearly six in ten finance leaders report a positive return on investment from IT and digital initiatives in the past year​.

CFOs leverage AI to crunch vast data sets for forecasting and risk management, detecting patterns humans might miss. In one global survey, the percentage of companies using AI in at least one business function jumped from 55% to 72% in just the past year​ – a sign of how quickly AI integration is becoming mainstream in decision-making.

This tech revolution in finance means CFOs are often the champions of automation projects and data analytics platforms. By streamlining routine tasks (from invoice processing to compliance reporting) through automation, CFOs free up their teams to focus on higher-value analysis. 

The best CFOs are not just embracing new tools but fostering a culture of innovation. They encourage their finance teams to experiment with emerging technologies and spread digitization across the organization​

At the same time, they recognize a new challenge: a growing digital skills gap. A recent study found only 11% of senior finance managers have strong digital proficiency, lagging behind their more tech-savvy junior staff​

The takeaway is clear – tomorrow’s finance leaders must be as fluent in data and technology as they are in accounting. As one expert noted, CFOs need team members with data science and engineering skills on board to meet the expanding scope of the finance function​. 

In 2025 and beyond, digital finance isn’t just about new software; it’s about a new mindset, where finance chiefs drive innovation as boldly as they manage risk.

ESG and Sustainability: CFOs as Stewards of Value and Values

Environmental, social, and governance (ESG) priorities have rapidly moved from peripheral reports to core business strategy – and CFOs are taking a leading role in this shift. Where once a CFO’s involvement in ESG might have been limited to disclosure and reporting, today’s finance chiefs are rolling up their sleeves to shape ESG programs and embed sustainability into financial decisions​.

The payoff for companies is tangible: when CFOs are actively engaged in ESG topics, there is a 20 to 30 percentage point higher alignment between sustainability initiatives and the company’s strategic goals​. In other words, CFO involvement helps ensure that ESG efforts truly support long-term value creation, rather than run parallel to it.

Why are CFOs leaning into ESG? Investors and boards are demanding it. More than 80% of C-suite leaders and investors expect ESG programs to contribute more shareholder value in five years than they do today​

Financial leaders, traditionally known for skepticism, increasingly see the upside. Many now believe that if done right, ESG initiatives can drive top-line growth and competitive differentiation, not just satisfy compliance​

This optimism comes with responsibility: nearly all respondents in one survey said CFOs should be at the forefront of shaping the company’s ESG narrative and strategy​. From calculating the ROI of carbon reduction projects to integrating social impact metrics into performance dashboards, CFOs are working to translate ESG into financial terms that resonate in the C-suite and with investors.

The regulatory landscape is also raising the stakes. New disclosure requirements are kicking in around the world, and 2025 is a critical year. In Europe, the Corporate Sustainability Reporting Directive (CSRD) takes full effect, expanding the scope of companies required to report detailed sustainability data (including Scope 3 emissions) for fiscal year 2024​. 

Approximately 50,000 companies – including many multinationals – will fall under its purview, forcing finance teams to gather and assure a deluge of ESG metrics. Even without uniform mandates in the U.S. yet, global companies can’t wait: as of mid-2024, 75 countries and territories had enacted either mandatory or voluntary ESG reporting standards​. The message to CFOs is clear: prepare now. Leading CFOs are investing in systems and tools (even AI for carbon accounting) to handle the complexity of ESG data and compliance​. 

Beyond compliance, they’re reframing ESG as part of enterprise risk management and strategy – ensuring that sustainability goals dovetail with financial goals rather than conflict. In doing so, CFOs are positioning their companies to not only meet new regulations but to gain an edge with stakeholders who increasingly favor sustainable business practices.

Looking Ahead: Key Trends on the CFO’s Radar

The coming years will continue to test and elevate the CFO’s role. Economic uncertainty remains a constant backdrop – whether it’s navigating inflation, interest rate swings, or supply chain disruptions. CFOs are responding by sharpening their focus on scenario planning and risk management, stress-testing their companies against best- and worst-case situations​

Agility has become a finance mantra: real-time dashboards and predictive analytics help CFOs pivot quickly when market conditions change​. In parallel, regulatory complexity is growing beyond ESG. Tax reforms, data privacy laws, and industry-specific regulations are all on the rise​.

The modern CFO must be a quick study of new rules, often acting as an interpreter between policymakers and the business. Investing in compliance technology and expertise is no longer optional, as finance chiefs strive to keep their companies ahead of the curve (for example, many are already upgrading systems in anticipation of global tax changes and new anti-money-laundering requirements by 2025​).

Another significant trend is the transformation of the finance workforce. As automation handles more rote work, CFOs are rethinking the skills profile of their teams. Data scientists, analysts, and strategists are becoming as important as accountants. Upskilling and talent retention are high priorities – CFOs know that to harness AI and analytics, they need people capable of wielding those tools effectively​.

This extends to the CFO themselves: continuous learning is part of the job description now, whether it’s understanding blockchain or mastering storytelling with data. A forward-looking CFO also embraces a more collaborative leadership style. Working closely with the CEO, CIO, COO, and Chief Sustainability Officer, finance leaders are ensuring that digital investments, operational decisions, and sustainability goals all align under a unified vision​. 

The lines between C-suite roles are blurring, but this can be an advantage – it creates opportunities for CFOs to drive integrated strategies across the enterprise.

The CFO of 2025 and beyond is expected to be a master of balance – balancing short-term financial performance with long-term innovation, balancing cost control with investment in growth, and balancing shareholder demands with broader stakeholder expectations. Those who succeed will cement their place as indispensable strategic partners in the leadership team.

The evolution of the CFO is a story of expanding horizons. For finance leaders willing to reinvent the playbook, the coming years offer a chance to not only safeguard their companies’ finances but to steer their organizations into the future. The high-impact CFO of 2025 blends financial acumen with strategic insight, digital savvy, and a passion for sustainable growth – truly going beyond the balance sheet to lead the business forward.

Source links:

KPMG Report on AI in Audit & Financial Reporting