CFO challenges are taking a turn in 2025. Businesses are adjusting to new demands, and the CFO’s role is to adapt alongside them. This isn’t new, though. So, what do CFOs consider to be their top priority?

During the financial downturn 2008, CFOs were key to keeping businesses afloat. With budgets tight and oversight increasing, they had to guide companies through uncertain times. Over time, the role of the CFO grew. By the 2010s, they were involved in decisions beyond the financials, like operations and technology.

Now, in 2025, CFOs are taking on even more. They are engaged cross-functionally across the organization, playing a key role in business strategy, capital allocation, and risk management. And with more responsibility, the pressure is higher. CFOs are tasked with investor relations, technology transformation, and corporate growth. This is no easy feat in 2025. Let’s discuss why. 

1. How Do Economic Conditions Impact CFO Priorities This Year?

Economic uncertainty is front and center for CFOs in 2025. Ongoing inflation, fluctuating interest rates, and geopolitical instability are all to blame. There’s a sense of unpredictability in the air. 

While the U.S. experienced substantial growth in 2024, inflation has been stickier than expected. According to the IMF, global growth in 2025 is expected to stay at 3.3%, just under the average of the past 20 years. Currency depreciation in emerging markets has added even more pressure. Global elections and potential policy changes also bring new risks.

However, CFOs are cautiously optimistic. They’re finding confidence in managing costs and investing in value-driven opportunities, especially with technology. Vanguard’s Investor Pulse survey found that investors expect a 6.4% market return in 2025, with strong 10-year forecasts for returns and GDP growth. 

CFOs are making moves to build organizational resilience. Many are turning to technology like AI to simplify their operations. They’re improving forecasting with advanced tools, diversifying revenue streams, and strengthening supply chains. 

The Private Funds CFO Insights Survey 2025 shows that 54% of respondents are exploring AI use cases, up from 50% last year. Additionally, 15% have already implemented AI solutions, up from 11%. CFOs know uncertainty is here to stay, but innovative strategies will help them stay ahead. 

2. How Can CFOs Balance Investments with ROI?

Tech is reshaping finance, and CFOs are under pressure to ensure their investments pay off. Decisions about buying or building tools to improve data quality will be crucial in 2025. Here’s how some CFO trends are expected to play out.

• Agentic AI is the next big thing. These autonomous digital agents improve decision-making and reasoning in finance. According to Yahoo Finance, Adobe’s CFO Dan Durn calls it “just a natural evolution in the journey we’ve been on. ” 
• AI could drive up software stocks in 2025, according to analysts. 

Despite all the excitement around using AI in finance, many CFOs are taking a ‘fast follower’ approach. Before jumping into artificial intelligence finance functions, they want to see how it works in other industries. Accuracy is a valid concern, especially with the threat of AI hallucinations. For the modern CFO, artificial intelligence is promising but requires caution.

As Snowflake CEO Sridhar Ramaswamy points out, some models are inherently flawed because they’re designed to produce answers, even if some are incorrect. For example, Alphabet’s AI chatbot, Bard, made a mistake that caused a $100 billion drop in stock market value. This is one of the toughest challenges to overcome with artificial intelligence.

Here’s what CFOs are facing:

• 65% feel pressure to show faster ROI from tech investments, according to IBM’s 2024 CFO Study.
• Many focus on short-term financial goals rather than long-term strategy.
• CFOs who align tech with business priorities are seeing better results.

Ultimately, CFOs must balance innovation with cost reduction and risk management. The push for ROI is strong, and CFOs must ensure their decisions pay off.

Ultimately, CFOs must balance innovation with cost reduction and risk management. The push for ROI is strong, and CFOs must ensure their decisions pay off.

3. How Are CFOs Adapting to Changes in Regulatory Compliance?

In 2025, CFOs will see significant changes in tax laws, trade policies, and sustainability reporting requirements. As highlighted by EY, updates to the Tax Cuts and Jobs Act (TCJA) are a top focus. 

CFOs should be aware of Global Intangible Low-Taxed Income (GILTI) rules, especially those regarding foreign income. Tax policies may shift toward sourcing and procuring more domestic products, adding new challenges.

Corporate governance is also more critical than ever. With increasing political and environmental uncertainty, strong governance practices will be essential. CFOs will lead the way in ensuring the reliability of their company’s ESG data and financial reporting.

Mergers and acquisitions will also see changes. CFOs expect easier approvals, but antitrust rules might tighten. Staying ahead of these changes is crucial. Regulation changes will be challenging in 2025, but top CFOs will work to turn them into opportunities.

4. How Are CFOs Handling Talent Shortages?

The main concerns for CFOs in 2025, as highlighted by a Gartner Finance survey, are talent retention and slower top-line growth. Talent shortages, especially at the junior level, are a concern, too. Randstad shares that around 90% of CFOs now outsource core accounting and finance functions to bridge these gaps.

That’s why, according to PwC, 52% of CFOs will prioritize hiring skilled talent in 2025. The right technical expertise is key as automation and advanced technologies reshape finance. It ensures that tools deliver the results they’re meant to. 

If you’re not upskilling, you’re falling behind. CFOs are building teams with strong digital skills and the ability to turn data into actionable insights. This approach has proven to improve workflows and keep employees invested in their roles.

Retention is just as necessary as recruitment. Changes like remote work, layoffs, and evolving employee priorities have made workforce planning more challenging. These shifts raise important questions:

• How much should companies invest in professional development?
• What’s the right balance between full-time staff and contractors?
• How does remote work impact productivity?

AI presents another challenge. CFOs need to ensure that AI complements human expertise rather than taking its place. According to CFODive, boards expect a balanced strategy where technology and talent work together to support growth. 

This process isn’t easy, though. CFOs must equip their teams to handle today’s pressures and prepare for tomorrow. The pressure is on to balance forward-thinking AI investments with careful spending.

5. Can CFOs Balance Sustainability Goals with Profitability?

CFOs walk the fine line between sustainability and profitability, and their responsibilities have grown. There’s mounting external pressure to take on ESG initiatives. Increasing regulations and rising stakeholder expectations raise the stakes. 

Finance leaders need to ensure compliance without losing sight of financial goals. Fortunately, partnering with Chief Sustainability Officers (CSOs) helps maintain this balance. Here’s what they have on their radar in 2025: 

• Changing regulations like the EU’s Corporate Sustainability Reporting Directive (CSRD) will go live in 2026, according to Thomson Reuters. 
• Using AI and analytics to simplify ESG reporting helps lower costs, make data more reliable, and keep sustainability efforts moving toward their financial goals.

• Focusing on key issues like supply chain practices and climate risk mitigation to meet long-term goals.
• Supporting strong governance to handle uncertainties, from political shifts to extreme weather.
• Making ESG a priority in mergers and acquisitions. CFOs and CSOs are aligning acquisitions with their financial and sustainability goals. The goal is to strengthen their market position and drive innovation.

CFOs and CSOs are leading businesses into a low-carbon economy. They’re baking ESG into their strategies to power growth by combining financial discipline with sustainability leadership. The result is future-focused businesses.

6. How Are CFOs Managing Risks Associated With Inflation and Market Volatility?

2025 is shaping up to be a year full of financial challenges. According to the Global Risks Report 2025, the world is becoming more divided regarding politics, climate change, the economy, and technology. There’s no way around it — finance leaders must practice proactive risk management. 

Inflation remains a worry. While it’s easing, economic downturns or trade restrictions could push it higher. Geopolitical tensions add uncertainty, and these risks can disrupt supply chains. 

Cybersecurity is another growing risk. The average breach cost $4.9 million in 2024, excluding any reputational damage. Statista says the global cost of cybercrime will reach $10.5 trillion in 2025. CFOs must work closely with tech teams to protect data and strengthen controls significantly as artificial intelligence and automation grow. Staying compliant with changing laws is just as important.

To manage these risks and more, CFOs should:

• Keep an eye on inflation and adjust their strategies.
• Diversify suppliers and put contingency plans in place.
• Partner with CIOs and CTOs to strengthen company-wide cybersecurity and compliance practices.

CFOs can do their best to mitigate risks by staying one step ahead of them. However, as we learned from the COVID-19 pandemic, this isn’t always possible.

Like personal finance, where you need to monitor living expenses, plan for retirement, and have an emergency fund, CFOs must ensure financial stability and build a solid financial cushion to navigate challenging times. This helps keep things steady when financial challenges inevitably hit.

7. What Strategies Are CFOs Implementing for Financial Forecasting and Budgeting?

CFOs know the value of precision. That’s why 85% of finance leaders are focused on improving financial forecasting accuracy, according to FTI Consulting’s 2025 Global CFO Report.

AI, predictive analytics, and automation are reshaping how businesses approach forecasting and financial planning to meet these demands. Finance leaders can model complex scenarios like revenue growth or cost changes with AI tools. This improves financial planning and forecasting accuracy while helping to manage market uncertainties.

AI-driven forecasting lets finance leaders adapt quickly to new information. It keeps businesses agile and prepared for any challenges.

Two areas where AI can be an asset for financial forecasting:

• AI predicts future trends based on past data.
• Automation delivers real-time insights for fast responses.

Insights from Deloitte’s Crunch Time Series for CFOs: Finance 2025 Revisited show that CFOs are also shifting from static to dynamic budgeting. Traditional budgets are set once and rarely adjusted. On the other hand, dynamic budgets allow for continuous updates based on actual performance and market changes. This makes financial and strategic planning much more flexible.

8. How Can CFOs Manage Costs While Driving Efficiency?

CFOs are getting creative with their spending strategies. They’re focusing on cost management, strategic planning, and resource allocation to achieve and maintain efficiency across the board.

The main strategy is investing in technology. PwC notes that about 44% of CFOs prioritize tech solutions that improve efficiency and cost management. As we’ve discussed, automation plays an essential role in digital transformation. It’s the epitome of doing more with less, and it’s what CFOs need to free up resources for more strategic initiatives.

When it comes to cloud management, CFODive says the focus is changing from simply cutting expenses to creating value. CFOs use AI and predictive analytics tools to make smarter, data-driven decisions. These tools improve cloud governance and reduce inefficiencies. They help reduce costs by keeping cloud spending under control.

More companies are also turning to managed FinOps services. These services help businesses manage cloud finances without building an internal team. This leads to lower operational costs, with up to 30% savings, while providing expert support without the extra overhead.

9. How Are CFOs Leveraging Data Analytics for Decision-Making?

In 2025, chief financial officers will rely on data analytics to make faster, smarter decisions. As their responsibilities grow, Gartner says that over 75% now say they’re accountable for enterprise-wide data and analytics.

Data quality is high on the agenda. 35% of CFOs cite it as a significant barrier to AI adoption in finance. It only gets in the way of customer relationships. Finance leaders, as MIT points out, are addressing this by:

• Improving accuracy. Only 33% of organizations report having a data- and AI-driven culture, down from 43% last year.
• Running regular audits to catch and fix issues early.

Building data skills. 92% of data leaders say cultural and change management challenges are the most significant barriers to becoming truly data-driven.

CFOs are using advanced tools to stay ahead. Financial reporting requirements, cost optimization, and finance planning are all simplified. AI has brought unstructured data, like text and images, back into focus. The 2025 AI & Data Leadership Executive Benchmark Survey shares that: 

• 94% of data leaders say AI makes them prioritize organizing unstructured data.
• Sorting and tagging this data is still challenging but holds potential.

Leadership roles are evolving, too. Most large companies now use a Chief Data Officer, and Chief AI Officers are becoming more common. LinkedIn notes that 13% more organizations have added AI executive leadership roles since late 2022. Still, many leaders feel their roles aren’t fully understood, which limits their impact.

10. What Does Effective Stakeholder Communication Look Like?

Clear communication will be a baseline expectation from stakeholders in 2025. Investors, boards, and employees expect transparency, especially considering our uncertain economic times. Stakeholders are worried, and expectations are higher. PwC notes that 76% of directors say the US regulatory environment is either a moderate or severe risk.

Here’s why clear communication with stakeholders will prove to be important in 2025:

• Stakeholders expect more than financial results. Investors, employees, and customers care about long-term value — employee engagement, customer satisfaction, and societal impact.
• Board responsibilities are growing. With more uncertainty and complex decisions, aligning leadership and stakeholders is challenging.
• Emerging risks are rising. Cyberattacks, regulatory changes, and other unpredictable factors are complex to manage.
• Board governance is under the spotlight. Governance practices are being closely watched. CFOs need to keep communication clear to avoid confusion.

To make an impact, CFOs need to:

• Work hand-in-hand with the CEO and board. This means sharing meaningful insights, aligning priorities, and balancing short-term wins with long-term financial goals.
• Own the risk conversation. Be proactive in sharing challenges and solutions. The only way to make progress is to plan ahead.
• Push for transparent financial reporting. Keep stakeholders confident with honest updates on financial health.
• Think beyond the numbers. Decisions should be based on multiple perspectives to create lasting progress. Metrics like engagement and customer impact are also essential to measuring success.

Businesses that put all stakeholders first tend to enjoy stronger employee engagement, lower capital costs, and steady growth. They also open themselves up to investment opportunities. However, there’s a way to go about this. 

Warwick Business School shares that top-level decisions must resonate with the operational side. Involving key process stakeholders, especially middle management, helps a company bridge the gap and achieve this. It helps ensure that strategy, process, planning, and execution are aligned at every level.

11. How Are CFOs Addressing Cybersecurity Concerns?

Cybersecurity threats are hitting finance teams harder than ever. CFOs are teaming up with IT to protect critical systems from growing threats like deepfakes, ransomware, and insider threats. 

FTI Consulting’s 2025 Global CFO Report states cybersecurity is now a top-three priority. In North America, 75% of CFOs see cyberattacks as a major challenge, driving more investment in security.

Deepfakes are becoming a serious issue. For example, a finance worker was tricked into transferring $25 million to fraudsters using a deepfake of the CFO on a video call. AI is also making phishing emails more convincing, so steps like call-back verification are essential to stop fraud.

Ransomware attacks and insider threats are increasing. Attackers now use ransomware-as-a-service, making these attacks easier to launch. Regular access reviews and monitoring can help avoid any misuse by insiders. Chief Financial Officers and IT teams must quickly detect and contain threats.

Key actions for Chief Financial Officers :

• Use smart tools to detect deepfakes and phishing emails before they cause damage.
• Set up strict access controls and review them regularly to reduce insider vulnerabilities.
• Create clear plans to handle ransomware attacks and major cyber incidents quickly.

CFOs need IT in their corner. Strong defenses go a long way in earning customer and investor trust.

Stay in Control with Upland Cimpl

It’s a high-pressure year for CFOs. With inflation climbing, interest rates fluctuating, and global tensions rising, it’s hard to know what’s next. That’s why growth and crisis management are top priorities, but tight schedules and talent shortages make it harder to keep up. These days, people are leaning on smart tools to handle the pressure.

Technology expense management plays an important role, and Upland Cimpl simplifies it. It works hand in hand with your existing systems for more intelligent budgeting and decisions. Cimpl offers finance teams the freedom to focus on the bigger picture.

In a challenging year, tools like Cimpl bring clarity and control to financial planning. They give CFOs the support they need to hit financial goals. Cut back on your technology expenses with Cimpl. Get started today.