Navigating uncertainty with evolving FP&A trends
In a recent webinar, industry experts explored the transformative impact of emerging trends on finance teams and the pivotal role of Financial Planning and Analysis (FP&A) in managing uncertainty.
The discussion centered on key areas such as artificial intelligence (AI), extended planning and analysis (xP&A), data connectivity and security, and digital transformation for the Office of the CFO.
The growing role of AI in business process management
The role of AI is expanding rapidly. A recent BPM Pulse Survey offered insights into how organizations perceive and implement AI in business process management. AI’s potential to enhance data quality, streamline operations, and provide insights and recommendations makes it an essential tool for modern finance.
AI's business benefits
AI's value lies not just in its underlying technologies but in the outcomes it delivers. From improving data accuracy through anomaly detection to leveraging predictive analytics, AI enables businesses to make smarter, data-driven decisions while freeing up time for those working in areas such as FP&A.
"AI is becoming a game-changer, not just for automation, but for making smarter decisions. It's helping businesses optimize processes, forecast more accurately, and react in real-time to changes in the market." — Craig Schiff, President and CEO, BPM Partners
This emphasis on outcomes highlights AI’s ability to improve planning and decision-making. For instance, AI-powered predictive analytics can forecast trends based on historical data, allowing businesses to respond swiftly to market changes.
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Streamlining processes with AI
AI excels at automating repetitive, multi-step processes through tools like robotic process automation (RPA). Though RPA is often seen as a separate technology, its ability to automate routine tasks aligns with AI’s broader goal: freeing up human workers for higher-value activities.
Generative AI and natural language processing (NLP) are transforming data interaction. With NLP, users can ask simple, intuitive questions like, “What were the budget and actual numbers for June?”—no technical expertise required. This level of accessibility is making AI indispensable for financial analysis and interactive data engagement.
The importance of AI in business agility
Why is AI becoming essential? In an increasingly complex world, businesses must make faster, more informed decisions. AI helps organizations stay agile, ensuring they can forecast, pivot, and adapt without overburdening their teams.
Schiff emphasized, "The ability to look ahead and not just react is becoming more important. Scenario modeling allows you to set up a base case but also understand alternatives—what if things are better or worse?"
Although adoption of AI is still cautious due to data quality concerns and high-profile failures, the future looks promising. As businesses gain confidence in AI’s reliability, adoption rates are expected to rise.
AI is not about replacing human jobs but about augmenting human capabilities, particularly in areas that require quick analysis of large data sets.
Extended planning and analysis
The rise of Extended Planning and Analysis (xP&A) reflects a shift towards more integrated planning approaches, connecting financial planning with operational activities. Organizations are recognizing that synchronizing these two elements is critical for effective decision-making and performance management.
Historically, operational and financial plans existed in silos, but now, businesses are realizing the importance of integration. Schiff explained, “The key element is tying operational plans to financial plans, which are tied to your strategy. When they all work together, that’s where you deliver the benefits of what we call performance management.”
Data connectivity and security
Data connectivity and security were recurring themes throughout the discussion. Integrating financial planning systems with operational data sources ensures that businesses have access to accurate, timely information, which is essential for effective decision-making.
The importance of robust data security cannot be understated. In an era of increasing cyber threats, maintaining the integrity and security of sensitive financial data is critical to organizational success.
Finance digital transformation
Digital transformation is driving significant changes in finance, but technology alone is not the solution. Success requires a holistic approach, one that incorporates organizational structure, processes, and culture.
As businesses aim for more unified systems, streamlined processes, and improved planning cycles, finance teams are playing a central role in these transformations.
According to Schiff, "Finance transformation is about streamlining processes. Don’t just automate a bad process—you’ll get some benefit, but to get the true benefit, you need to optimize it first." This shift from mere automation to full optimization is reshaping how businesses approach digital transformation, as well as helping functions such as finance from feeling they are trapped in a reactive cycle of reporting and data requests.
What’s next?
As businesses continue to navigate an uncertain future, AI, xP&A, and integrated systems will be critical tools in managing volatility. Scenario modeling, continuous forecasting, and more robust decision-making will help organizations stay resilient.
In fact, 71% of survey respondents indicated that their planning systems were essential in navigating recent economic challenges.
Organizations that embrace these trends will be better equipped to adapt to market changes and ensure long-term success.
Final thoughts
To thrive in a rapidly evolving business environment, FP&A teams must embrace AI, xP&A, and integrated cloud-based systems. By focusing on data integration, security, and holistic digital transformation, finance leaders can ensure their organizations remain agile, informed, and well-positioned for long-term growth.
You can watch the webinar here, and you can download the BPM Partners whitepaper ‘FP&A Forecast: More Uncertainty Ahead’ here. And for more information on Unit4’s integrated suite of solutions, click here.
