FP&A Software Implementation More than Doubled in 2024, Will that Trend Continue?

The momentum shows no signs of slowing down. In 2024, 61% of CFOs implemented FP&A software, a dramatic rise from just 19% the year before. 

This shift marks a clear turning point where FP&A tools are no longer viewed as optional upgrades, they're now considered essential infrastructure.

What was once considered a “nice-to-have” has now become mission-critical. But why the sudden surge, and is it sustainable? 

The surge is driven by several key factors: the need for more accurate forecasting, pressure for real-time insights, AI-powered automation, and greater demand for finance to act as a strategic partner across the business.

Why 2024 Was a Tipping Point for FP&A Adoption

2024 marked a dramatic shift in the mindset of finance leaders. According to a report, 61% of CFOs purchased FP&A software this year, a massive leap from just 19% in 2023.

This wasn’t a fringe trend. FP&A is now firmly mainstream, viewed as a foundational layer of the modern finance stack. As finance teams were pressured to eliminate manual work and respond to market conditions in real-time, the demand for smarter, more dynamic planning tools surged.

From Artificial Intelligence (AI) driven forecasts to automated reporting cycles, CFOs realized that Excel alone could no longer meet the strategic demands of today’s finance function.

What’s Driving the Surge in FP&A Investment

Finance has officially joined the digital transformation movement. Here are several key drivers that fueled this momentum last year:

• Forecasting Complexity - The need for faster, more accurate forecasts amid economic uncertainty is pushing teams to upgrade.

• AI Automation - Finance leaders are no longer just experimenting with AI—they’re embedding it into everyday workflows.

• Speed to Insight - The pressure to produce board-ready reports, ad hoc analysis, and real-time metrics has never been greater.

• Cross-Functional Expectations - The C-suite expects finance to act as a strategic partner. That requires better tools, not more spreadsheets.

These drivers are reflected in the data: 34% of CFOs say digital transformation is their top reason for increased finance software spend, with another 28% prioritizing collaboration and consolidation through automation

FP&A Software as a Strategic Imperative

For CFOs, FP&A software implementation is also about strategic value. When asked about the importance of FP&A tools, 56% of CFOs said FP&A is “very” or “extremely” important, and notably, 0% said it wasn’t important at all

This marks a key cultural shift. FP&A platforms are no longer viewed as upgrade projects. They’re infrastructure, the finance equivalent of a CRM or ERP system.

And what’s shaping tool selection today?

Not price.

Not user interface.

It is the AI features that now top the list of CFO tech priorities, outranking cost and analyst reviews.

AI is now the engine behind modern FP&A, and it’s spreading fast, with 93% of CFOs using AI in some form across their finance function.

The most common use cases:

• Forecasting

• Financial reporting

• Anomaly detection

• Risk management

What Does This Mean for Finance Leaders?

This isn’t just a tech trend. It’s a shift in how CFOs lead, hire, and grow.

• 85% of CFOs are actively advancing their AI knowledge, and more than half say their efforts are “significant or extensive”.

• 91% believe AI skills increase their market value, and 97% have aspirations to become CEOs.

With more ownership over software decisions, CFOs are staking their reputations on the tools they choose. That means implementation, adoption, and ROI are now direct reflections of leadership effectiveness.

Will the Momentum Continue Beyond 2024?

The short answer is “Yes”!

All signs point to continued growth in FP&A software investment into 2025.

Finance software budgets have significantly increased across organizations of all sizes. For example, CFOs at companies with around $800 million in annual revenue reported an average spend of $63,598 on finance tools in 2024. Even smaller organizations—those with 50 to 250 employees—spent more than $55,000, which is a noticeable increase from roughly $47,000 just two years ago.

What’s even more notable is that finance departments are no longer lagging behind in tech spending. In fact, 34% of CFOs say their department now spends more on software than any other business unit. This shift signals that finance is becoming a driver of digital transformation, and technology investments reflect that.

As CFOs demonstrate the strategic impact of real-time insights, predictive modeling, and AI-enhanced planning, we can expect investment in FP&A platforms to grow further, not decline.

What to Watch for in 2025 and Beyond

Looking ahead, several major trends are shaping the next phase of FP&A:

GenAI-Driven Planning

Finance leaders are preparing for a new era of forecasting. Generative AI is enabling real-time, adaptive planning that eliminates the need for manual data entry and static models. This will allow for continuous reforecasting and scenario analysis, fundamentally changing how finance operates.

Lean Finance Teams

Efficiency is taking center stage. 57% of CFOs believe AI will lead to smaller finance teams by 2026, especially in industries like financial services, tech, and healthcare. Routine tasks such as reconciliations, variance analysis, and report generation are increasingly being automated.

Connected Tech Ecosystems

FP&A software is no longer a standalone solution. Integration with core systems like ERP, CRM, HRIS, and business intelligence tools is becoming essential. Finance teams will rely on seamless data flow to generate consolidated, cross-functional insights.

Mid-Market Expansion

What was once a solution only feasible for large enterprises is now accessible to smaller companies. As platforms become more user-friendly, affordable, and scalable, mid-market finance teams will gain access to enterprise-grade forecasting and analytics, leveling the playing field.

The next frontier? A finance function that’s fully autonomous in data collection, analysis, and reporting, freeing the team to focus on strategy and insight.

FP&A Is No Longer a Back-Office Tool

If 2023 was the year of experimentation, 2024 made FP&A software essential. It’s now the central system of high-performing finance teams.

The question is no longer if adoption will grow—it’s how fast and how well.

For CFOs, the choice of FP&A platform is a reflection of vision, leadership, and readiness for a future powered by AI and strategy, not spreadsheets.

Click here for The Finance Weekly's Top 10 FP&A software report for 2025.