Great Expectations
The role of CFOs and financial leaders has been evolving. According to research by Pigment, an AI-powered business planning and performance platform, 34% of finance leaders state they are now responsible for decision-making across the larger business, but only 7% of them are completely confident in their ability to make strategic decisions, plan accurately, mitigate risk posed by external threats, and steer their business through unpredictable events. The current disruption in financial markets, tariff policies, and global supply chains is causing headaches for CFOs trying to guide strategic plans and future investments for their manufacturing organizations.
It’s a perfect opportunity for technology to step in. Financial technology is growing and now with generative AI, the industry is tapping into forecasting power. In fact, a recent survey of Manufacturers Alliance members showed nearly all (96%) of finance professionals in manufacturing noted that advanced technology will be critical to the success of their department in the future. However, despite high expectations for advanced technologies in finance, the survey showed uneven adoption.
Large organizations in more agile industries have seen quicker advancements. Banking has shifted IT budgets to react, adapt, and compete with the growth driven by tech giants, including high-level upgrades in existing platforms. With “client expectations of faster, more convenient, and seamlessly integrated services,” realigning the needs and pushing an innovative approach has been achieved largely due to the integration of AI technologies.
Healthcare, with complex data analysis and advanced diagnostic needs in a highly regulated environment, is another industry that has targeted technology. From trend management to optimizing staffing, organizations are prioritizing care while advancing operational efficiency.
Finance departments in manufacturing have, of course, seen adaptation, but with caveats. Despite the wide use of robotic process automation (RPA) (68% adopting), only 24% have automated repetitive tasks, and AI and machine learning adoption sits at just 30% and 26%, respectively. Like in banking, clients in manufacturing expect fast, convenient changes stemming from technological adoptions. But that is not the case.
Finance leaders have low preparedness levels to make any advanced technology adoptions, and insufficient budget to move forward. While expectations for operational efficiency are high, only 52% believe that advanced technology will lead to cost savings. Is it the hyper-customization needed to align with individualized plants, or the data integration concerns around M&A? There are myriad possibilities.
For manufacturers who have adopted advanced technology within their finance departments, the top use cases with recognized success include:
- Driving efficiency by removing repetitive tasks
- Improving forecasting
- Using dedicated tools for business intelligence
Driving Efficiency and Accuracy
Manufacturing has long adopted technology to remove repetitive physical tasks for ergonomics and employee safety. Advanced technology has now made its way into the office, with manufacturers adopting use cases that lend themselves to overarching department improvements in efficiency and accuracy. Fifty-seven percent of surveyed companies have dedicated resources for technology implementation in their finance functions.
The trends are led by a top-down approach but kept within the department. About two-thirds of companies have the team member responsible for implementing finance technology initiatives reporting to the head of finance or accounting.
One of the top use cases that manufacturers target for operational efficiency growth has been adopting RPA to automate repetitive tasks and streamline workflows. Fifty percent of respondents are exploring or piloting advanced technologies for automating reports, and 39% are in the exploration or pilot phase for automating data entry.
With less time needed to manage repetitive tasks, teams can work on more complex activities and face less risk against errors associated with manual processes. According to one survey, 66% of businesses have automated at least one business process, and 50% plan to automate all repetitive tasks. Although the manufacturing industry is slightly behind the adoption-level trend, streamlining workflows benefits cost savings, productivity, and minimizes errors.
Better data enables better decision-making. Forty-eight percent of respondents are either piloting or currently using advanced technologies for customizing real-time dashboards and supporting data-driven decision-making. These real-time analytics support more accurate predictive modeling, an area that is critical for manufacturers monitoring changing conditions around tariffs, supply chain disruptions, and overall business volatility.
In fact, three-quarters of manufacturers are exploring or piloting advanced technologies for estimating financial projections alone, and over half are exploring or planning to use advanced technologies for developing predictive models and enhancing scenario analysis and risk assessment.
Implementation of Advanced Technologies for Strategic Analysis & Decision Making
Source: Manufacturers Alliance member survey, March 2025.
There’s high interest in the adoption of advanced technologies to aid business intelligence, but the predictions are only as good as the data intake. Only 38% are dedicating efforts to enhancing data integration across departments, and slightly more, 43%, are improving data accuracy and consistency through technology. This remains a major challenge across the organization, as manufacturers face similar data quality and integration issues on the operations floor. For more about automation and preparing operations for modern enhancements, check out Legacy Systems & Digital Transformation.
Implementation Challenges and Resource Allocation
Implementation levels have not been universal across companies. Fifty-five percent of companies with over $3 billion in revenue use advanced technologies "sometimes" compared to 54% of smaller companies using them "rarely," which may be due to greater resources being available.
The main obstacle to adopting advanced technology in finance is the shortage of skilled personnel (63%). This concern is far greater than worries about high implementation costs (47%) or the complexity of the technology itself (24%). This highlights the urgent need for investment in training and talent acquisition.
Using the tools takes different skills within the employee talent base. The desire for skills in data analytics and financial modeling is up 8% in 2025 compared to 2024, as organizations report lacking team members familiar with financial software and tools. As roles become increasingly strategic, finding the right talent to understand and interpret data may require realignment.
While 52% believe investment in advanced technologies will lead to cost savings, a substantial 48% disagree or are unsure of cost savings. The financial benefits of these technologies may be in question due to high perceived implementation costs or uncertainty about return on investment.
AI and machine learning, despite the buzz, are still in earlier stages of widespread adoption, at 30% and 26%, respectively. Whether due to budget, talent, or other constraints, innovative technologies are hitting barriers that are slowing adoption.
RPA has been around for a while, and existing users report decent levels of satisfaction, benefiting from its low-code/no-code capabilities.
Future Trends and Impact
There is a perceived light at the end of the tunnel. Seventy-eight percent of members expect a moderate increase in technology investment, with 32% expecting an increase of more than 10% for finance departments, investments expected to continue over the next three years.
Most anticipate increased operational efficiency, enhanced data-driven decision-making, and improvements in forecasting and innovation to be the most significant benefits from the adoption of advanced technologies.
Team Improvements Expected from Advanced Technology
Source: Manufacturers Alliance member survey, March 2025.
All of this points to a forward-looking perspective on the transformative potential of advanced technologies—if the pipeline of talent capable of understanding and interpreting the outputs continues to grow.
With limited manufacturing companies having fully vetted the latest use cases—and the continual release of new technologies, the potential is yet to be fully realized. But as manufacturing progresses in exploration and adapts from the successes seen in other industries, organizations with forward-thinking plans are projecting improvements in efficiency, decision-making, and strategic analysis.
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Members have full access to the complete results, Advanced Technologies in Manufacturing Finance Departments.
