Make the Most of Your Budget This Year and Beyond

Prophix May 15, 2023, 7:00:00 AM

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Finance professionals are renowned for being thoughtful, methodical decision-makers. But what happens when your budget increases and staying competitive means you have to be agile and quickly pivot to support future growth? 

In our 2023 Finance Leaders Survey, over 700 finance leaders shared insights into the state of their budgets—and what they plan to do with them—this year and beyond. Finance leaders reported continued confidence from organizational leadership, resulting in increased budgets for 2023. In fact, 52% of respondents said they expect their budget to increase, while 24% expect it to increase significantly. 

First things first: preparation is a key priority  

With growing institutional confidence and the increased budgets that come with it, finance leaders are carefully investing their resources. The top investment priorities this year are: 

• Cybersecurity 
• Planning, budgeting, and forecasting solutions 
• Risk management 

Investments in these foundational technologies are key to transforming processes in the Office of Finance. Investments in these areas will help finance leaders create a strong, stable, and agile base to build upon. 

Finance leaders are going all in on AI (soon)

One of the most striking trends for the next three years is the steady increase in investments in AI and machine learning. AI is the only area of investment that sees an increase in prioritization year over year. This “phase in” approach also indicates a cautious plan for how to invest expanded budgets: finance leaders are focusing on the steps in front of them, and have an eye on the future. 

Here’s a look at when finance leaders plan to invest in AI: 

• 15% said investing in AI technologies is a top priority for 2023 
• 18% said it’s a top priority in 2024 
• 19% said it’s a top priority in 2025 and beyond

The enthusiasm for new AI tools among finance leaders is shown in additional recent research too. According to a Gartner Press Release,¹ “72% of respondents planned to invest in automated machine learning (ML), and 57% planned to invest in Extended Planning & Analysis (xP&A).” On top of that, our own research from last year showed a similar trend toward investing in automation.  

Help your organization step carefully into the future

The results from our report paint a picture of cautious optimism. Investments in systems and technology that help mitigate uncertainty, such as automation and AI, will allow organizations to move away from manual processes and greatly expand their capabilities to prepare for what the future has in store. 

To discover more insights on how finance leaders are elevating the finance function, read the 2023 Finance Leaders Survey.  

Prophix

Ambitious finance leaders engage with Prophix to drive progress and do their best work. Leveraging Prophix One, a Financial Performance Platform, to improve the speed and accuracy of decision-making within a harmonized user experience, global finance teams are empowered to step into the next generation of finance with no reservation. 

 Crush complexity, reduce uncertainty, and illuminate data with access to best-in-class automated insights and planning, budgeting, forecasting, reporting, and consolidation functionalities. Prophix is a private company, backed by Hg Capital, a leading investor in software and services businesses. More than 3,000 active customers across the globe rely on Prophix to achieve organizational success.

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