Corporate Finance and Financial Modeling: Industry Report

Summary

Corporate finance and financial modeling sit at the center of planning, forecasting, capital allocation and performance reporting. Survey evidence from several global providers shows strong interest in predictive modeling and AI, but adoption in core workflows is uneven. One industry association finds only 17% of finance teams actively use AI in core workflows ⁵, while a global survey reports 63% of finance leaders have fully deployed AI solutions ⁴. Market research forecasts FP&A software to grow at a 16.4% compound annual rate ⁶, but these figures come from secondary summaries and are not yet verified. Principal risks include skills gaps, weak data infrastructure and vendor-sourced claims. IFRS 18 changes income statement presentation and management-defined measures in IFRS jurisdictions, which will affect how modeled results are reconciled to reported figures ⁷⁹. Verified data on vendor margins, pricing, fraud and regulator filings was not available.

Key findings

1. 1

   AI interest is high but use in core workflows is limited

   A CFO Connect report cited in an event recap finds only 17% of finance teams are actively using AI in core workflows, while 87% of CFOs expect AI to be very important to operations ⁵. A separate global survey reports 63% of finance leaders have fully deployed AI solutions ⁴. The two measures are defined differently, so the gap should be read as a sign of uneven adoption rather than a precise rate.

   Confidence: Medium
2. 2

   Skills preparation lags the demand for AI skills

   A CQF Institute survey of 135 quantitative finance professionals found 76% say their preparation did not cover the AI skills they need ⁵. A global survey also reports that 64% of respondents plan to add more technical skills to their finance functions over the forecast window ⁴. The sample is small and the skills measure is self-reported.

   Confidence: Medium
3. 3

   Scenario modeling and predictive analysis are top CFO priorities

   A survey of 700 CFOs worldwide reports predictive modeling as a priority for finance functions, and cites scenario modeling as a focus for 70% of respondents in the extracted text ². The pack did not include the full survey, so the 70% figure is taken from an excerpt.

   Confidence: Medium
4. 4

   FP&A software is forecast to grow strongly, but the forecast is secondary

   A market research summary forecasts FP&A software to grow from USD 3.88 billion to USD 13.43 billion over the forecast window, implying a 16.4% compound annual growth rate ⁶. The figure is a forecast from a secondary summary and needs primary verification before use.

   Confidence: Qualitative
5. 5

   IFRS 18 changes the income statement and management-defined measures

   IFRS 18 replaces IAS 1, requires income and expenses to be classified into five categories, and introduces two new mandatory subtotals in the statement of profit or loss ⁷⁹. Management-defined performance measures must be disclosed in a single note with a reconciliation to the nearest IFRS subtotal ⁸.

   Confidence: High
6. 6

   Market share appears concentrated, but the estimate is unverified

   A market research report estimates the top five FP&A software players account for more than 50% of global market share, with North America above 50% of the global market ¹⁰. The report's base year is not exact, and the figures were not checked against company filings.

   Confidence: Qualitative

1Industry definition and scope

This report covers corporate finance and financial modeling: the planning, valuation, forecasting, capital allocation and performance reporting activities carried out inside organizations, together with the software and advisory services that support them. The geographic scope is global. Reporting standards are discussed with reference to IFRS Accounting Standards, which apply in jurisdictions that require or permit them. The reporting period is the latest available data in the sources reviewed.

The main segments are in-house finance teams (corporate finance, financial planning and analysis, controllership and treasury), specialist FP&A and modeling software providers, and advisory firms that publish research or deliver modeling and reporting services. FP&A means financial planning and analysis. A financial model is a structured representation of financial statements and assumptions, usually built in spreadsheets or planning software.

Terminology is not consistent across sources. AI adoption is defined as fully deployed, actively used in core workflows, or prioritized, and these measures do not compare directly ⁴⁵². Market size estimates also differ by research provider and definition ⁶¹⁰. Where a figure is not directly comparable, this report says so.

2Market size, structure and value chain

A market research summary forecasts the global FP&A software market to grow from USD 3.88 billion to USD 13.43 billion over the forecast window, a 16.4% compound annual growth rate ⁶. These are forecasts from a secondary summary. The pack did not include the underlying method, and the base year is not stated precisely, so the figures are indicative rather than verified.

Another market research report estimates that the top five FP&A software players hold more than 50% of global market share, with North America above 50% of the global market ¹⁰. The same report notes growing demand from small and medium-sized businesses while large enterprises still account for most current share ¹⁰. These are estimates and the report base year is not exact.

The value chain runs from source data (ledger and operational systems) through assumption setting by business units, to the modeling layer (spreadsheets and FP&A platforms), and then to outputs such as budgets, forecasts, board packs and external disclosures. Finance leaders, FP&A leads, controllers and advisors are the main decision makers ¹. Revenue models for software vendors are not verified in the pack. Vendor pricing pages were the only pricing source, and they were not checked against independent sources. Revenue, margin and cost-to-income data for named vendors were not verified, so this report makes no margin comparison.

• Forecast FP&A software market size, end of forecast window 13.43USD billion Forecast Global, Forecast window stated by source [6]
• Forecast compound annual growth rate, FP&A software 16.4percent Forecast Global, Forecast window stated by source [6]
• Share of global FP&A market held by top five players More than 50percent Estimate Global, Latest available data (base year not exact) [10]

Market size and share figures come from secondary market research and are labeled as forecasts or estimates. They were not verified against company filings.

3Customers, demand and adoption

The main users are CFOs, FP&A leads, controllers and advisors ¹. A survey of 700 CFOs worldwide reports that predictive modeling is a priority for finance functions ². A separate survey of 902 finance executives across North America, Europe and Asia-Pacific identifies AI adoption, security and privacy, business transformation, cost optimization and cash management as the five priorities shaping the CFO agenda ³. Demand for modeling is therefore linked to a wider set of priorities than forecasting alone.

Adoption measures vary widely. The table below sets out the reported figures. Each row reflects a different definition and sample, so the figures should be read as indicators of direction rather than as a single market rate.

Key barriers in the sources are skills, data and infrastructure. One vendor survey of 170 finance professionals frames financial modeling as under strain and points to an infrastructure gap that AI is making harder to ignore ¹. Survey excerpts from a CFO survey also point to a focus on forecasting, optimization and reporting ². The pack does not contain verified pricing or purchasing criteria, so this report does not rank buyer criteria. Interpretation: the sources suggest buyers want faster scenario work and better data foundations, but the evidence for purchasing decisions is limited.

The table combines figures from four surveys with different samples, definitions and periods. Values are reported as stated and are not weighted or normalized.

4Competitive landscape and key players

The competitive landscape has three broad groups: specialist FP&A and modeling software providers, enterprise planning suites and in-house finance teams that build models in spreadsheets. Market research estimates that the top five FP&A software players hold more than 50% of global share, which points to concentration among specialist providers ¹⁰. The pack does not name the vendors in that group, and vendor-level market shares were not verified against company filings.

Advisory and research firms also appear in the sources. FTI Consulting, Protiviti, Deloitte and KPMG publish survey research on CFO priorities, AI use and reporting ²³⁴⁸. EY publishes implementation guidance on IFRS 18 ⁹. These firms compete for advisory work, but the pack does not include their modeling service revenues or pricing, so their market position cannot be compared with software vendors on a verified basis.

Business models differ. Software providers sell platforms that support planning and modeling. Advisory firms sell expertise and research. In-house teams carry the cost of building and maintaining models. Pricing, margins and cost-to-income figures were not verified for any provider. The pack notes that vendor pricing data is limited to marketing pages ¹⁶. Competitive pressure appears to come from small and medium-sized businesses entering the market and from AI features, but the sources do not quantify either effect ¹⁰. Comparable examples were limited in the pack, and this section does not rank providers.

Provider comparison is qualitative because verified financial and pricing data were not available.

5Technology, operations and workforce

AI is the main technology change in the sources. Deloitte reports 63% of finance leaders have fully deployed AI solutions ⁴. CFO Connect reports 17% of finance teams are actively using AI in core workflows ⁵. The gap suggests that tools are available but are not yet embedded in core processes for most teams. The sources do not measure productivity gains, so the effect of AI on modeling speed or accuracy is not established.

Operating practice is shaped by data infrastructure. The vendor report on modeling practice frames the field as under strain and points to an infrastructure gap ¹. Protiviti lists security and privacy among the five CFO priorities, which implies that model data governance will matter as AI use grows ³. Interpretation: model controls, version management and data access rules are likely to become more important as AI tools are added to planning workflows.

Workforce change is the other constraint. A CQF Institute survey of 135 quantitative finance professionals found 76% say their preparation did not cover the AI skills they need ⁵. Deloitte reports 64% of respondents plan to add more technical skills to their finance functions over the forecast window ⁴. Talent supply data by country was not found. Business model change is therefore likely to depend on how quickly teams can build technical skills alongside traditional modeling practice.

Workforce and adoption figures are self-reported survey results and are not verified against payroll or labor market data.

6Regulation, standards, risk and sustainability

The main reporting rule is IFRS 18, Presentation and Disclosure in Financial Statements, which the IASB issued in place of IAS 1 ⁷. It is binding for entities that apply IFRS Accounting Standards in jurisdictions where those standards are required or permitted. Earlier application is permitted ⁷. The pack does not show which jurisdictions have adopted IFRS 18, so the binding scope should be checked against local adoption status. Jurisdiction: IFRS jurisdictions, with no national regulator data retrieved.

IFRS 18 requires income and expenses to be classified into five categories and introduces two new mandatory subtotals ⁹. Management-defined performance measures must be disclosed in a single note with a reconciliation to the nearest IFRS subtotal ⁸. Comparative period information must also be presented under IFRS 18, so entities need to plan the transition ⁹. Many companies will see significant changes in their income statement, depending on current presentation ⁸. These are standard requirements, not advice.

Risk exposures in modeling include model errors, weak data controls and security and privacy failures ³. Fraud, default and loss-rate indicators specific to corporate finance and financial modeling were not found in the retrieved sources, so this report does not quantify those risks. Sustainability and social factors are not covered by the pack. Ethics and AI governance are relevant to model use, but the pack contains no regulatory guidance on AI in financial modeling. Proposed rules and voluntary guidance on these topics were not retrieved. This section is general information and not legal, audit or engineering advice.

Regulatory description is limited to IFRS 18 and related guidance. Jurisdiction-specific regulator filings were not retrieved.

7Challenges, opportunities and case examples

The main constraints are the AI adoption gap, skills shortfalls and infrastructure weaknesses ⁵¹. IFRS 18 adds transition work for reporting teams ⁹. The main opportunities are the demand for predictive and scenario modeling ², the growing small and medium-sized business segment ¹⁰ and the forecast expansion of FP&A software ⁶. The forecast opportunity is secondary and needs verification.

Case example one: Kaleidoscope's survey of 170 finance professionals, including CFOs, FP&A leads, controllers and advisors, examines how they build financial models today ¹. Its finding that the infrastructure gap is becoming harder to ignore shows where practical improvement may be needed. Case example two: EY's roadmap on IFRS 18 sets out the classification changes and transition planning that reporting teams face ⁹. Case example three: KPMG's guidance explains that management-defined measures must be reconciled in a single note ⁸.

Comparable company-level data was limited. The pack does not include vendor revenues, customer counts or case outcomes, so these examples illustrate practice and guidance rather than measured performance. The examples are from publishers, not independent audits of modeling quality.

Examples are drawn from survey and guidance publications in the pack. Company performance outcomes were not available.

8Outlook and strategic implications

In the near term, the sources point to continued investment in predictive and scenario modeling, with AI tools expanding faster than core workflow adoption ²⁵. If the forecast growth in FP&A software holds, demand for modeling tools will rise, but that forecast is secondary and unverified ⁶. Adoption measures are likely to diverge across organizations, with large enterprises leading current share ¹⁰.

Medium-term uncertainty centers on skills, data governance and reporting change. Planned skills investment ⁴ and the reported skills gap ⁵ point in different directions, and the outcome depends on execution. IFRS 18 transition will require reporting and modeling teams to align measures and subtotals ⁹⁸.

Practical implications differ by stakeholder. Finance leaders should review model infrastructure and data controls before scaling AI use ¹³. Software providers should document evidence for vendor claims, since pricing and performance data remain unverified. Advisory firms and auditors should plan for IFRS 18 comparatives ⁹. Graduates and employers should note the reported gap in technical preparation ⁵. These are interpretations of the sources, not forecasts from them.

Outlook is interpretive. It does not include quantified scenarios because verified market, margin and adoption series were not available.

9Conclusion

Corporate finance and financial modeling is shifting toward predictive, scenario-based and AI-assisted work, but adoption in core workflows remains uneven ⁵⁴. The most defensible takeaways are that skills and data infrastructure are the main constraints, and that IFRS 18 will change how modeled results are presented and reconciled ⁹⁸. Market growth figures remain unverified ⁶.

How this was built

Sources

1. 1

   The State of Financial Modeling & Planning

   Kaleidoscope Vendor report

   kaleidoscope.com
2. 2

   Global CFO Survey Report

   FTI Consulting Vendor report

   fticonsulting.com
3. 3

   Global Finance Trends Survey (Synchronize)

   Protiviti Vendor report

   protiviti.com
4. 4

   Finance Trends: Navigating the expanded scope of finance

   Deloitte Company report

   deloitte.com
5. 5

   The State of AI in Finance (as cited in CFO Connect event recap)

   CFO Connect Industry association

   cfoconnect.eu
6. 6

   FP&A software market size forecast (Financial Market Research summary)

   Financial Market Research Market research

   financemarketresearch.com
7. 7

   IFRS 18 Presentation and Disclosure in Financial Statements

   IFRS Foundation (IASB) Standard

   ifrs.org
8. 8

   IFRS 18 - Presentation and disclosure in the financial statements

   KPMG Company report

   kpmg.com
9. 9

   Roadmap to IFRS 18: Presentation and Disclosure in Financial Statements

   EY Company report

   ey.com
10. 10

    FP&A Software Size, Share, and Growth Report: Analysis and Forecast

    Data Insights Market Market research

    datainsightsmarket.com