TLDR: A new report from Information Services Group (ISG) reveals that companies are rapidly shifting AI and generative AI (GenAI) features in finance and accounting outsourcing (FAO) from pilot programs to live production environments. This transition marks a significant evolution, repositioning FAO from a mere cost-saving measure to a strategic enabler for autonomous finance, with AI tackling complex tasks like anomaly detection, cash flow forecasting, and multi-step workflows.
STAMFORD, Conn. – September 25, 2025 – Enterprises are now actively deploying AI-based features from finance and accounting outsourcing (FAO) providers into live production, moving beyond initial pilot phases and realizing tangible business benefits. This significant shift is detailed in the 2025 ISG Provider Lens® global Finance and Accounting Outsourcing (FAO) Services report, published today by Information Services Group (ISG), a global AI-centered technology research and advisory firm.
The report highlights that since 2024, the application of AI, generative AI (GenAI), and advanced analytics by FAO providers has transitioned from proofs of concept to operational environments. This evolution is crucial as organizations increasingly embrace ‘autonomous finance,’ a paradigm where intelligent systems orchestrate workflows, allowing human experts to concentrate on high-value analysis and strategic decision-making.
Robert Stapleton, partner, Business Outsourcing Services, for ISG, emphasized this transformation, stating, “FAO is changing from a cost-saving tool to a strategic enabler.” He added that enterprises are now looking to providers to spearhead a comprehensive transformation of finance and accounting functions, rather than merely executing routine tasks.
AI and GenAI are being leveraged for a wide array of critical financial operations, including anomaly detection, complex reconciliations, and sophisticated cash flow forecasting. Furthermore, agentic AI is being deployed for autonomous, multi-step workflows in areas such as cash application and tax compliance, streamlining processes and enhancing accuracy.
Despite the rapid adoption, the report notes that providers are still navigating the challenge of aligning the pricing of agentic AI with its measurable benefits. Another key trend identified is the growing adoption of industry-specific AI models and vertical FAO platforms, as companies seek pre-configured solutions that promise quick value delivery. Providers are responding by rolling out tailored solutions for sectors including banking, financial services and insurance (BFSI), healthcare, manufacturing, and chemicals.
Gaurang Pagdi, analyst at ISG Provider Lens Research and lead author of the report, commented on the current market focus: “Companies seeking FAO providers are now focused on execution.”
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The ISG report recognized several industry leaders for their capabilities. Accenture, Capgemini, Cognizant, Deloitte, EXL, EY, Genpact, HCLTech, IBM, Infosys, TCS, Wipro, and WNS were named Leaders across all four quadrants of the report. KPMG was also identified as a Leader in one quadrant. Additionally, Auxis and Sutherland were designated as ‘Rising Stars,’ indicating their promising portfolios and high future potential in one quadrant each. Genpact received special recognition as the global ISG CX Star Performer for 2025 among FAO services providers.
