TLDR: Information Services Group (ISG) has announced a comprehensive study revealing how 23 software providers are leveraging generative and agentic AI to fundamentally transform finance and accounting outsourcing (FAO). The upcoming ‘Finance and Accounting Outsourcing (FAO) Services’ report, slated for release in September 2025, will detail how AI is enabling new capabilities like autonomous workflows and intelligent exception handling, shifting FAO from a cost-efficiency role to a strategic partnership for enterprises.
STAMFORD, Conn. – Information Services Group (ISG), a leading global AI-centered technology research and advisory firm, is set to release a pivotal study in September 2025, titled ‘Finance and Accounting Outsourcing (FAO) Services’. This comprehensive ISG Provider Lens™ report will delve into how 23 software providers are harnessing the power of artificial intelligence to redefine financial reporting and accounting processes.
The study, initially announced on May 16, 2025, underscores a significant evolution in the FAO landscape. Enterprises are increasingly looking beyond traditional cost-saving measures, seeking FAO providers who can act as strategic, consultative partners. These partners are expected to possess a deep understanding of business contexts, enabling greater agility and smarter decision-making within financial operations.
At the heart of this transformation are advanced AI technologies, specifically generative AI (GenAI) and agentic AI. Jan Erik Aase, partner and global leader, ISG Provider Lens Research, emphasized the critical role of technological advancement: “As FAO evolves and extends its reach, technological advancement is more important than ever. GenAI and agentic AI allow service providers to introduce new capabilities, including autonomous workflows and intelligent exception handling. FAO is becoming a full-fledged partner to forward-thinking enterprises.”
The report will cover a broad spectrum of FAO services, including accounts payable, order to cash (O2C) operations, recording and reporting of financial results, tax compliance, and financial planning and analysis. ISG’s research team, comprising analysts Gaurang Pagdi, Sneha Jayanth, and Shilpashree N, has surveyed 48 FAO service providers globally to identify key trends and capabilities.
The study will categorize FAO services into four distinct quadrants:
Invoice to Pay (I2P): Focuses on providers managing the entire accounts payable lifecycle, from invoice receipt and validation to payment processing. These providers integrate AI and Machine Learning (ML) for efficient exception handling and real-time analytics to ensure compliance and support decision-making.
Order to Cash (O2C): Evaluates end-to-end O2C service providers handling functions such as accounts receivable management, credit risk assessment, invoice generation, and dispute resolution. Leading providers leverage automation, predictive analytics, and big data to achieve rapid order fulfillment and other benefits.
R2R and Tax Services: Covers providers assisting enterprises with financial closing, reporting, reconciliation, and indirect tax compliance. AI, automation, and analytics are employed to streamline operations, enhance accuracy, provide real-time insights, and ensure regulatory compliance.
Financial Planning & Analysis (FP&A): Assesses providers offering services like budgeting, forecasting, planning, and risk management. As strategic financial functions are increasingly outsourced, these providers deliver real-time insights crucial for identifying risks and opportunities.
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This upcoming report is expected to be an invaluable resource for enterprise buyers evaluating vendor relationships and new offerings, as well as for ISG advisors in recommending suitable providers to their clients.
