In the newest issue of Dengeki PlayStation, Tetsuya Nomura was interviewed about the upcoming World of Final Fantasy, Kingdom Hearts 2.8 release, and also shared some info concerning KHIII and the Final Fantasy VII Remake.

Quote Originally Posted by Dengeki PlayStation Interviewer and Tetsuya Nomura
Finally, please tell us more about the Final Fantasy VII Remake that has caught the world’s attention.
Nomura: If it had past materials like Kingdom Hearts, the basics would have been easy to understand, and the staff can understand the hurdles we’ve had to overcome, but at any rate, the battles in Final Fantasy VII have greatly changed from the original, since they’re something with more action in them. The next time I release information about Final Fantasy VII Remake, I think that I’ll definitely have to explain the specifics of what the battle system has become to the players. I think right now that nobody is really able to imagine a concrete battle, so I’m in the middle of coming up with steps that I can show and explain to people, “It’s this kind of battle.”

Sounds like you’re breaking your backs over remaking what was originally a command-based battle system into an action style battle system.
Nomura: We’ve heard a lot of Final Fantasy VII fans also say that they want to play the game with the original ATB style, but for the remake we’re proceeding toward an action-heavy style. Of course, we’ve added systems that future fans will be able to enjoy, so people who are bad at action-style battles, please don’t worry. For those who excel at action-style battles, we’re working to make this a system that’s different than what you’ve used before and can still enjoy. Recently, we checked the Guard Scorpion at the beginning of the game, and I think you’ll be satisfied with the realism you’ll feel there.

2017 is also the 20th anniversary of Final Fantasy VII.
Nomura: Like with the 15th anniversary of Kingdom Hearts, I’m thinking I’d like to plan something or other. It’s just that, since we’ve been keeping busy with productions, including the game World of Final Fantasy that I showcased today, I don’t think I will be able to share any new news until after things calm down.

So the battle system is definitely more action game based than some visual gimmick with a command based interface like say FFXIII's system. Yet it also sounds like the system has a bit more going for it as well. At least the Guard Scorpion fight sounds like it may be pretty cool. It will be also interesting to see what Square has planned for the game's 20th Anniversary.

Source: KH13, Translation by Catherine Mueller (nichiei.translations@gmail.com)