UK CFOs Report Higher Confidence In AI Investment, Here’s Why

Recent data indicates a significant increase in the acceptance of artificial intelligence (AI) among financial leaders in the UK. According to a survey conducted by Deloitte from Tue, Dec 2 to Sun, Dec 14, 2024, 59% of chief financial officers (CFOs) from the UK’s largest companies have shown increased optimism about AI's potential to enhance organizational performance, compared to 39% in the previous year.

The survey, which assessed CFOs' perspectives on outlook, spending, and risk, highlights a marked improvement following a period of hesitance earlier in 2024. The initial reluctance was attributed to high costs and uncertainty surrounding new technologies.

Finance leaders primarily associate AI with immediate benefits such as improved data utilization, expedited reporting, and enhanced operational control, rather than long-term promises. This viewpoint is particularly prevalent among board members, reflecting increased confidence in AI's practical applications within finance functions.

The survey's findings indicate robust future investment in digital technology. Deloitte reports that 96% of CFOs anticipate increased financial commitments to digital technology and assets over the next five years, signaling sustained long-term investment.

Moreover, 77% of finance leaders expect improvements in productivity and business performance during this period, linking digital and AI tools directly to operational results rather than abstract innovation goals.

Capital expenditure is also gaining priority, with 17% of CFOs identifying it as a significant focus, the highest in two and a half years, slightly exceeding the long-term average of 15%. This shift suggests a preference for targeted investments that yield rapid returns, aligning with digital systems' promise of cost efficiency and operational control.

Deloitte's survey also reveals a slight increase in risk appetite among CFOs, with 15% now indicating a willingness to assume greater risks on their balance sheets, up from 12% in the previous quarter. However, this figure remains below the long-term average of 25%.

Business confidence has improved from the third quarter's low, with the latest readings matching levels from March 2025. Nevertheless, overall confidence remains negative at net minus 13% according to Deloitte's ongoing measure.

Uncertainty has decreased, with 38% of CFOs classifying it as high or very high, down from 41% in the previous quarter. This marks the lowest level since the third quarter of 2024, which stood at 31%.

Geopolitical concerns rank highest on risk agendas for 2026, with a rating of 65, up from 62 in the previous quarter. Concerns about UK competitiveness and productivity follow closely at 62, the highest since the question was first posed by Deloitte in 2014. Energy costs and supply risks are also noted, with a rating of 47, slightly down from 48 in September.

In summary, finance leaders are increasingly optimistic about AI investments while maintaining a cautious approach towards risk and expenditure.

Based on reporting by techround.co.uk.