CFO confidence in AI grows as firms plan digital investment despite geopolitical concerns

Debapratim De

The survey, conducted between 1 and 13 July, found that 73 per cent of chief financial officers are optimistic that AI will materially improve their businesses’ performance, up from 59 per cent in the fourth quarter of 2025 and 39 per cent in the third quarter of 2024.

Investment intentions also remain strong, with 93 per cent of respondents expecting spending on digital technology and assets to increase over the next 12 months. Looking further ahead, 96 per cent anticipate higher investment over the next five years.

More than three-quarters (78 per cent) of CFOs expect AI to deliver improved productivity and business performance over the next five years, while half believe productivity gains will begin to emerge within the next 12 months as AI deployment programmes mature.

The survey also pointed to a gradual easing in economic uncertainty. Fewer than half (47 per cent) of finance leaders now rate external financial and economic uncertainty as high or very high, below the post-pandemic average and significantly lower than levels recorded following Russia’s invasion of Ukraine in 2022.

Despite improving confidence, geopolitics remains the most significant external risk facing businesses, a position it has held in 16 of the past 18 quarters. The average risk score fell from 79 in the first quarter of 2026 to 68 in the second quarter.

Concerns over weak UK productivity and competitiveness ranked as the second-largest risk, while higher energy prices and potential disruption to energy supplies remained among the leading challenges, although concern over energy eased during the quarter.

Debapratim De, chief economist at Deloitte UK, said: “The global economy has, so far, weathered the shock from the conflict in Iran better than many had feared. Corporate sentiment is responding to this relative resilience.

“However, concerns over geopolitics and domestic competitiveness remain elevated. CFOs continue to prioritise cost reduction and cash control in this environment.”

Cost control was also identified as the biggest factor limiting graduate recruitment. A net 62 per cent of CFOs said wider business cost pressures had reduced graduate hiring over the past year, rising to a net 64 per cent who expect cost control to remain the main constraint over the next 12 months.

The growing use of AI and increased outsourcing were cited as the second and third biggest factors expected to reduce demand for graduate recruits over the coming year.

Darren Graves, Deloitte UK chief executive, said it was encouraging to see growing confidence in AI’s ability to improve productivity and business performance. He added that businesses would now be looking to the new government to set out plans to strengthen economic growth, improve competitiveness and reinforce the UK’s position as an attractive destination for investment.