UK CFOs upbeat on tech investment and potential for AI to boost productivity for year ahead
Deloitte’s latest survey of UK chief financial officers (CFOs) shows that 59% of the UK’s largest businesses have become more optimistic over the past 12 months on the potential for AI to boost the performance of their own organisation – up from 39% when last measured in the third quarter of 2024.
CFOs overwhelmingly (96%) expect to see a rise in investment in digital technology and assets by UK companies over the next five years. The survey – which took place between 2 and 14 December – also found the vast majority (77%) expect an increase in productivity growth and business performance over the same period.
Richard Houston, senior partner and chief executive of Deloitte UK, said: “CFOs are significantly more positive about improving performance through deploying AI and remain upbeat about technology investment over the medium term. We know technology was a big driver of US GDP in 2025 and we see real potential in the year ahead for AI to boost UK business performance and fuel growth. However, to realise the full value from AI, we must combine human skills with technology and upskill people, so nobody is left behind.”
Risk appetite increases with reduction in pessimism
Risk appetite edged up at the end of 2025, with 15% of CFOs saying that it was a good time to take greater risk onto their balance sheet. This is up 12% from the last quarter, though well below the long-run average of 25%.
Business optimism in Q4 also picked up from the Q3 low, more positive than Q4 2024 and in line with levels that were seen in March 2025. Nonetheless, the reading on business confidence remains negative at net -13%, below its long-run average.
More expansionary strategies remained a lesser priority although the proportion of CFOs reporting that capital expenditure is a strong priority, rose to a two-and-a-half-year high of 17% and is now running marginally above the long-term average of 15%.
Uncertainty declines but geopolitical concerns remain
The number of CFOs who rated the level of external uncertainty as high or very high fell this quarter to 38%, compared to the last quarter at 41%. This is the lowest level since Q3 of 2024 (31%).
Geopolitics remains the top external risk for finance chiefs of large UK businesses heading into 2026 – as it has in the previous three years, with a rating of 65 compared to 62 in the previous quarter.
The second highest rated risk relates to UK competitiveness and productivity with a rating of 62, which remains at the highest level since the question was first asked in late 2014. The risk of higher energy prices or disruption to energy supplies rounds out CFOs’ top three risks for 2026, however the rating has marginally fallen this quarter to 47, from 48 in September.
Ian Stewart, chief economist at Deloitte UK, said: “Business sentiment is subdued but more positive than a year ago. While CFOs remain cautious about geopolitics and productivity, business confidence and risk appetite have ticked up from their autumn lows and perceptions of external uncertainty have edged lower.”