UK CFOs show rising AI optimism but keep wallets closed amid economic uncertainty

UK finance chiefs are warming to AI, even as they keep spending in check

Deloitte's latest quarterly survey finds 73% of large-company CFOs optimistic about AI, up from 39% two years ago. Their wallets have not moved as fast. Nearly three-quarters of the finance chiefs at Britain's largest companies now say they are optimistic that artificial intelligence will improve business performance, a striking figure from a group not given to exuberance. In Deloitte's latest quarterly UK CFO Survey, 73% expressed that optimism, up from 59% at the end of 2025 and just 39% two years earlier. The rise arrives as the corporate case for AI is being audited rather than assumed. McKinsey's recent conclusion that the productivity payoff is real but conditional captures the mood among finance leaders, who tend to be the people eventually asked to show where the money went. Deloitte polled 58 CFOs between 1 and 13 July, most of them from FTSE-listed or large private companies. Their warming view of AI sits inside a broader thaw in the anxieties that have shadowed the survey for two years, though the thaw is uneven. Concern about geopolitical risk fell to 68 on the survey's 0-to-100 scale, down from 79 at the start of 2026. Worry about energy prices and supply disruption eased to 60 from 70 in the first quarter, a retreat that tracked the calming of tensions in the Middle East over the summer. The shift stands out because business confidence itself had sunk to a six-year low earlier in 2026, weighed down by geopolitics and doubts about the UK's growth prospects. Against that backdrop, the steady climb in AI sentiment is one of the few lines on the survey moving decisively upward, and it has now doubled in two years while most other measures have gone sideways or fallen. The optimism still carries caveats, and CFOs were careful to draw them. Concern about UK competitiveness and domestic productivity barely shifted, holding around 63, and research showing that the time AI frees up is often quietly wasted helps explain why belief and measurable return remain separate columns on the ledger. Debapratim De, who became Deloitte UK's chief economist in June, framed the numbers as continuity rather than a pivot. "CFOs continue to prioritise cost reduction and cash control in this environment," he said, a line that has held across several quarters of the survey. That instinct shapes how the enthusiasm turns into spending, or does not. An earlier edition of the survey found 96% of CFOs expect UK companies to raise technology investment over the next five years, and 77% expect that spending to lift productivity and growth, yet few anticipate much of a gain within the next 12 months. Where the money does go, finance leaders have consistently favoured AI applications that cut costs and streamline operations over the customer-facing bets that dominate the marketing around the technology. The mismatch between conviction and near-term payoff is not confined to finance departments. A BCG survey this year found most chief executives think their own boards are rushing AI transformation, a sign that the gap between boardroom appetite and operational result runs the length of the C-suite. Risk appetite, the survey's gauge of whether now is a good time to take more onto the balance sheet, has stayed subdued and well below its longer-run average. Finance chiefs describe a defensive stance, favouring cost control and cash over expansion, even as they grow more curious about what AI might eventually deliver. Optimism, in other words, has not yet translated into a willingness to bet the balance sheet on it. The direction, at least, matches what Britain has been trying to cultivate. The country's AI startups are now valued at roughly $256bn, and CFOs warming to the technology gives that supply-side ambition a demand side to lean on. Deloitte fields the survey every quarter, and the next reading will show whether 73% is a ceiling or a staging post. For now, the people who sign the cheques are more willing to believe in AI than to spend as though they already do.

UK chief financial officers turn more hopeful about AI

LONDON, July 20 (Reuters) - The finance bosses at many of Britain's biggest companies are more optimistic about the impact of artificial intelligence on their businesses and a bit less worried about risks from geopolitics, according to a report published on Monday. The survey of UK chief financial officers by accountancy firm Deloitte found 73% were optimistic about AI improving their businesses' performance, up from 59% at the end of last year and 39% two years ago. The survey also showed: o The average rating on a scale of 0-100 about geopolitical concerns fell to 68 from 79 at the start of 2026 o Worries about poor productivity and weak competitiveness in the UK economy were little changed at 63 o Concerns about higher energy prices or disruption to energy services fell to 60 from 70 in the first quarter of 2026 o "The global economy has so far weathered the shock from the conflict in Iran better than many had feared. However, concerns over geopolitics and domestic competitiveness remain elevated. CFOs continue to prioritise cost reduction and cash control in this environment," Deloitte UK Chief Economist Debapratim De said o 58 CFOS were surveyed between July 1 and July 13 (Writing by William Schomberg; editing by David Milliken)