New Report Suggests CFOs Upbeat on AI Investment as Risk Appetite Grows

UK chief financial officers are becoming more optimistic about the potential for artificial intelligence to improve business performance, even as overall confidence and risk appetite remain below long term averages, according to the latest Deloitte CFO survey.

The report found that 59 percent of finance chiefs at the UK’s largest businesses have become more optimistic over the past 12 months about AI’s ability to boost performance, up from 39 percent when last measured in the third quarter of 2024.

Almost all respondents – 96 percent – expect investment in digital technology and assets by UK companies to increase over the next five years.

The survey, conducted between December 2 and December 14, also showed that 77 percent of CFOs expect productivity growth and business performance to improve over the same period.

Deloitte said the findings point to technology, and AI in particular, as a central pillar of medium term growth strategies.

Richard Houston, senior partner and chief executive of Deloitte UK, said finance leaders were increasingly confident in the role technology could play.

“CFOs are significantly more positive about improving performance through deploying AI and remain upbeat about technology investment over the medium term,” he said, adding that unlocking the full value of AI would require investment in people and skills alongside technology.

Despite the brighter outlook on technology, risk appetite remains subdued. The proportion of CFOs who said it was a good time to take greater risk onto their balance sheet rose to 15 percent at the end of 2025, up from 12 percent in the previous quarter.

However, that figure remains well below the long run average of 25 percent.

Business optimism also improved from the lows seen in the third quarter, rising above levels recorded a year earlier and aligning with readings from March 2025.

Even so, overall confidence remains negative, with a net balance of minus 13 percent, indicating more CFOs are pessimistic than optimistic about their financial prospects.

More expansionary strategies continue to be a lower priority for many firms, although capital expenditure intentions are strengthening.

The share of CFOs who said capital spending was a strong priority rose to 17 percent, the highest level in two and a half years and slightly above the long term average of 15 percent.

Perceptions of external uncertainty eased modestly. The proportion of CFOs rating uncertainty as high or very high fell to 38 percent, down from 41 percent in the previous quarter and the lowest level since the third quarter of 2024.

Geopolitics remains the most significant external risk facing large UK businesses heading into 2026. CFOs rated geopolitical risk at 65, up from 62 in the previous quarter, marking the third consecutive year it has topped the survey’s risk rankings.

Concerns about UK competitiveness and productivity were the second highest rated risk, with a score of 62, the highest level since the question was first introduced in 2014.

Higher energy prices or disruption to energy supplies ranked third, although concern edged down slightly to 47 from 48 in September.

Ian Stewart, chief economist at Deloitte UK, said sentiment was improving but remained cautious.

“Business sentiment is subdued but more positive than a year ago,” he said. “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.”

The survey reflects responses from 55 CFOs and group finance directors, including leaders from FTSE 100 and FTSE 250 companies, representing a combined market value of £389 billion, around 14 percent of the UK quoted equity market.