UK CFOs Embrace AI Despite Lingering Global Risks

Artificial intelligence is rapidly shifting from an experimental technology to a core driver of corporate strategy, with UK finance leaders expressing their strongest confidence yet that AI will improve business performance even as geopolitical uncertainty continues to dominate the risk landscape.

Deloitte's latest quarterly survey of chief financial officers found that optimism around AI has increased markedly over the past year.

Nearly three quarters of respondents said they are now more optimistic about AI's impact on their organizations than they were 12 months ago, representing a significant increase from previous surveys as businesses move from pilot projects to wider deployment.

The findings suggest AI investment is becoming a long-term strategic priority rather than a short-term technology initiative.

Almost every finance leader surveyed expects investment in digital technology and assets to increase over the next five years, while the overwhelming majority also anticipate higher spending during the next 12 months.

That investment is expected to translate into tangible business benefits. More than three quarters of respondents believe AI and digital technologies will deliver stronger productivity and improved business performance over the next five years.

Half also expect measurable productivity improvements within the coming year as deployment programs mature across corporate Britain.

Debapratim De, chief economist at Deloitte UK, said the broader economic backdrop has also become more supportive.

"The global economy has, so far, weathered the shock from the conflict in Iran better than many had feared," he said. "Corporate sentiment is responding to this relative resilience."

The survey found that perceptions of external uncertainty have eased significantly.

Fewer than half of finance leaders now regard financial and economic uncertainty as high or very high, placing current sentiment below the post-pandemic average and well beneath the elevated levels recorded following Russia's invasion of Ukraine in 2022.

Improving confidence has also strengthened corporate risk appetite, although executives remain cautious about several major threats.

Geopolitics once again ranked as the most significant external risk facing businesses, marking the sixteenth time in the past eighteen quarters that it has occupied the top position.

Although concern has moderated since the beginning of the year, finance leaders continue to regard international instability, trade tensions and political uncertainty as the greatest challenges confronting long-term planning.

Domestic economic performance remains another major concern. Weak productivity and declining competitiveness within the UK economy ranked as the second-largest external risk, while higher energy prices and potential disruption to energy supplies also featured prominently despite easing from earlier levels.

De said those risks continue to influence corporate priorities despite improving confidence.

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

The survey also highlights how artificial intelligence is beginning to reshape workforce planning.

Cost control emerged as the single largest factor reducing graduate recruitment both over the past year and for the year ahead.

However, finance leaders increasingly expect AI to influence hiring decisions as organizations automate more routine activities. The growing use of outsourcing also continues to dampen demand for graduate recruitment.

The findings suggest companies are becoming more selective in workforce expansion while directing a larger proportion of investment toward technology that can enhance efficiency and support long-term productivity growth.

Darren Graves, chief executive of Deloitte UK, said the survey demonstrates increasing confidence that AI will become a meaningful source of competitive advantage.

The results indicate that UK businesses are entering the second half of 2026 with greater confidence than earlier in the year. Yet while AI is increasingly viewed as a catalyst for stronger performance, finance leaders continue to balance technology investment with careful cost management as geopolitical uncertainty and domestic economic challenges remain firmly on the corporate agenda.