Driving Efficiency and Innovation: The Deloitte Approach to AI-Powered Productivity

Deloitte’s Latest UK CFO Survey Shows Optimism in Technology Investment

Deloitte’s most recent UK CFO Survey reveals a positive outlook for large UK businesses, with a particular emphasis on technology investment, especially in Artificial Intelligence (AI). The survey indicates that despite lingering macroeconomic and geopolitical risks, boards are increasingly focusing on digital capabilities as a key driver of productivity and growth in the medium term.

Key Findings on Technology Investment

One of the most significant findings from the survey is the overwhelming expectation for increased technology investment in the next five years. A staggering 96% of CFOs anticipate a rise in technology spending, with 77% foreseeing improvements in productivity and overall business performance. This shift signifies a departure from viewing digital spend as optional and cyclical to treating it as a structural necessity, akin to previous phases of industrial capital investment.

The survey places a spotlight on Artificial Intelligence, which has become a focal point for CFO sentiment. The number of CFOs expressing increased optimism about AI’s potential to enhance organizational performance has surged to 59%, up from 39% in Q3 2024. This shift indicates a significant move towards mainstream financial confidence in AI, without a corresponding increase in risk appetite, which remains subdued at 15%. This balance between confidence in AI and cautious risk-taking suggests a need for tightly controlled and well-defined AI initiatives.

Role of the CFO in Technology Governance

The survey underscores the evolving role of CFOs as stewards of technology, rather than passive recipients of IT budgets. CFOs are now instrumental in shaping digital strategy, particularly in the realm of AI. The emphasis on productivity gains highlights a preference for AI applications that streamline processes and aid in financial forecasting, signaling a departure from solely focusing on customer-facing innovations.

Finance professionals are expected to scrutinize business cases rigorously, collaborate closely with IT teams, and translate technical capabilities into tangible financial outcomes. Despite the positive sentiment surrounding technology investment, the survey also reveals constraints such as lingering negative business confidence and a cautious approach towards capital expenditure.

Challenges and Opportunities in the External Environment

External uncertainty remains a notable concern, with a significant percentage of CFOs expressing high levels of uncertainty about the future. Geopolitical risks continue to dominate the landscape, alongside concerns about UK competitiveness and productivity. The survey highlights the importance of systems resilience, data security, energy efficiency, and supply-chain visibility in the context of AI adoption.

A key takeaway from the survey is the recognition of the human dimension in technology adoption. Deloitte acknowledges the essential role of combining technology with human skills and the imperative to upskill workforces. This aligns with the overarching theme of cautious optimism, where CFOs are willing to invest in technology but understand the importance of integrating change management, training, and governance into digital initiatives.

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