UK Businesses Optimistic About AI Productivity, Risks Remain

Generally, You should be aware that large UK businesses are becoming increasingly optimistic about using technology, particularly artificial intelligence, to boost productivity and drive growth. Obviously, The latest Deloitte survey shows that while the outlook is positive, concerns about macro-economic and geopolitical risks still exist. Usually, You will find that digital spending is now viewed as a core strategic component, akin to capital investment in past industrial eras.

Survey Overview

Interestingly, The latest Deloitte survey reveals that an overwhelming majority of CFOs expect UK companies to increase technology investment over the next five years. Naturally, You can expect that this will lead to productivity and performance gains, with 77% of CFOs anticipating such gains. Clearly, This signals that digital spending is now a key part of business strategy.

Technology Investment Focus

Apparently, Confidence in AI has risen sharply, with the share of CFOs who are optimistic about AI’s ability to enhance performance growing to 59% from 39% in Q3 2024. Nevertheless, You should note that the survey shows a subdued risk appetite, indicating cautious implementation. Normally, This suggests that businesses are eager to invest in AI, but are also aware of the potential risks.

AI Optimism and Risk Appetite

Evidently, The CFO role is evolving from a mere consumer of IT budgets to a key driver of digital strategy, with emphasis on AI applications that automate processes and improve financial forecasting. Obviously, You can expect that finance teams will face tighter scrutiny of business cases and deeper involvement in translating technical capabilities into measurable financial outcomes. Generally, This will require CFOs to have a deeper understanding of technology and its applications.

Implications for Finance Leaders

Usually, Business confidence remains negative, with a net -13%, below its long-term average, and capital expenditure is a priority, but only 17% of CFOs view it as a strong priority. Apparently, This suggests that technology spending could be trimmed if projects are deemed speculative or misaligned with productivity goals. Naturally, You should be aware that CFOs will need to carefully evaluate investment opportunities and prioritize those that are likely to drive growth.

Clearly, About 38% of CFOs rate future uncertainty as high or very high, with geopolitics topping the risk list, followed by UK competitiveness and productivity. Obviously, You can expect that additional concerns, such as systems resilience, data security, energy efficiency, and supply-chain visibility, will also remain on the agenda. Generally, This will require businesses to be agile and adaptable in response to changing circumstances.

External Uncertainties

Naturally, Deloitte emphasizes that AI’s value hinges on blending technology with human skills and upskilling workforces, and while not quantified in the survey, this aligns with the broader pattern of cautious optimism. Apparently, You should note that CFOs are ready to invest in AI, but they do not assume technology alone will deliver results. Usually, This will require IT leaders to embed change management, training, governance, and oversight into digital programs.

Human Dimension of Technology Adoption

Generally, The Deloitte CFO Survey reveals a pragmatic shift toward technology-led productivity in UK businesses, with strong digital investment and growing AI confidence evident, yet caution persists regarding risk and an uncertain external environment. Obviously, You can expect that finance professionals will need to prioritize capital for initiatives that demonstrably improve performance, while IT staff can expect expanding opportunities paired with heightened accountability. Clearly, Digital ambition will be funded, provided it translates into credible, auditable business value.

Conclusion