British CFOs more optimistic that AI will boost their firms

[LONDON] More than half of British companies’ finance chiefs expect artificial intelligence (AI) to deliver a growth boost, in a sign of rising optimism over the technology’s potential to transform the economy.

Accountancy firm Deloitte found that 59 per cent of the United Kingdom’s chief financial officers (CFOs) expect AI to improve the performance of their own company, up sharply from 39 per cent when they were last asked in the third quarter of 2024.

While concerns linger over whether AI will trigger job losses, the technology has been hailed as a potential game-changer for weak economic growth rates, which have dogged the UK for years.

Bank of England governor Andrew Bailey has said that AI could emerge as a general purpose technology akin to growth-driving waves of innovation in the past, such as computers and the Internet.

“We know that technology was a big driver of the US GDP in 2025, and we see real potential in the year ahead, for AI to boost UK business performance and fuel growth,” said Richard Houston, chief executive at Deloitte UK.

Deloitte’s survey, covering Q4 of 2025, found that 96 per cent of CFOs expect rising investment in digital technology by UK firms over the next five years.

Aside from the potential of AI, however, business confidence remains subdued in the UK.

Deloitte’s poll and a separate survey by the Institute of Directors (IOD) showed that companies were still downbeat, despite some relief that tax hikes were not more severe in Chancellor of the Exchequer Rachel Reeves’ November Budget.

Deloitte said that business optimism picked up to a reading of negative 13 at the end of last year – in line with levels in early 2025. It measures the difference between CFOs that are more or less optimistic about their businesses’ financial prospects.

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The IOD’s survey found only a small improvement in sentiment following the Budget. Its economic confidence index rose to negative 66 in December, up from negative 73 the previous month.

“The December improvement still leaves confidence around the record lows reached in the first Covid lockdown, and after the last two Budgets,” said Anna Leach, chief economist at the IOD.

A separate business survey on Tuesday (Jan 6) showed a post-budget increase in economic activity that was smaller than initially thought. 

S&P Global’s purchasing managers’ index showed only a slight increase to 51.4 in December, from 51.2 the previous month, indicated a revised estimate.

The flash reading had suggested a stronger rebound to 52.1, with any reading above 50 signalling growth. BLOOMBERG