CFOs lean in on tech as market pressure mounts

Even as economic confidence weakens sharply, finance leaders are intensely focused on increasing technology investment.

The urgency to invest, paired with declining confidence in execution, is revealed in Grant Thornton’s 2026 Q2 CFO survey data and reflects finance leaders performing a delicate balancing act in challenging economic conditions.

Economic confidence deteriorated sharply in the survey of 232 finance leaders that was in the field from April 28 to May 11. Pessimism rose as rising oil prices — driven by the outbreak of war in Iran and the closure of the Strait of Hormuz — added to an already uncertain environment.

Only 37% of the 232 finance leaders surveyed report an optimistic outlook for the U.S. economy, marking the lowest level in 20 quarters. Pessimists (40%) now outnumber optimists, and other key indicators point to continued strain:

• Confidence in meeting supply chain needs fell significantly, from 58% to 43%, while supply chain pressures have intensified as a top priority for 36% of finance leaders, up from 24% last quarter.
• Cost optimization rose sharply as a priority, with 87% planning cost reduction initiatives, up from 72% in Q1.
• Confidence in achieving cost control goals remains weak, with just 42% of leaders expressing confidence, down from 51% last quarter.

“Tariff uncertainty is creating challenges with supply chains, and the oil supply and war created a lot of the economic uncertainty and pessimism that we’ve seen,” said Grant Thornton Tax Solutions, Quality & Risk Leader Dana Lance.

Finance leaders are operating in a volatile environment shaped by shifting trade policy, inflation and geopolitical disruption.

Confidence and optimism fell sharply in Q1 and Q2 of 2025 as new tariffs were imposed, then turned much more positive from Q3 of last year through Q1 of 2026 as tariff turbulence decreased somewhat and the business-friendly “One Big Beautiful Bill” tax legislation was passed.

Now pessimism has returned along with higher inflation rates, and finance leaders are concerned:

• 67% expected inflation to increase in the next 12 months, with 18% bracing for a significant increase
• 67% say energy security and commodity supply disruptions will have at least a moderate effect on their business over the next 12 months
• About two-thirds of organizations expect at least a moderate effect from tariffs and trade policy shifts as well as supply chain and logistics disruptions tied to geopolitics.

The 67% of finance leaders increasing IT spending are funding initiatives designed to drive competitive advantage, even as those investments add to an already heavy cost base.

“Although companies are starting to see the power of AI, they’re also starting to understand the cost requirements that come along with it,” Lance said.

These investments are not consistently delivering results because many organizations have governance over risk and compliance but lack governance around value creation.

Without a metrics-driven process to evaluate AI initiatives, organizations risk continued investment in underperforming use cases.

“When performance doesn’t meet criteria at each stage gate, leaders need to make decisions based on the metrics, not their emotions,” Desmond said.

CFOs who enforce disciplined prioritization will separate investment from value.

One area showing strong AI returns is FP&A. AI tools are improving forecasting by integrating external variables into scenario modeling. AI is incorporating trends in commodity pricing, inflation, GDP and many other factors into business planning.

“These tools allow corporations to forecast more quickly and accurately,” Hennessey said.

Meanwhile, AI-driven demand is reshaping industries and capital allocation. Construction, manufacturing and energy companies are seeing growth tied to data center expansion. Professional services firms are supporting clients’ AI adoption in all industries, as Grant Thornton’s AI Impact Survey shows that 97% of organizations are piloting or scaling AI or have fully integrated AI into their operations.

The shift is influencing how capital is deployed, including in M&A strategy.

“Access to capital driven by AI projects is leading to consolidation of emerging companies and in the middle market where these investments can be monetized,” Desmond said.

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Nearly half (42%) of finance leaders expect their organization’s M&A activity to increase over the next 12 months, compared with just 6% who expect their M&A activity to decrease.

But just 11% expect significant increases in M&A activity, and after a few years of low M&A activity, the market favors targeted deals with clear value creation objectives, not broad expansion.

Successful CFOs understand how to overcome adversity. The following strategies can help them use their personal resilience to navigate a challenging economy:

Strengthen pricing discipline, but treat it as one lever within a broader strategy: CFOs are finding that price increases rarely offset inflation one-to-one, so they should build a coordinated approach that combines selective pricing, cost control and technology-enabled efficiency.

Address execution risk by improving organizational readiness for speed: Technology enables faster innovation, yet control environments, governance and processes often lag. Invest in strengthening internal controls, risk management and reporting capabilities alongside digital initiatives.

Ensure cost containment actions are sustainable: With cost reduction activity increasing sharply, CFOs must distinguish between short-term savings and structural efficiency, avoiding actions that weaken operational resilience or create future margin volatility.

Treat cybersecurity and data privacy as core business enablers: As AI and digital platforms expand, organizations increase exposure to cyber threats and regulatory complexity. Integrate security and privacy into product development, data strategy and vendor management to reduce risk and support innovation.

Build change management into every technology investment: Don’t underestimate change management’s role in delivering value. Establish clear ownership, adoption milestones and communication plans alongside implementation, and align incentives and training so teams adopt new tools effectively.

Expand hedging strategies beyond traditional financial instruments: Combine commodity hedges with operational and structural approaches, such as geographic diversification, supply chain flexibility and natural offsets within the business. CFOs who coordinate financial and operational hedging can manage volatility better.

Scale the workforce with flexibility rather than fixed commitments: In volatile conditions, CFOs can preserve resilience by using temporary labor, outsourcing or hybrid staffing models to flex capacity up or down. This approach supports growth when needed while avoiding disruptive cost reductions later. Read more about how outsourcing can improve M&A value creation.

Use M&A strategically to drive profitability and cost optimization: In the current environment, many organizations are pursuing smaller, targeted deals that enhance efficiency rather than large transformational acquisitions. Focus on opportunities that reduce cost to serve, improve margins or strengthen operational capabilities.

Broaden access to specialized talent and capabilities: As organizations pursue AI adoption, cost optimization, and growth simultaneously, access to specialized talent is becoming increasingly important. Shared services and outsourcing are gaining momentum as a way to balance cost, talent, and agility while reducing execution risk and accelerating transformation initiatives. 

See our AI resources for more on how leaders are using tech innovation to meet today's business challenges.