CFOs’ tech investments reach record levels

“Companies can’t afford to treat AI as optional. But investment alone isn’t enough. You need to show ROI.”

Paul Melville 

Chief Growth Officer
Grant Thornton Advisors LLC

“Companies can’t afford to treat AI as optional,” said Grant Thornton Chief Growth Officer Paul Melville. “But investment alone isn’t enough. You need to deliver ROI.”

Cost cuts decrease: AI spending is part of a broader shift, as CFOs are refraining from cost cuts more boldly than at any other time in the past five years. When given a detailed list of which costs they plan to cut, an eye-opening 28% said they don’t plan to cut any. Over 15 quarters, the previous high was 18%.

Compared with Q4 of last year, expectations for cuts finance leaders say they will make have declined sharply across several areas, including:

• Professional consulting support (52% last quarter, 32% now)
• Human capital expenses for headcount and compensation (43% last quarter, 29% now)
• Vendor or supplier costs (42% last quarter, 29% now)

Companies are investing to improve operational efficiency while enhancing the value they deliver to customers. Many technology investments are designed both to strengthen existing market differentiators and to introduce new sources of competitive advantage.

“Embedded in all this, we see companies balancing short-term profitability requirements with the long-term,” said Grant Thornton Audit Growth Leader Mike Desmond. “They have today’s costs and profitability pressures, but they’re also focused on the investments needed to drive value in the future.”

The slowing of expected reductions in human capital spending cuts aligns with other survey findings showing that CFOs do not broadly view AI investments as a catalyst for layoffs. Despite the workforce reductions announced by major tech companies in the past several months, just 29% of finance leaders said they expect potential layoffs over the next six months, tying a 15-quarter low.

Views on economy: CFO sentiment toward the U.S. economy remains mixed. Optimism dropped from 52% to 46%, pessimism fell from 31% to 25%, and neutral views of the economy grew from 17% to 29%. The survey was in the field for 14 days ending Feb. 19, one day before the Supreme Court ruled against the Trump administration’s use of tariffs under the International Emergency Economic Powers Act — and before other developments that changed the geopolitical landscape.

As they awaited that ruling amid ongoing tariff uncertainty, finance leaders were united in their sensitivity to consumers’ affordability challenges. Almost three-fourths (73%) said affordability concerns had affected their pricing strategies, and 65% said they have dynamic or segmented pricing models in at least the pilot stage as they work to balance margin protection with customer price sensitivity.

“Audit committee members and directors are focused on educating themselves on business opportunities related to AI while ensuring that governance and risk mitigation techniques are in place.”

Michael S. Desmond 

Audit Growth Leader, Grant Thornton LLP
Carolinas Market Managing Partner,
Grant Thornton Advisors LLC

Consulting plans: Our survey data shows that companies are turning to consultants to overcome these challenges. The 32% making consulting cost cuts in Q1 marked a 15-quarter low. This likely shows that companies are getting external help in their AI transformation programs.

Consultants are helping organizations better understand how to optimize technology investments and design control frameworks that manage the risks associated with AI adoption.

“Audit committee members and directors are focused on educating themselves on business opportunities related to AI while ensuring that governance and risk mitigation techniques are in place,” Desmond said.

“Outsourcing used to be something only large organizations pursued, but it is increasingly becoming the de facto business model across the board.”

Raul Vega 

CEO, Grant Thornton | Auxis Business Modernization & Outsourcing Services

This data spotlights a market shift, as organizations increasingly evaluate outsourcing not just as a cost lever but as a mechanism for modernizing operations and supporting broader transformation efforts. These expanded benefits are bringing more mid-market organizations to the table for outsourcing.

“Outsourcing used to be something only large organizations pursued, but it is increasingly becoming the de facto model across the board,” Vega said. “What’s changing is the reason why. Today, companies are turning to outsourcing to access specialized talent, support higher-complexity work and accelerate innovation — not simply to reduce costs.”

Location strategies are evolving alongside these priorities. While offshoring remains the most established delivery model, more organizations report evaluating nearshore locations for future operations (17%) than offshoring (13%). Nearshoring is also experiencing less pullback, with only 2% reducing nearshore operations compared with 7% scaling back offshore activity.  As organizations move beyond cost-driven outsourcing, they are placing greater emphasis on delivery models that provide real-time collaboration (61%) and a greater ability to support complex processes (95%) when deciding on an outsourcing location.  

Capabilities are growing: Meanwhile, the scope of outsourcing services continues to grow. While outsourcing services once handled primarily discrete tasks such as invoice processing, they are now supporting end-to-end accounting, collections, exceptions management and financial planning and analysis functions.

Advances in technology are also creating new opportunities to outsource compliance-related activities. “We’re seeing higher demand for outsourcing global tax compliance, and we expect continued growth in that area,” Lance said.

“It’s no longer time for wait-and-see, or to let someone else try it. There’s a greater understanding of AI’s capabilities now, and it’s time to take advantage of them.”

Dana Lance 

Tax Solutions, Quality & Risk Leader
Grant Thornton Advisors LLC

The data shows that CFOs are at an AI crossroads.

They need to get on the train, because many of their competitors have already boarded. The early adopters and fast followers are already comfortably in their seats, and even many of the laggards are having their tickets punched by the conductor.

“It’s no longer time for wait-and-see, or to let someone else try it,” Lance said. “There’s a greater understanding of AI’s capabilities now, and it’s time to take advantage of them.”

The most successful organizations are tying AI capabilities directly to business needs and measurable financial outcomes with clear ownership. For finance leaders in 2026, several priorities stand out:

• Fund growth initiatives while reinforcing the resilient infrastructure needed to support them.
• Align AI initiatives to clear financial owners and ROI milestones.
• Plan staffing strategies that support expected growth.
• Address data and integration gaps early. They remain the most-cited obstacles to adoption.
• Strengthen pricing analytics as affordability pressures increase.

CFOs are investing selectively and pragmatically with clear expectations for return. In doing so, they are building an AI foundation that supports current profitability goals and long-term growth ambitions.