UK CFOs warm to AI as geopolitical risks ease
A new survey shows British finance chiefs are increasingly optimistic about artificial intelligence, even as persistent domestic competitiveness worries keep corporate strategies focused on cash conservation.
British finance chiefs are betting more heavily on artificial intelligence to drive corporate performance. A survey of UK chief financial officers found that 73% are now optimistic about AI's impact on their businesses, up sharply from 59% at the end of last year and just 39% two years ago.
For investors, this rapid shift in sentiment is a critical barometer. It indicates that large UK companies are likely transitioning from AI experimentation toward actual operational integration. If this confidence translates into concrete action, equity markets can expect to see AI-related capital expenditures climbing in future earnings cycles.
At the same time, the broader risk environment is showing signs of stabilisation. The average rating for geopolitical concerns fell to 68 on a 0-100 scale, down from 79 at the start of 2026. Fears surrounding energy prices and supply disruptions also receded, dropping to 60 from 70 in the first quarter of 2026.
"The global economy has so far weathered the shock from the conflict in Iran better than many had feared. However, concerns over geopolitics and domestic competitiveness remain elevated. CFOs continue to prioritise cost reduction and cash control in this environment," said Deloitte UK Chief Economist Debapratim De.
Despite the easing of external shocks, domestic structural issues continue to anchor the corporate mood. Concerns about poor productivity and weak competitiveness in the UK economy were little changed at 63. This persistent anxiety explains why the pivot toward AI is not yet accompanied by aggressive investment.
Instead, finance leaders are balancing long-term technological optimism with short-term defensive positioning. The immediate focus remains on protecting margins and hoarding cash rather than chasing growth.
Such a cautious approach limits the risk of capital destruction during uncertain times. However, it also suggests that the macroeconomic benefits of AI adoption will take time to materialise. Deloitte surveyed 58 CFOs between July 1 and July 13.
