Technology is CFOs’ Top Investment Priority in the US

A new survey from Grant Thornton has shown that CFOs across the United States are prioritising investments in technology, sales and marketing for 2025.

The newly released Q3 2024 CFO Survey shows that 66% of finance leaders expect to increase their spending on IT and digital transformation in the next year.

This figure marks a 15-quarter high in the survey, demonstrating the shift towards technology across the finance industry. 

Paul Melville, National Managing Principal of CFO Advisory for Grant Thornton Advisors LLC, said: "CFOs understand that they need these technological capabilities to be competitive."

Other key priorities for CFOs in 2025 are sales and marketing. Over half (56%) of respondents say they expect to see their sales and marketing expenses increase in the next year and only 7% say they expect a decrease. 

The survey gathered insights from 230 senior finance leaders across the US.

The results further indicate growing adoption of generative AI (GenAI) among businesses. 

CFOs report using GenAI for customer relationship management (60%, up from 45% in Q1) and product development (58%, up from 35% in Q1).

CFOs confidence for 2025

Grant Thornton’s survey also reveals that despite economic and political challenges, 79% of CFOs expect net profit growth over the next 12 months, a 10-quarter high. 

However, confidence is declining in other key areas. The report shows a significant drop in CFOs' confidence regarding their ability to meet increased demand goals, falling 12 points to 51%. 

Confidence in meeting supply chain objectives also decreased, with only 53% of CFOs expressing assurance in this area.

Labour needs also remain a concern, with only 49% of surveyed CFOs expressing confidence in meeting these requirements.

Melville said: "Finance leaders' belief in their ability to drive profits at their organisations remains unshaken, even as their confidence in other key fundamentals tumbled in an unsettled environment. 

“CFOs believe they can push the right buttons to help their organisations thrive in the long term."

CFOs sentiments on meeting growth projections 

Despite the overall positive outlook on profit growth, only 45% of CFOs are confident of meeting growth projections, an 11-point decrease. 

Additionally, just 42% express confidence in meeting cost control goals, down 13 points from the previous quarter.

These findings suggest that while CFOs remain optimistic about their ability to generate profits, they are increasingly cautious about the broader economic environment and their capacity to navigate potential challenges in the coming year.

"CFOs are recognising the need to have differentiation in their products and services, and they're investing more in sales and marketing for those products as a proactive move to drive more growth and capture market spend," said Melville.

Election uncertainty impacts CFO planning

The survey's timing may have influenced results; it was conducted shortly after Joe Biden's withdrawal from the presidential race, during a period when the S&P 500 dropped 384 points and unemployment rose by 0.2%. 

The upcoming US presidential election in November is also influencing CFO decision-making. 

The survey found that 61% of respondents believe the election results could lead to changes in their business strategy. 

CFOs are particularly concerned about the election's impact on the overall economy, tax policy and regulatory policy.

As a result, CFOs are taking varied approaches to investment planning. Grant Thornton’s report states: "Nearly one-third (31%) are accelerating some investments in anticipation of the election, while 23% are holding off on some investments until after the election. 

“Meanwhile, 46% say the election will not affect their investment plans."

Despite the political uncertainty, Melville advises CFOs to focus on core business fundamentals: "You're still going to invest in AI to drive improvements through technology. You're still going to make sure your cybersecurity protections are strong.

“The business fundamentals like efficiency in the finance function and the basics for growing your business aren't going to change regardless of who is in the White House or the government."