EY found that 31% of UK CFOs lead long-term investment decisions with uncertain or indirect returns. The study surveyed 170 CFOs and heads of finance at UK companies with annual global revenue of at least USD $1 billion.
The findings suggest finance chiefs have a limited leadership role in areas that often shape corporate strategy. While 40% of respondents said they play an active role in guiding investment decisions with long-term or uncertain returns, a further 26% said they provide input only when asked.
That pattern extends beyond investment decisions. Only 30% said they lead in shaping how strategic initiatives are assessed, including emerging and non-financial value drivers, while 39% said they play an active but non-leading role.
Investor communication showed a similar split. Just 21% said they lead in explaining how investment decisions and long-term priorities align with the value drivers most important to investors, compared with 43% who contribute without leading.
The research also examined how finance functions are viewed inside large organisations. Only 25% of respondents said finance is seen as a strategic partner in creating value or shaping business strategy, while 38% said it is viewed mainly as an enablement function for day-to-day operations, or as a stewardship and control function focused on compliance and cost discipline.
Respondents pointed to the reasons behind that perception. More than half, 52%, said technology investment has focused on efficiency rather than insight, while 40% cited limited diversity of experience in finance teams, including in data.
"While UK CFOs are closely involved in investment decisions, relatively few are leading their organisation's thinking on long-term investments at an uncertain time when strategic choices about resilience, transformation and growth arguably matter most. The limited maturity of AI across UK finance teams compounds this challenge, restricting their ability to deliver predictive insight and support decisions that look beyond short-term performance," Ben Castell, UK Finance Transformation Partner at EY, said.
"Market volatility and rapid advances in AI present CFOs with an opportunity to redefine finance as a strategic business partner and exert greater influence. This will require investment in AI-enabled tools that deliver insight, not just efficiency, alongside broader skills and experience within teams. The CFOs who get this right will be better equipped to shape long-term investment decisions and guide their organisations through uncertainty."
AI adoption
The study found that AI remains in its early stages across many finance teams. More than half of respondents (51%) said their organisation is still developing AI readiness and has not yet applied the technology at scale in practice.
Another 25% said their finance team is at a functional stage, with data and tools in place but use still focused on optimisation. Only 16% described their finance function as advanced, and just 8% said AI insights are fully integrated into finance operations and decision-making.
The survey revealed a gap between large and small businesses. Among respondents from companies with more than USD $10 billion in annual global revenue, 43% said their finance team is at an advanced or leading stage of AI adoption, compared with 12% at organisations with less than USD $10 billion in revenue.
Even so, enthusiasm for AI in finance processes was measured. Fewer than a quarter of respondents said the technology held very high potential across their finance work.
Financial forecasting was seen as offering the greatest opportunity, with 32% citing high potential and 24% very high potential. Fraud detection followed, with 41% reporting high potential and 14% very high potential. Risk assessment scored 37% high and 14% very high, while data analysis was rated 33% high and 16% very high.
Barriers
Data quality and the risk of bias were identified as the main barriers to securing investment in new AI tools for finance teams. Some 35% of respondents described this as a significant challenge, and a further 24% called it a very significant challenge.
Skills and resourcing were also cited as constraints. Around 31% said a lack of skills, resources or capacity within finance teams makes it difficult to make full use of AI investment.
Building the case for spending was another obstacle. About 32% said it is hard to make a compelling business case because the benefits of AI are often long-term, indirect or difficult to quantify.
Despite those concerns, respondents reported stronger expectations for AI use across the wider business. Some 81% said they expect new AI-enabled business models to feature to a significant or moderate extent in their organisation over the next 12 months, while 77% said the same about fast decision-making supported by real-time data and analytics.
Many also linked technology spending to workforce development. Around 61% said productivity gains will depend on combining investment in technology with a focus on people and skills.
"AI is fundamentally changing how finance supports decision-making across the business. Rather than looking backwards, finance teams can now use advanced analytics to generate real-time, predictive insights that help organisations evaluate options, understand trade-offs and respond dynamically to changing market conditions. Those that harness this effectively will be better positioned to make smarter, faster decisions that drive long-term value," James McElhone, UK Value Performance Management Leader at EY, said.