63% of CFOs to Boost IT and Digital Transformation Budgets this Year
- Sophie Smith
- Apr 22
- 2 min read
Sixty-three percent of Chief Financial Officers (CFOs) increase spending on IT and digital transformation, according to Grant Thornton's Q1 2025 CFO survey. Amid economic uncertainty, this shift of focus to technology underscores a strategic pivot towards leveraging technology to navigate economic headwinds.​
Boost in IT and Digital Transformation Budgets
Despite a decline in economic optimism, with only 47% of CFOs expressing confidence in the U.S. economy—a 21-percentage-point drop from the previous quarter—there is a marked increase in technology investments.
The emphasis on digital transformation stems from its potential to enhance operational efficiency, reduce costs, and improve customer experiences. Technology offers tools for better scenario planning and adaptability in the face of challenges such as tariffs and labor shortages. Paul Melville, National Managing Principal of CFO Advisory Services at Grant Thornton, highlights that digital transformation enables proactive management of changing environments, aiding in cost optimization and operational efficiency.
Prioritizing Digital Transformation
CFOs are not only increasing budgets but also prioritizing comprehensive digital overhauls. While many organizations are undertaking system upgrades, 35% are engaging in full-scale digital transformations. Customer experience is a significant driver, with 71% of CFOs considering it a major factor in digital transformation decisions. The adoption of generative AI for customer relationship management has also seen a substantial rise, reaching 64%—a 19-percentage-point increase over six months.
Digital Transformation Benefits
Investing in digital transformation yields several benefits:
Enhanced Operational Efficiency – Automation and advanced analytics streamline processes, reducing manual workloads and errors.​
Improved Customer Experience – Digital tools enable personalized and responsive customer interactions, fostering loyalty and satisfaction.​
Cost Optimization – Technology facilitates better resource allocation and identifies areas for cost savings.​
Data-Driven Decision Making – Access to real-time data supports informed strategic planning and agility in response to market changes.
Even as economic optimism wanes, CFOs demonstrate resilience by focusing on long-term strategic investments. While confidence in meeting supply chain, labor, and cost control goals has declined, 78% of CFOs still anticipate net profit growth in the coming year. This optimism is fueled by a commitment to technology modernization as a means to navigate current challenges and position their organizations for future success.
CFOs' Resilience Amid the Turmoil
The current economic turmoil presents numerous challenges, yet CFOs proactively invest in digital transformation to build resilience and drive growth. By prioritizing technology, finance leaders aim to enhance operational efficiency, improve customer experiences, and achieve strategic objectives. As organizations adapt to evolving market conditions, digital transformation is critical to sustainable success.