A recent Gartner survey reveals that 77% of CFOs plan to increase their technology budgets in 2025, with nearly half (47%) planning hikes of 10% or more. This demonstrates the growing recognition of technology as a key driver for growth and operational efficiency, even amidst ongoing economic and geopolitical challenges. CFOs are prioritizing digital investments, particularly in sectors like retail and banking, where technology is essential for enhancing product quality and attracting technical talent. These investments are viewed as necessary to maintain competitiveness in an increasingly digital landscape. On the other hand, spending on employee compensation is declining. Only 61% of CFOs plan to increase compensation in 2025, down from 71% in 2024 and 86% in 2023.
Additionally, the percentage of CFOs planning compensation increases of 10% or more has fallen, reflecting a shift in focus toward strategic investments in technology to drive productivity. Randeep Rathindran, Distinguished VP of Research at Gartner, emphasized that technology investments are no longer optional. The rise of generative AI and digital tools is vital for driving innovation and efficiency. CFOs must collaborate closely with CIOs and other executives to ensure technology investments deliver maximum value. As technology spending continues to grow, CFOs must remain disciplined and mindful of the risks associated with rising attrition and disengagement. Effective collaboration across leadership teams will be crucial to unlocking the full potential of these digital investments and supporting long-term growth.
