Why CFOs are Prioritising Tech & Marketing Investments
Amongst global business, technology and digital transformation have become critical factors for companies seeking to maintain their competitive edge.
As organisations worldwide grapple with post-pandemic recovery, supply chain disruptions and the ongoing digital revolution, Chief Financial Officers (CFOs) are increasingly looking to leverage technology and boost marketing efforts to drive growth.
This shift in focus comes at an interesting time when businesses are navigating economic uncertainties and geopolitical tensions, forcing finance leaders to adapt their strategies for the future.
The technology industry, in particular, stands at the head of this transformation, with its innovations driving change across all sectors.
As companies in various industries seek to modernise their operations and enhance their digital capabilities, the tech sector is poised to benefit from increased investment and demand for its products and services.
According to a recent survey conducted by Grant Thornton, a leading audit, tax and advisory firm, CFOs across the US are prioritising investments in technology, sales and marketing for 2025.
Technology investment takes centre stage
Grant Thornton’s Q3 2024 CFO Survey reveals that 66% of finance leaders expect to increase their spending on IT and digital transformation in the next year, marking a 15-quarter high in the survey.
"CFOs understand that they need these technological capabilities to be competitive."
This surge in technology investment reflects the growing recognition among CFOs of the critical role that digital capabilities play in maintaining competitiveness.
Paul Melville, National Managing Principal of CFO Advisory for Grant Thornton Advisors LLC, emphasises that finance leaders understand the necessity of these technological capabilities to remain competitive in today's business environment.
Grant Thornton also highlights a significant increase in the adoption of Gen AI among businesses.
According to the survey, CFOs report using GenAI for customer relationship management (60%, up from 45% in Q1) and product development (58%, up from 35% in Q1).
Paul says: "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.”
This means that the rapid adoption of AI technologies is also indicating a growing trend towards automation and data-driven decision-making in finance and other business functions.
Sales and marketing prioritised amid economic uncertainty
Despite economic challenges, CFOs are also focusing on sales and marketing efforts.
Over half (56%) of respondents expect to see their sales and marketing expenses increase in the next year, with only 7% anticipating a decrease.
This emphasis on go-to-market strategies suggests that finance leaders are looking to drive revenue growth and capture market share in an increasingly competitive landscape.
The survey reveals mixed sentiments about the economic outlook among CFOs.
While 79% expect net profit growth over the next 12 months, a 10-quarter high, confidence is declining in other key areas.
Grant Thornton shows a significant drop in CFOs' confidence regarding their ability to meet increased demand goals, falling 12 points to 51%.
This dichotomy reflects the complex economic environment that businesses are navigating. On one hand, there is optimism about profit growth potential, but on the other, there are concerns about meeting demand and managing costs effectively.
Election uncertainty impacts CFO planning
The upcoming US presidential election 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.
- 31% are accelerating some investments in anticipation of the election
- 23% are holding off on some investments until after the election
- 46% say the election will not affect their investment plans
This political uncertainty is causing finance leaders to take varied approaches to investment planning, with some accelerating investments and others holding off until after the election.
Despite these challenges, Melville advises CFOs to focus on core business fundamentals. He says: "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".
For the global technology industry, these findings present both opportunities and challenges. The increased focus on IT spending and digital transformation across sectors is likely to drive demand for technology products and services.
However, the industry must also navigate the same economic uncertainties and political risks that are affecting their clients.
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