CFOs to gain margin points by backing AI strategically
CFOs that deploy AI strategically will add 10 margin points of growth by 2029, according to Gartner. The forecast is based on the research group's analysis of finance technology investment plans.
Three quarters of CFOs are increasing technology budgets for 2026, and almost half plan rises of 10% or more. Gartner surveyed 314 organisations worldwide in September and October 2025 to assess finance technology portfolios and investment priorities.
The findings suggest a shift in how finance leaders approach technology spending. Rather than treating AI as a standalone experiment, better results are likely to come from managing finance systems as a broader portfolio, with investment spread across established applications, automation tools and selected AI projects.
Generative AI ranked as the top area for future investment among finance leaders surveyed. AI agents also attracted strong interest, despite still being in the early stages of adoption, while embedded AI in cloud enterprise resource planning systems and specialist finance tools showed growing momentum.
This suggests finance teams are looking for AI that fits into existing workflows rather than replacing core systems outright. It also reflects demand for practical tools that can improve day-to-day finance processes.
Mike Helsel, Senior Director Analyst in the Gartner Finance practice, said higher spending is already visible in finance technology budgets.
"Three quarters of CFOs are raising their tech budgets for 2026, with nearly half by 10% or more, as AI is reshaping core finance, process automation and analytics," said Helsel.
He said margin improvement would depend on disciplined execution rather than isolated experimentation.
"However, CFOs will not unlock margin gains from AI by chasing isolated pilots: the biggest returns will come from managing finance technology as a portfolio - strengthening proven applications, accelerating high-value automation and scaling AI where governance and integration are maturing," said Helsel.
Investment priorities
Cloud ERP was the strongest-performing technology across the finance systems landscape, with adoption rising 7% year on year. Reporting automation also ranked among the most valuable technologies, helping teams cut manual work and improve compliance and decision quality.
The emphasis on those systems shows that many finance departments still see gains in more established software categories even as AI attracts new spending. CFOs should avoid letting the focus on AI crowd out useful finance technologies that are not yet in place.
Helsel said the expected margin gains would depend on strong governance and the ability to link technology decisions to business outcomes.
"To capture the margin upside, CFOs need to align AI and technology investments to business outcomes, supported by strong governance, explainability and data readiness," said Helsel. "However, CFOs should not allow AI to cause them to overlook valuable core finance technologies if not already implemented."
ERP role
In Gartner's view, cloud ERP is taking on a broader role in finance departments. It remains the operational base for many core processes, but it is also becoming a channel for introducing AI tools into existing finance work.
That matters because embedded AI tends to face fewer adoption barriers than standalone systems. Finance teams can add automation and analytical tools within software they already use while retaining oversight of controls, reporting structures and data flows.
Helsel said cloud ERP is now valued for both operational and AI-related reasons.
"Cloud ERP is increasingly valued not only as a foundation for finance operations, but also as an application for embedded AI that can unlock new levels of insight and automation across finance," said Helsel.