UK finance chiefs shift spending toward AI as graduate hiring cools

UK finance chiefs are preparing to increase technology spending while slowing graduate recruitment, according to Deloitte’s quarterly survey of CFOs at large companies. Conducted between 1 and 13 July 2026, the survey found nearly all respondents expect business technology budgets to rise, with cost control cited as the biggest factor restraining graduate hiring.

Confidence in AI has accelerated. Some 73% of CFOs said their view of AI had improved over the past year, up from 59% at the end of 2025 and 39% in late 2024. Deloitte said 96% expect UK businesses to raise technology spending over the next five years, while 93% expect an increase within 12 months. More than three-quarters, 78%, expect AI to lift productivity over five years, and half expect gains within a year.

The spending plans come as CFOs keep prioritising cost reduction and cash control. Deloitte chief economist Debapratim De said the world economy had handled the shock from the conflict in Iran better than many feared, but geopolitical risks remained the top concern for 16 of the past 18 quarters. Weak UK productivity and higher energy prices followed as key worries, underscoring the tension between enthusiasm for AI tools and caution over the broader economy.

The findings describe intentions rather than delivered productivity gains, and the panel reflects large-company boardrooms rather than the wider economy. The clearest signal is a budget shift toward software and productivity tools, narrowing some traditional entry routes for graduates.