CFOs shifting from cost control to capability in 2026

CFOs and finance leaders are intensifying their focus on investments that drive growth, technology advancement, and artificial intelligence (AI) in 2026. This shift reflects a growing realisation of technology’s role as the foundation for enterprise transformation and operational resilience in a rapidly evolving business environment.

In a year demanding greater discipline and sharper decision-making, Australian organisations must act decisively. Gartner insights reveal four key areas where CFOs are prioritising investments to accelerate growth, enhance technological capabilities and drive sustainable transformation.

Growth functions move to the forefront

A Gartner survey of more than 300 CFOs and finance leaders predicts that Sales and IT will receive the largest budget increases in the coming year. More than half of CFOs plan to boost spending in these areas, and 28 per cent anticipate double-digit growth for both functions. Marketing is close behind, highlighting its essential contribution to business expansion and customer engagement.

Sales and marketing have long been recognised as key drivers of corporate growth. The renewed emphasis on these functions signals that CFOs are serious about reigniting the momentum that has been subdued by the challenging economic and market conditions of the past decade.

At the same time, structural needs such as rising software-as-a-service (SaaS) costs, the expansion of digital processes, and growing AI-related expenses are fuelling significant growth in IT budgets.

These investments are not just about keeping pace with competitors; they are about positioning organisations for long-term, sustainable growth.

In contrast, budgets for back-office functions and customer service are experiencing flat or declining growth after inflation is accounted for. For instance, the average HR budget increase is expected to drop from 2.4 per cent to just 0.7 per cent in 2026.

This tightening is driven by reduced hiring as well as efficiency gains enabled by automation and AI, which are reshaping the way routine tasks are managed across enterprises.

As inflation refuses to fall back into the RBA’s target range, CFOs in both the public and private sectors face mounting pressure to redirect budgets toward functions that drive growth, resilience, and efficiency.

Globally, finance leaders are shifting resources the same way, but Australia’s mix of strong domestic demand and elevated capacity pressures means these reallocations must be sharper and more disciplined than in many other markets.

Technology and AI: The new growth engine

In 2026, Gartner data shows 75 per cent of CFOs intend to raise technology budgets, with nearly half planning increases of 10 per cent or more. This trend underscores the strategic importance of digital transformation, AI adoption, and cybersecurity across all sectors.

As organisations navigate ongoing economic uncertainty and competitive pressures, technology is emerging as the linchpin for operational resilience and future growth.

Digital transformation remains the primary driver for technology budget growth. Organisations are investing in cloud infrastructure, AI-powered data analytics and robust cybersecurity measures to support hybrid work models, streamline operations, and protect against evolving threats.

This shift is not only about adopting new tools but also about reimagining business processes to achieve greater agility and resilience.

Shifting labour strategies: From expansion to optimisation

At the same time, compensation-driven budget growth is slowing. CFOs recognise that productivity uplift, not expanding headcount, is the lever that will make the biggest difference, which is why AI investment is accelerating even as compensation growth moderates.

This pivot echoes global shifts toward automation, but in Australia, it’s being reinforced by sticky inflation, a skills mismatch, and a tight labour market. As a result, organisations have little room to grow margins without technology-driven efficiencies.

This shift is also driving a change in talent strategy. The emphasis is moving from recruitment to upskilling, with organisations investing in training and development to equip employees with the skills needed to leverage new technologies.

Flexible talent models, including contingent labour and automation, are becoming more common as organisations seek to remain agile and cost-effective in a dynamic market.

AI in finance: From experimentation to enterprise scale

AI investments in the finance function are rapidly moving from pilot projects to enterprise-wide initiatives. Nearly 60 per cent of CFOs plan to increase finance AI investments by 10 per cent this year, with another 24 per cent expecting gains of four per cent to nine per cent. This surge reflects growing confidence in AI’s ability to deliver measurable business outcomes.

Productivity is rapidly emerging as one of CFOs’ top three priorities, with 88 per cent of leaders ranking it as a critical focus area. This further emphasises the strong focus on automation, cycle time reduction, and cost control.

AI-powered tools are streamlining processes such as forecasting, reporting and compliance, delivering tangible improvements in speed and accuracy.

While 47 per cent of organisations currently allocate just 1 to 5 per cent of their finance technology budgets to AI, early successes in automation and forecasting are fuelling broader adoption and increased investment.

CFOs increasingly recognise that AI is no longer an experiment. It is becoming a core enterprise capability. The shift from cautious pilots to committed scaling is driven by tangible improvements in productivity and decision-making.

As AI literacy rises and legacy systems are modernised, organisations can expect accelerated investment and deeper integration of AI across finance and the broader enterprise.

Vaughan Archer is a senior director analyst in Gartner's finance practice.