CFOs to Prioritize Growth Functions, Technology and AI in 2026
•February 10, 2026
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Companies Mentioned
Gartner
Why It Matters
The shift signals a strategic pivot toward revenue‑generating and digital capabilities, reshaping capital allocation across enterprises. It accelerates the adoption of AI and automation while curbing traditional headcount‑driven cost structures.
Key Takeaways
- •Sales, IT budgets see >50% CFO increase plans.
- •HR budgets face cuts, growth under 1% in 2026.
- •48% of CFOs target >10% tech spend rise.
- •Headcount growth expectations drop to 2% next year.
- •Finance AI investments rise, 60% exceed 10% increase.
Pulse Analysis
CFOs are increasingly treating technology and AI as core growth levers rather than peripheral experiments. Gartner’s 2026 benchmark shows sales and IT receiving the largest budget boosts, reflecting a broader industry consensus that digital tools directly influence top‑line performance. This reallocation aligns with the rising cost of SaaS platforms, the need for advanced analytics, and the competitive pressure to deliver faster, data‑driven insights. As a result, technology spend is projected to grow at an average double‑digit rate, with financial services leading the charge.
At the same time, human‑resource allocations are contracting sharply. With only 29% of CFOs planning to increase HR budgets and 22% anticipating cuts, the average growth rate falls to just 0.7% for 2026. The decline mirrors a broader slowdown in compensation growth and a headcount outlook that drops from 6% to 2% year‑over‑year. Companies are betting on AI‑enabled automation to sustain productivity, reducing reliance on traditional hiring while still meeting operational demands.
Finance functions are moving from pilot projects to full‑scale AI deployment. Nearly 60% of CFOs intend to raise AI spending by at least 10%, driven by the need to accelerate forecasting, close cycles faster, and improve staff efficiency—priorities cited by 88% of respondents. Although many firms still allocate only 1‑5% of finance‑tech spend to AI, early wins are prompting deeper integration across the enterprise. This momentum suggests that AI will become a standard component of financial planning, risk management, and strategic decision‑making, reshaping the competitive landscape for firms that lag behind.
CFOs to Prioritize Growth Functions, Technology and AI in 2026
CFOs and finance leaders are making decisive shifts in 2026 budget priorities, prioritizing growth‑driving functions, technology and artificial intelligence (AI), according to Gartner, Inc., a business and technology insights company.
“Sales and IT are expected to see the largest budget increases in 2026, with over half of CFOs planning higher spending, and 28% anticipating double‑digit growth in both areas, with marketing close behind,” said Nauman Abbasi, Vice President Analyst in the Gartner Finance practice. “The emphasis on sales and marketing reflects their role as growth drivers, while IT budget increases reflect structural needs like rising SaaS costs, digital process expansion and AI‑related expenses.”
Conversely, Gartner’s latest 2026 budget benchmarks, based on an October 2025 survey of more than 300 CFOs and finance leaders, show that HR faces the sharpest pullback, with only 29% of CFOs planning increases and 22% expecting cuts, reducing average budget growth from 2.4% in 2025 to 0.7% in 2026 due to reduced hiring and AI efficiency gains. (see Figure 1).
Figure 1: Planned Changes to Functional Budgets in 2026
Percentage of respondents who expect the budget of the following corporate functions to change in 2026 compared to the total expected 2025 spend, for Sales, Corporate IT, Marketing, Research and Development, Supply Chain, Legal & Compliance, Finance, Customer Service/Support and Human resources
Source: Gartner (January 2026)
Enterprises Bet on Technology over Headcount
Technology budgets are set to rise for 75% of CFOs, and nearly half (48%) plan increases of 10% or more, underscoring the strategic importance of digital transformation, AI adoption and cybersecurity.
“Across industries, technology consistently emerges as the area with the highest budget increase, underscoring its role as the backbone of digital transformation and operational resilience,” said Abbasi. “The average increase across all industries is around 10%, but this ranges from around 15% in the financial services sector to 6% in manufacturing.”
At the same time, after years of compensation‑led budget growth, the tide is turning. Pay increases have slowed for three consecutive cycles, dropping from 6.1% in 2024 to 5.4% in 2025, and the moderation will deepen to 4.5% in 2026.
“The real story, however, lies in collapsing headcount growth expectations, from 6% in 2025 to just 2% in 2026 with just 21% of CFOs planning staff increases of 4% to 9%, down from 31% last year,” said Abbasi. “This marks a structural pivot from labor expansion to optimization driven by automation and AI that deliver productivity gains without proportional increases in headcount.”
Finance AI Adoption Moves from Pilot to Scale
Nearly 60% of CFOs plan to increase finance‑function AI investments by 10% or more in 2026, while another 24% expect gains of 4% to 9%.
Efficiency is the top driver, with 88% of CFOs ranking finance staff productivity among their top three priorities, reflecting the need to automate, shorten cycles and control costs.
AI spending remains in early stages for most, with 47% allocating just 1% to 5% of finance technology spend to AI, but confidence is growing as organizations report early wins in automation and forecasting.
“CFOs recognize that AI is no longer just an experiment—it’s fast becoming a core enterprise capability,” Abbasi added. “The shift from cautious pilots to committed scale is driven by tangible gains in productivity and decision‑making. As AI literacy grows and legacy systems are modernized, we expect to see accelerated investment and deeper integration across finance and the enterprise.”
Gartner clients can read more in 2026 CFO Budget Priorities: Growth Functions, Tech and AI Consume Higher Budget Share and non‑clients can read The CFO Report.
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