CFO confidence wanes as uncertainty reshapes priorities

Deloitte’s latest CFO Sentiment Report (Edition 21) reveals a sharp divergence between how finance leaders view the broader economy and their own organisations, with many adopting a disciplined, defensive posture while continuing to invest selectively for future growth.

Key takeaways

• Business confidence softens, not collapses: Net optimism in own business prospects has moderated to 50%, reflecting a shift toward neutrality rather than pessimism.
• Economic confidence hits a new low: Sentiment towards the Australian economy has fallen to -36%, amid inflation and geopolitical instability.
• Risk appetite remains constrained: Net uncertainty has spiked to 93%, with only 26% of CFOs believing now is a good time to take on risk.
• AI is everywhere but value is not: Around 90% of organisations are using AI, but only 16% report extensive use, highlighting challenges in scaling impact.

Economic outlook deteriorates despite business resilience

The survey shows sentiment toward the Australian economy has fallen to a net -36 per cent, the lowest level on record, driven by persistent inflationary pressures and geopolitical instability.

In contrast, confidence in CFOs’ own organisations remains comparatively resilient, with net optimism moderating to 50 per cent. While this reflects a softening outlook, it signals a shift toward neutrality rather than outright pessimism.

This divergence highlights a growing belief among finance leaders that, while the external operating environment is deteriorating, their businesses are better positioned to navigate the challenges ahead.

Risk appetite tightens as uncertainty surges

Elevated uncertainty is now a defining feature of the CFO agenda. Net uncertainty has climbed to 93 per cent – close to historic highs – prompting organisations to tighten risk settings and prioritise resilience.

CFOs are placing greater emphasis on execution, liquidity management and balance sheet strength, with cost control and cash management emerging as key levers in navigating volatility.

The findings suggest many businesses are reverting to traditional “defensive playbooks”, focusing on controllable variables while deferring more aggressive expansion plans.

AI adoption widespread, but scaling remains the challenge

Despite broader caution, investment in artificial intelligence continues to accelerate. With around 90 per cent of organisations now using AI in some capacity, adoption is near universal across Australian businesses.

However, relatively few have progressed beyond early-stage use cases, underscoring a key challenge for finance leaders: translating AI investment into enterprise-wide value and measurable business outcomes.

A shift toward disciplined growth

Overall, Deloitte’s findings point to a recalibrated CFO mindset defined by discipline, selectivity and execution.

Rather than retreating in uncertain conditions, finance leaders are balancing short-term resilience with longer-term capability building, investing where it matters while maintaining tight control over costs and risk exposure.

As economic volatility persists, the ability to execute effectively and convert strategic investments into tangible results will define success for Australian organisations in the year ahead.

Read the full report