According to Gartner, chief financial officers (CFOs) are planning significant technology budget boosts—despite ongoing economic and geopolitical disruption—viewing digital investments as crucial for growth and efficiency.

A recent survey conducted by the research and consulting firm of 300 CFOs found that 77% of respondents plan to boost spending in the technology category. What’s more, nearly half (47%) intend to increase spending by 10% or more this year compared to 2024.

“Investing in technology is no longer a choice but a necessity for companies aiming to maintain a competitive edge,” explained Randeep Rathindran, who serves as distinguished VP, research, in the Gartner finance practice.

“The continued focus on technology aligns with developments in traditional and generative AI, which promise to drive new offerings, enhance decision-making, and boost productivity,” he noted.

Employee Compensation Spend Falling?
Inversely, spending on staff compensation is trending downwards, with 61% of CFOs planning to increase average employee compensation in 2025, compared with 71% last year and 86% the year prior.

Further, the proportion of CFOs planning to boost average employee compensation by 10% or more fell from 16% in 2023 to 11% in 2025. While 70% of respondents planned increases of 4% to 9% in 2023, only around 50% are planning the same amount in 2025.

“Although the cooling labour market gives organisations more negotiating power on compensation, CFOs should remain sensitised to the potential risks of attrition and low engagement as prices for household necessities remain stubbornly high,” advised Rathindran.

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Capitalising on Innovation and Efficiency
Most sectors are prioritising technology spending in 2025. In the retail sector, cost of goods sold (COGS) and compensation are likely to see increases as organisations aim to enhance product quality and customer interactions.

Meanwhile, in the banking sector, compensation and external services are also prioritised to attract technical talent and outsource non-strategic work.

“The consistent increase in technology budgets across sectors highlights the ongoing strategic shift towards digital transformation as a driver of innovation and efficiency,” said Rathindran.