CFOs could gain 10 margin points through AI, but portfolio strategy matters
CFOs who deploy artificial intelligence alongside broader finance technology investments could unlock an additional 10 percentage points of margin growth by 2029, according to Gartner's 2026 Finance Technology Bullseye Report. The gains require a portfolio approach - not isolated pilots.
Three quarters of CFOs are raising their technology budgets for 2026, with nearly half increasing spending by 10% or more. But Gartner warns that vendor hype and fragmentation in the finance technology market can lead to wasted budgets and costly mistakes.
"The biggest returns will come from managing finance technology as a portfolio - strengthening proven applications, accelerating high-value automation and scaling AI where governance and integration are maturing," said Mike Helsel, senior director analyst in Gartner's finance practice.
Cloud ERP remains the foundation
Gartner surveyed 314 organizations worldwide in September and October 2025 to assess finance technology portfolios and investment strategies. Cloud ERP systems topped the rankings as the most valued technology, with adoption rising 7% year over year.
These systems serve as both operational foundations and enablers of embedded AI capabilities. Finance organizations using cloud ERP with embedded AI assistants will achieve a 30% faster financial close by 2028, Gartner projects.
Generative AI and automation lead future investments
Generative AI shows the highest future investment interest among finance leaders, though most deployments remain in pilot phases. AI agents and embedded AI also signal strategic bets on autonomous finance and faster decision cycles.
Process mining and intelligent document processing are gaining momentum as enablers of scalable automation. Meanwhile, extended planning and analysis technologies and accounting engines are declining in value as organizations shift toward integrated applications.
Spreadsheets remain the most widely adopted tool, reflecting persistent reliance even as finance teams modernize their stacks.
Planning and analysis will shift to AI-enabled tools
By 2029, 40% of financial planning and analysis teams at large enterprises are expected to use AI-enabled simulation tools to replace bottom-up manual planning, up from 5% today.
Blockchain saw the largest positive shift in future investment ranking, reflecting growing interest in audit trails and compliance.
To capture margin gains from AI, CFOs need to align investments to business outcomes and establish strong governance, explainability, and data readiness. Success depends on treating technology as an integrated portfolio rather than chasing individual solutions.
Learn more about AI for CFOs and AI applications in finance.
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