Coupa: CFOs Turn to AI Amid Trade Uncertainty

Chief financial officers (CFOs) worldwide are accelerating artificial intelligence adoption as trade volatility and geopolitical instability force fundamental shifts in corporate spending strategies, according to business spend management platform Coupa's annual Strategic CFO Report.

The report, based on a survey of 500 finance leaders across North America and Europe, reveals that 69% of CFOs express concern about meeting end-of-year financial targets, with 40% reporting extreme worry about performance.

Geopolitical instability tops the list of external threats cited by 46% of respondents, matching supply chain disruptions at the same level. Inflation concerns follow closely at 45%, creating what finance leaders describe as unprecedented operational complexity.

Trade tariffs have emerged as a significant concern for 42% of CFOs globally, with German finance leaders expressing the highest anxiety at 48%. 

Germany's position as one of the world's largest exporters, particularly to the United States, makes the country vulnerable to trade restrictions affecting its automotive and machinery sectors.

“The companies achieving profitable growth in today's environment share a common characteristic: They've replaced cyclical cost-cutting with continuous optimisation,” says Michael Agresta, CFO at Coupa. 

“By implementing frameworks that regularly evaluate organisational structure, geographic footprint, and resource allocation, financial leaders can create perpetual efficiency gains that generate savings for reinvestment.”

Operational responses to trade uncertainty

Corporate responses to tariff concerns are driving tangible operational changes. Twenty-two percent of companies are increasing inventory levels to mitigate financial risks, while 21% are automating processes to reduce operating expenses. 

Hedging strategies and product pricing increases each account for 19% of responses, with 18% restructuring supply chains entirely.

US companies are taking more preemptive action than their European counterparts, with 28% of American CFOs reporting inventory level increases compared to lower rates elsewhere. This regional difference reflects varying exposure to trade disruption risks.

Investment priorities have shifted dramatically from defensive cost-cutting to growth-oriented strategies. 

AI investment leads growth strategies at 40%, followed by workforce expansion at 38% and product offering expansion at 37%. Merger and acquisition activity has increased to 39% from 35% in 2024, indicating strategic consolidation trends.

The focus on talent investment represents a sharp reversal from recent years. In Coupa's 2024 report, hiring ranked as the lowest growth priority, but now sits near the top as companies shift from cost-cutting to strategic workforce development. 

Only 6% of CFOs plan job cuts this year, marking the end of aggressive workforce reduction strategies.

Data challenges persist despite digital progress

Despite increased digitisation, data accessibility remains problematic. Only 28% of CFOs can access all spend data instantly through a single system, leaving most struggling with real-time insights. 

While 86% claim instant data access, 41% admit struggling to react quickly when cost-cutting measures become necessary.

This gap indicates that available data often lacks seamless integration or actionable format. Many CFOs continue operating across disconnected platforms and spreadsheets, preventing effective master data management and limiting access to real-time analytics.

Manual processes compound these challenges, with 47% of finance leaders describing spend data gathering as too labour-intensive, up from 40% in 2024. 45% report spend data scattered across multiple sources, while 41% cite outdated information as a primary obstacle.

“The financial strategies that deliver sustainable growth aren't built on assumptions but on verified, high-integrity data flowing across the organisation,” says Agresta. 

“Companies that invest in creating a unified data foundation and robust data strategy discover they can navigate uncertainty with greater precision while uncovering opportunities others miss entirely.”

AI adoption accelerates across finance functions

AI confidence among CFOs has increased substantially, with concerns about effective implementation dropping from 89% in 2024 to 66% this year. 

The proportion of CFOs expressing minimal concern about AI implementation has surged 218% year-over-year, rising from 11% to 35%.

Currently, 48% of CFOs use AI in finance and procurement processes, with 26% reporting full integration across these functions. 

All surveyed finance leaders plan AI investments within the next year, focusing on spend optimisation, financial planning, and fraud detection.

Generative AI applications show particular promise, with 20% of CFOs identifying productivity improvements through streamlined reporting as the most significant benefit. 

Decision-making improvements rank second at 17%, followed by autonomous task execution at 16%.

“We're entering an era where financial strategy and technological innovation are one and the same,” says Chris Siwek, Vice President of Finance and Procurement at cybersecurity firm Snyk. 

“Forward-thinking finance leaders recognise that the way we collect, analyse, and act on financial intelligence will fundamentally reshape competitive advantage.”

However, measuring AI return on investment remains challenging, with 25% of CFOs struggling to quantify financial impact. 

This measurement difficulty represents one of the biggest obstacles finance leaders expect to face over the next year.

Cross-functional alignment between CFOs and chief information officers has improved, with 44% reporting alignment compared to 27% last year, representing a significant improvement from the 73% who reported misalignment previously. 

This improvement reflects growing emphasis on coordinating digital transformation, AI strategy, and spend intelligence initiatives.

Michael Crome, CFO at Las Vegas Raiders, illustrates this strategic shift: “For us, growth isn't just about adding more, it's about building smarter. We knew that to scale with intention, we needed to put the right foundation in place. Investing in modern systems was a turning point.”

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