TLDR: A recent Gartner survey reveals that 37% of finance leaders have paused some capital spending for the latter half of 2025 due to economic uncertainty and geopolitical risks. Despite widespread cost-cutting measures, investments in artificial intelligence (AI) remain a top priority, with CFOs shifting focus from broad experimentation to targeted, impactful AI use cases.
Amidst a complex landscape of cost pressures, policy shifts, and geopolitical risks, a recent Gartner survey indicates a significant shift in corporate spending strategies for the second half of 2025. The survey found that 37% of finance leaders have already paused some capital spending, signaling a conservative approach to the prevailing economic uncertainty. Alexander Bant, Chief of Research in the Gartner Finance practice, noted, ‘This survey of finance leaders shows a near absence of planned increases in capital expenditures in the second half of 2025,’ emphasizing the cautious stance organizations are adopting.
The inclination towards caution is further underscored by a Gartner webinar poll conducted on June 19, 2025, involving 197 finance leaders. This poll revealed a strong willingness to pause or deprioritize capital spending, with 3% of respondents reporting a halt or deprioritization of more than 25% of their capital spending for 2025.
Despite these widespread cost-cutting initiatives—with 67% of finance leaders either currently implementing, having completed, or planning cuts in the second half of the year—investments in artificial intelligence (AI) stand out as a critical exception. Bant highlighted this strategic pivot, stating, ‘We are seeing that even as CFOs tighten cost controls and pause on large-scale investments, they’re not retreating from AI. Instead, they’re sharpening their focus — shifting from broad experimentation to targeted enterprise use cases that offer measurable impact.’
This strategic reallocation of resources is evident in the fact that 33% of respondents are ‘simultaneously cutting costs in some places and investing in others, with an overall net reduction in costs.’ The cuts are primarily aimed at areas such as low ROI software, nonessential travel, and external contractors. Conversely, investments in internal automation, cybersecurity, and financial system modernization are being protected and prioritized.
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The rationale behind the continued emphasis on AI is clear: ‘Companies know that the time is now to make the right pivots in their cost structure to win the AI race that is heating up,’ Bant added. This indicates a strategic understanding among finance leaders that AI is not merely an experimental technology but a crucial element for future competitiveness and operational efficiency, even in a challenging economic climate.
