Confidence among chief financial officers has surged following the 2024 U.S. elections, with 68% of finance leaders expressing optimism about the economy, according to a new survey from professional services firm Grant Thornton.

The survey, conducted in the fourth quarter of 2024, polled more than 250 senior finance leaders. The results indicate that post-election clarity has fueled optimism, marking the highest confidence levels since the third quarter of 2021. Additionally, 65% of CFOs reported confidence in meeting their growth projections, and 64% anticipate increased demand for their companies’ products and services—key indicators for the equipment finance industry.

“The fact that the election was clear one way or another has CFOs feeling a sense of relief,” said Paul Melville, national managing principal of CFO Advisory for Grant Thornton Advisors LLC. “Now finance leaders can proceed with more confidence, including in capital expenditure planning and equipment financing strategies.”

Tax Policy and Capital Investment Trends

As businesses prepare for potential tax policy changes, 33% of CFOs identified tax regulation as the most significant election-related factor impacting their operations. With the expiration of key provisions from the 2017 Tax Cuts and Jobs Act set for the end of 2025, companies are assessing tax strategies in anticipation of policy shifts that could influence equipment purchasing and financing decisions.

“Businesses should start planning now so they can act quickly once policy direction is clear,” said Dana Lance, national Tax Solutions leader for Grant Thornton Advisors LLC.

Despite some tax uncertainty, many businesses are moving forward with investment plans, a critical consideration for equipment finance firms. According to the survey, 45% of respondents are increasing or accelerating investments due to the election results, while only 15% are holding off on certain expenditures. These investment trends could drive increased demand for equipment leasing and financing solutions in the coming months.

AI Adoption and Cybersecurity Investment on the Rise

The survey also highlighted the growing impact of artificial intelligence (AI) on business operations, including in capital allocation and risk management. Among companies utilizing generative AI, 68% reported achieving at least double their initial investment in returns. Businesses are deploying AI in key areas such as data analytics (73%), cybersecurity (63%) and customer experience management (61%). Equipment finance firms may see AI-driven efficiencies improving underwriting, credit assessment, and risk modeling processes.

However, AI governance appears to be slipping, as only 41% of CFOs said their boards are actively engaged in AI oversight — the lowest figure in six quarters. Similarly, formal training on generative AI has declined to 48%, down from 58% in the second quarter of 2024.

“Boards are engaging in thoughtful discussions about AI, particularly around risks and governance,” said Mike Notarangelo, partner and Private Equity Audit & Assurance leader at Grant Thornton LLP. “They want to ensure spending is managed properly and that AI is being implemented responsibly.”

Cybersecurity has also become a top priority, with 69% of CFOs expecting to increase spending on cybersecurity measures over the next year — a 16-quarter high. With AI playing an increasing role in cybersecurity and risk management, 63% of businesses using generative AI are applying it to these areas, up from 55% in the previous quarter.

“The increased cyber spend doesn’t necessarily mean adding more personnel,” said Derek Han, principal and Cybersecurity and Privacy leader for Risk Advisory Services at Grant Thornton Advisors LLC. “Companies are looking at automation and other technologies to optimize security while controlling costs.”

For equipment finance leaders, the continued investment in AI, cybersecurity, and capital expenditures could shape demand for financing solutions in an evolving economic landscape.

For further insights from Grant Thornton’s Q4 2024 CFO survey, visit Grant Thornton’s survey findings.