Businesses Warn: Tax Hikes Make AI Cheaper Than Hiring Humans

UK CFOs Are Giddy About 2025—But Their Wallets Are Whispering “Hold On”

Surprisingly, 70 % of UK business leaders think their companies will thrive by next year. Yet that rosy outlook sits on shaky ground: inflation (42 %), energy bills (36 %) and taxes (35 %) are all piling up like a bad pile‑up at the toll booth.

This tension shows up in the latest Pleo CFO’s Playbook for 2025, where we surveyed 500 finance decision‑makers. More than three‑quarters—76 %—report feeling pressure like never before, juggling macro‑economic twists as hard as a salsa dance.

Why Finance Heads Need a Tech Up‑Shock

When you’re buried in spreadsheets, no time to strategise, you’re 103 % more likely to lose sight of the bigger picture. Yet only 34 % of companies actually use AI to cut those time‑draining chores.

British firms laugh at AI, but they’d rather replace people than motivate them. Further, more than half—59 %—say AI is easier than giving a pep‑talk, with that number jumping to 82 % in firms that use AI heavily.  Another pressure point: taxes. Over 57 % think rising National Insurance and minimum wage bumps make AI a cheaper choice than hiring fresh talent, while 68 % fear they’ll have to off‑load these costs to customers.

But a Ticket for the Wrong Destination? The Tone‑Deaf AI Tactic

47 % of leaders admit digital overload pushes them back to good‑old spreadsheets;
52 % find their tech stack so crowded they’re literally drowning in tools.

Even worse: a 72 % slump because poor integration means workers spend a whopping 123 hours a year (more than three full working weeks) hopping between incompatible apps. That’s a recipe for frustration and wasted PTO.

What’s the Reality Check?

Finance teams need a single view of all accounts, currencies and wallets—the holy grail of visibility. Sixty‑three percent say that’s the most critical feature. But the rollout must preserve human judgment; nothing beats a person’s gut when deciding where to funnel cash.

Making AI Work—Not Just Sit in the Same Corner

Round three: 70 % of UK leaders want to hire for AI and tech fluency, and 71 % believe AI can wrangle admin chores away from CFOs, freeing them for high‑level play. Yet they must police this with:

well‑defined objectives,
measurable outcomes,
full integration with existing systems,
and the right people to get it done—faster than a coffee break.

Keeping the cuffs tight? By sharpening financial visibility, staying agile around key events, stretching each pound, and dodging subscription clutter. If you’re on a razor‑thin budget, a slick, well‑integrated solution can be the compass you need.

President of Pleo CFO Søren Westh-Lonning puts it best: “In 2025, uncertainty will keep coming. But mastering it requires solid financial footing, not educated guesses. Leaders must turn finance teams into dynamic change‑makers, enabling stability across the board. AI can help, but only if it’s used strategically, not just to replace people.”