The report’s findings are based on a survey of 2,030 senior finance leaders—half of whom are CFOs—who work for a U.S. business that generates at least $100 million in annual revenue, while 30% of respondents work for a firm that generates at least $2 billion. Some 44% of respondents said they’re focused on cutting costs in the finance function, with 37% focused on cutting costs company-wide.

In working closely with CFO clients, Stephen Philipson, head of global markets and specialized finance at U.S. Bank, has found the finance function often leads by example on cutting costs. “When the CFO’s team is directing the rest of the company, saying, ‘We need to watch expenses and cut costs,’ it usually starts at home.”

The trick is balancing that with investing in growth—and in new technology like AI to improve efficiencies—part of what Philipson referred to in our conversation as “that long-term strategic growth mindset.”

About one-third (34%) of respondents said they’re currently exploring emerging technologies, up from 27% in 2023. After data analytics (52%), AI (51%) is the second-highest-ranking priority when it comes to investing in the finance function, with automating payments another worth noting. About 80% said they’re expecting to use fintech platforms or systems for payments in the next two years compared with just 37% currently.

“Years ago, the role of a CFO had more to do with compliance,” Michelle Hook, CFO at the restaurant group Portillo’s, told U.S. Bank. “But we’re now more focused on growth.”

I asked Lauren Cooks Levitan, CFO of Faire, a wholesale marketplace that connects independent retailers with global brands, her perspective. “My responsibility as a CFO is to drive sustainable growth that ensures we can support our customers for the long term,” Levitan said. “To do this, I also need to ensure that we have a capital structure and overall resource allocation strategy that allows us to continue investing in what our customers need to succeed.”

More finance leaders said they’re confident about balancing short- and long-term responsibilities: About 43% of respondents said they struggle to balance mitigating risk and driving growth, down from 51% in 2023 and 49% in 2022.

“You must always have a long-term view, but you won’t be here for the long term if you don’t manage the short term,” U.S. Bank CFO John Stern said in a statement.

Those surveyed said the biggest current risks include talent shortages, uncertainty around the Federal Reserve’s rate path, inflationary pressure, and geopolitical tension. And while only 37% of respondents said they were optimistic about the U.S. economy over the next 12 months, that figure increased to 58% when asked about an outlook for the next three years.

“We expect positive economic growth and only put the chance of recession at 25% to 30%,” Matthew Schoeppner, senior economist at U.S. Bank, wrote in the report, “which is about half of the probability at this point last year.”

Sheryl Estrada
sheryl.estrada@fortune.com

María Soledad Davila Calero curated the Leaderboard and Overheard sections of today’s newsletter.

Upcoming event: Fortune‘s Future of Finance event in New York City will take place on May 16. It’s going to be a unique opportunity to explore with top players how technology is set to transform finance. You can learn more about it and apply to attend here; email FutureFinance@Fortune.com with inquiries.

Leaderboard

Colin Wittmer was promoted to CFO at the professional services and consulting firm PwC, effective July 1. A 30-year PwC veteran, Wittmer is currently PwC’s deals leader. He has assisted with hundreds of intricate domestic and global transactions, including acquisitions, divestitures, IPOs, and spin-offs.

Dawn Allen was named CFO at Haleon (NYSE: HNL), a consumer health care company and maker of Sensodyne. Allen will join Haleon on Oct. 28 and assume the role of CFO on Nov. 1. She will succeed Tobias Hestler as finance chief. Allen is currently the CFO at Tate & Lyle plc. Before that, she had a 25-year career at Mars Inc., where she was most recently global CFO and VP global transformation.

Big deal

Broadridge's 2024 CX & Communications Consumer Insight Survey examines how consumers feel about present-day communication experiences across various industries. A key finding of the report is that 70% of consumers surveyed think the companies they do business with need to improve the customer experience. In 2019, just 35% of consumers surveyed had that sentiment. And 90% of consumers think that it is important for companies to honor their preferred communication method, but only 31% think that companies are doing a great job with it.

Going deeper

A new Allianz Trade research report examines the global outlook for private debt and equity markets. An analysis found that the private debt asset class has grown by 60% to $1.6 trillion in the last five years, becoming a major element of the alternative investment scene. However, high inflation and interest rates have broken a decade-long growth streak for the asset class. Allianz Trade expects the private equity market to be stimulated by improved valuation and renewed IPO activity.

Overheard

“Really the way to think of Tesla is almost entirely in terms of solving autonomy and being able to turn on that autonomy for a gigantic fleet. It might be the biggest asset-value appreciation in history when that happens when you can do unsupervised, full self-driving.”

—Tesla CEO Elon Musk said during the company’s Q1 earnings call. While Tesla is debating whether to scrap their plans for a more affordable EV model, Musk argued that the company should not be viewed merely as an automaker but also as a software company.