The adoption and investment in artificial intelligence (AI) are increasing among businesses, according to Citizens’ third annual AI Trends in Financial Management Survey. The survey indicates that 82% of middle market companies intend to raise their AI spending over the next five years, compared to 58% in 2023 and 69% in 2024.
Companies are experiencing efficiency gains from these investments. Sixty-one percent of middle-market chief financial officers (CFOs) reported that AI has made financial processes easier, an increase from previous years. On average, organizations are seeing a 35% return on investment from AI, approaching the 41% level that CFOs identify as successful.
Private equity firms are also focusing more on AI when assessing potential acquisitions. The survey found that 97% of private equity leaders consider a strong AI strategy attractive when evaluating portfolio companies.
“Artificial intelligence isn’t just a buzzword; it’s a transformative technology that is delivering measurable results and shaping valuations,” said Mark Lehmann, vice chair of Citizens Commercial Bank. “Private equity firms are actively seeking companies with strong AI strategies. Businesses must carefully consider how to navigate this transition so they can maximize their value and attract the right partners.”
The survey included responses from 134 CFOs at middle market businesses with revenues between $50 million and $1 billion, as well as 153 financial leaders at private equity firms managing funds under $1.5 billion. It was conducted in October 2025 and focused on attitudes toward and use of AI for improving organizational efficiency.
Fraud prevention continues to be a major application for AI technologies. Sixty-two percent of private equity respondents see fraud detection as an immediate benefit of adopting AI, while nearly half (45%) of middle market companies already use it for combating fraud across areas such as cybersecurity, customer identification, transaction monitoring, and phishing detection.
There is also rapid growth in agentic AI—autonomous systems capable of planning and acting independently. Eighty-two percent of middle market companies and 95% of private equity firms either use or plan to implement agentic AI solutions. Among early adopters, almost all report improvements in operational efficiency and workforce productivity.
Another trend highlighted by the survey is the move toward developing internal expertise: reliance on external partners for implementing AI fell among both company groups compared to last year.
Both types of organizations identified customer satisfaction as a key measure for successful implementation of artificial intelligence initiatives—more important than simply outperforming competitors.
Further details about the survey results and methodology can be found by visiting this link: Go here to see more results from the survey or learn more about the methodology.
