The momentum behind AI adoption and investment is growing, driving measurable ROI for businesses and emerging as a key factor in private equity decisions, according to Citizens’ third annual AI Trends in Financial Management Survey.
The survey found that 82% of middle market companies plan to increase AI spending over the next five years, up from 58% in 2023 and 69% in 2024, the survey found.
The growing enthusiasm is supported by tangible efficiency gains and measurable returns. Sixty-one percent of middle-market CFOs report that AI has made financial processes easier, a significant uptick from prior years. On average, companies are seeing a 35% return on investment, closing in on the 41% threshold that CFOs say would define success.
Investing in AI capabilities also makes strategic sense for companies considering a future sale. The survey found that private equity firms are increasingly prioritizing AI when evaluating portfolio companies. Ninety-seven percent say a successful AI strategy is an attractive trait in potential acquisitions.
“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 Citizens survey of 134 CFOs at middle market businesses ($50 million to $1 billion in annual revenue) and 153 financial leaders at PE firms (fund size less than $1.5 billion) was conducted in October 2025 and focused on how companies and private equity firms are thinking about AI processes and utilizing the technology to increase efficiencies within their organizations. Other key findings include:
- Fraud prevention remains a leading AI use case. Sixty-two percent of private equity firms view fraud detection as a short-term benefit of AI, while 45% of middle market companies already use AI to combat fraud. Use cases span cybersecurity, customer identification, real-time transaction monitoring and phishing detection.
- Adoption of agentic AI (autonomous, goal-driven AI systems that can plan, reason, and take actions independently with minimal human oversight) is accelerating fast. Eighty-two percent of middle market companies and 95% of PE firms are currently using or planning to implement agentic AI. Among early adopters, nearly all (99%) agree it has improved their operational efficiency and workforce productivity.
- AI development is shifting in-house. As investment enthusiasm grows, companies are reducing reliance on external partners. The percentage of middle market companies that have partnerships with external firms utilizing AI dropped to 58% in 2025 from 64% in 2024. Among PE firms, the figure fell to 52% from 76%, representing a sharp pivot toward developing internal expertise.
- Customer satisfaction is a critical measure of success. Both middle-market companies and PE firms agree that increasing customer satisfaction is a more important indicator of successful AI implementation than gaining an advantage over their competitors.
Go here to see more results from the survey or learn more about the methodology.
