CEOs double down on AI, transformation, and M&A to drive growth amid global uncertainty: Survey
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Chief executives around the world remain confident about their own companies’ prospects even as uncertainty clouds the global economic outlook, according to the latest EY-Parthenon CEO Outlook Survey. The quarterly survey, which covered 1,200 CEOs across 21 countries, shows that business leaders are increasingly relying on artificial intelligence (AI), transformation initiatives and mergers and acquisitions (M&A) to sustain growth in a volatile environment.
CEO Confidence Index
The survey’s CEO Confidence Index — a measure of global CEO sentiment on a scale of 1 to 100 — slipped to 78.5 in the fourth quarter of 2025 from 83.0 in the third quarter. EY-Parthenon said the decline reflects mounting concerns over geopolitical tensions, persistent market volatility, muted global growth forecasts, supply-chain disruptions, rising costs and slowing activity in key economies.
Despite these headwinds, CEOs remain optimistic about internal performance. Nearly nine in 10 respondents expect revenue growth and productivity gains to support profitability in 2026, even as 61% anticipate a rise in operating costs. EY-Parthenon said this confidence is being driven by sustained investments in talent and technology, with leaders increasingly recognising that continuous transformation — rather than one-off change — is essential to remain competitive.
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Customer engagement and innovation
Customer engagement and innovation are emerging as top priorities, with 40% of CEOs focusing on improving customer retention amid shifting consumer behaviour, while 37% are prioritising innovation in products and processes. The survey also found that CEOs are more inclined to act rather than wait in the face of uncertainty. Around 40% said they would accelerate investments in response to geopolitical or trade policy developments, compared with 31% who would delay and 10% who would halt investments. Optimising operations and improving productivity, including through AI and digitalisation, was cited as the top priority by 43% of respondents.
Commenting on the findings, EY Global Chair and CEO Janet Truncale said successful CEOs are increasingly confident in operating amid uncertainty. “They are acting boldly to embrace new technologies at speed and foster collaboration to gain competitive advantage,” she said, adding that decisive execution, talent investment and cross-industry collaboration will be critical in the year ahead.
AI as key growth driver in 2026
AI is expected to be a key growth driver in 2026, with the survey suggesting a shift from pilot projects to enterprise-wide scaling. Around 58% of CEOs expect AI to become a major engine of growth over the next two years, while 32% believe it will fundamentally reshape operations. While most CEOs have either begun or plan to begin significant transformation initiatives this year, only 20% said AI has significantly exceeded expectations so far.
Andrea Guerzoni, Global Vice Chair at EY-Parthenon, said AI is delivering value, but breakthrough gains remain limited. “Only a standout 20% are capturing outsized returns, and they are well positioned to turn AI into an engine rather than an experiment,” he said.
Talent remains central to AI-led transformation. Nearly 79% of CEOs said they are optimistic about attracting and retaining critical skills, while 69% believe AI investments will help maintain current employment levels or drive new hiring. The share of CEOs who expect AI to reduce headcount fell sharply to 24% in December 2025 from 46% in January 2025.
M&As to play pivotal role
M&A is also set to play a pivotal role in 2026, with 53% of CEOs planning acquisitions aligned with growth priorities such as digitalisation and productivity. While geopolitical scrutiny is reshaping deal strategies, appetite remains strong, particularly for domestic and regional transactions. Joint ventures and strategic alliances are gaining traction, with 79% of CEOs planning such initiatives in 2026.
The survey found the US remains the top global investment destination, followed by Canada, Germany, the UK, and India, highlighting how CEOs are balancing growth ambitions with geopolitical and regulatory risks in an increasingly complex global landscape.