CEOs double down on AI, transformation and M&A to drive growth amid uncertainty in the global economy

• Nine in 10 CEOs surveyed expect revenue growth and increase in profitability despite a dip in broader CEO sentiment
• 2026 a tipping point for AI to move from pilot to enterprise scale
• CEOs view M&A and strategic alliances as a path to accelerate transformation efforts in 2026, despite headwinds

CEOs are more confident in their own companies’ prospects than they are in the outlook for the global economy, according to the latest EY-Parthenon CEO Outlook Survey, a quarterly survey of 1,200 global CEOs across 21 countries.

The survey’s CEO Confidence Index – a measure from 1 to 100 that quantifies CEO sentiment globally across a wide range of business dimensions – shows that overall CEO sentiment has dipped from 83.0 (Q3 2025) to 78.5 (Q4 2025).

This decline in sentiment is reflective of growing uncertainty towards today’s business landscape – a landscape characterized by growing geopolitical tensions, persistent volatility, a muted global economic forecast, supply-chain disruption, rising cost pressures and slowing activity in major markets.

Despite these persistent external headwinds, CEOs surveyed remain confident in their ability to strengthen performance from within. Nine in 10 CEO respondents expect revenue growth and productivity gains to support profitability in 2026, even if 61% anticipate increases in operating costs.

This confidence is powered by investments being made into talent and technology transformation, with CEOs recognizing that one-off change isn’t enough and are driving continuous, proactive transformation to sustain growth. Forty percent of respondents are prioritizing improving customer engagement and retention amid shifting consumer behavior, and 37% are concentrating on innovating products and processes.

The survey shows that CEOs are more willing and able to act amid uncertainty. They are more likely to accelerate investments in response to geopolitical or trade policy developments (40%) than delay (31%) or stop (10%) investment activity. Forty-three percent of CEOs cited optimizing operations and improving productivity, including artificial intelligence (AI) and digitalization, as their top priority for the year ahead in adapting to a shifting economic environment.

Janet Truncale, EY Global Chair and CEO, says:

“Today’s most successful CEOs are confident in their ability to operate under uncertainty, acting boldly to embrace new technologies at speed and foster confident collaboration to gain competitive advantage. In the year ahead, business leaders need to execute decisively and intentionally by scaling innovation, investing in talent and working closely within their organization and across industries to create new value.”

AI and skills transformation ignite CEO ambitions for growth

2026 is expected to be a turning point for AI investments, as CEOs shift from piloting technologies to scaling them across their organizations to accelerate transformation. AI adoption is evolving from a bolt on to a built-in foundation of business models, with 58% of surveyed leaders expecting AI to be a major growth engine in the next two years, while 32% believe it will fundamentally reshape operations as they scale these technologies enterprise-wide.

Almost all CEOs surveyed have begun (52%) or are planning to begin (45%) significant transformation initiatives this year in a bid to extract value and growth. CEOs are increasingly regarding AI as a dependable enabler of productivity, revenue growth, customer experience and efficiency for the year ahead. Nevertheless, many are yet to unlock AI’s full potential, with only 20% reporting that AI has significantly exceeded expectations over the last year.

Andrea Guerzoni, Global Vice Chair EY-Parthenon, says:

“Despite the hype around outsized AI gains, the reality for CEOs is much more complex. AI is meeting and somewhat exceeding expectations for many CEOs, but only a standout 20% are capturing breakthrough returns, and they will be in a strong position to forge ahead, making AI more of an engine than an experiment.”

With large-scale shifts in workforce patterns seen globally, 79% of CEOs surveyed feel optimistic about their ability to attract and retain critical talent. Talent will play a key role in supporting AI transformation initiatives, and in developing teams that are equipped to navigate external macroeconomic and geopolitical pressures and uncertainties. Over two thirds (69%) of respondents believe investments in AI will lead them to maintain current levels of employment or hire new talent over the coming year. Notably, the proportion of CEO respondents who believe investments in AI will lead to a reduction in headcount reduced from 46% in January 2025, to 24% in December 2025.

Andrea Guerzoni, Global Vice Chair EY-Parthenon adds: “This is reflective of the fact that CEOs are taking a realistic and pragmatic view on the need to add new skillsets and to keep human oversight in many AI use cases for the near future.” 

M&A as a force for accelerated transformation

M&A is expected to remain a key pillar for CEOs, with many respondents pursuing acquisitions to accelerate transformation efforts, productivity, digitalization and growth in 2026. While geopolitical scrutiny is reshaping deal strategies, investment appetite remains resilient, but with a growing preference for domestic and regional transactions.

CEOs are increasingly focused on deals that deliver on their priorities including technology, talent and capabilities at speed, balancing ambition with pragmatism in an even more uncertain geopolitical and regulatory environment.

Notably, CEOs are increasingly seeking to meet these objectives through joint ventures and strategic alliances, with 79% of respondents planning initiatives in 2026, compared with 62% in 2025 – unlocking the immediate access to new capabilities and technology through more flexible and less complex deals.

CEOs are also showing proactivity in navigating the global business environment with M&A. Eighty-three percent of respondents have adapted their strategic investments over the past 12 months in response to geopolitical and trade policy developments and 40% reported to have accelerated an investment as a result.

In the next 12 months, 53% of CEO respondents plan to pursue acquisitions specifically aligned to their growth agendas, including digitalization, optimizing operations, improving productivity, and accelerating growth. This represents a 5% increase from Q3 2025, showing that CEOs are moving proactively and driving sharper decision-making to help deliver growth.

The survey data confirms that the US remains the top global investment destination followed by Canada, Germany, UK and India, revealing that CEOs are balancing investments across markets as they recalibrate growth ambitions against shifting geopolitical risks and regulatory scrutiny.

Guerzoni, says: “2026 is not going to be a year of certainty, and CEOs know this. The winners will be those who actively rewire their capital allocation, navigate geopolitical complexity and focus on technology-led M&A to fashion flexible, resilient portfolios that are built not only to absorb further potential market shocks, but also to maximize opportunities presented by ongoing market volatility.”

To read the full report, please visit: Does today’s disruption provide the blueprint for tomorrow’s growth?

-ends-

Notes to editors

About EY

EY is building a better working world by creating new value for clients, people, society, and the planet, while building trust in capital markets.

Enabled by data, AI and advanced technology, EY teams help clients shape the future with confidence and develop answers for the most pressing issues of today and tomorrow.

EY teams work across a full spectrum of services in assurance, consulting, tax, strategy and transactions. Fueled by sector insights, a globally connected, multi-disciplinary network and diverse ecosystem partners, EY teams can provide services in more than 150 countries and territories.

All in to shape the future with confidence.

EY refers to the global organization and may refer to one or more of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. Information about how EY collects and uses personal data, and a description of the rights individuals have under data protection legislation are available via ey.com/privacy. EY member firms do not practice law where prohibited by local laws. For more information about our organization, please visit ey.com.

This news release has been issued by EYGM Limited, a member of the global EY organization that also does not provide any services to clients.

About the survey

On behalf of the global EY organization, FT Longitude, the specialist research and content marketing division of the Financial Times Group, conducted an anonymous online survey of 1,200 CEOs from large companies around the world between November and December 2025. The survey aims to provide valuable insights on the main trends and developments impacting the world’s leading companies as well as business leaders’ expectations for future growth and long-term value creation. Respondents represented 21 countries (Brazil, Canada, Mexico, the United States, Belgium, Luxembourg, the Netherlands, France, Germany, Italy, Denmark, Finland, Norway, Sweden, the United Kingdom, Australia, China, India, Japan, Singapore and South Korea) and five industries (consumer and health; financial services; industrials and energy; infrastructure; technology, media and telecoms). Surveyed companies’ annual global revenues were as follows: less than US$500m (20%), US$500m–US$999.9m (21%), US$1b–US$4.9b (29%) and greater than US$5b (30%).

The CEO Confidence Index is a measure of executives’ outlook on the macroeconomic environment and company performance, derived from data collected as part of the EY-Parthenon CEO Outlook Survey. CEOs rated their outlook on 15 statements using a 5-point scale ranging from "very pessimistic" (0) to "very optimistic" (100). These responses were categorized into five thematic groups: sector growth, prices and inflation, company growth, talent, and investment and technology. Higher index values indicate a more positive sentiment regarding the future state of the economy and their businesses. An index of 100 is fully optimistic, 50 is neutral, and 0 is fully pessimistic.