AI drives productivity, but CEOs struggle to turn gains into growth

AI delivers productivity gains

AI is emerging as a source of productivity improvement for organizations, with half (50%) of CEOs surveyed identifying AI technologies as the single largest contributor to productivity gains over the past 12 months, ahead of business process redesign (46%). Rather than treating these gains as a short-term efficiency win, nearly half (48%) of leaders are reinvesting the additional capacity into innovation and transformation initiatives aimed at supporting future growth.

Yet as AI adoption accelerates, attention is shifting from efficiency to value creation. While CEOs report tangible operational improvements from AI, many are struggling to translate those into meaningful growth and profitability. Legacy systems, organizational complexity and regulatory requirements continue to be limiting, with almost a quarter (23%) of leaders surveyed saying that AI-driven gains are often absorbed before they fully translate into bottom-line results.

The findings suggest that the competitive challenge is no longer whether AI can simply improve productivity, but how effectively organizations convert that productivity into sustainable business value.

The AI ROI challenge

CEOs surveyed still struggle to measure and quantify the impact of AI investments. While more than half (56%) of respondents report at least some reliable visibility into AI costs and returns, only 16% have clear, real-time visibility of ROI. Almost a quarter (24%) can track some AI costs but remain limited in their ability to assess overall ROI, highlighting an emerging gap between AI adoption and organizations’ capacity to measure value creation.

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

“AI is creating real productivity gains, but productivity alone is not a strategy. The challenge for CEOs now is to convert those gains into measurable value and competitive advantage. The leaders who will pull ahead will be those that can create long-term sustainable growth by redesigning how people and technology work together, transforming their operating models and making smart choices about where they deploy capital.”

Skills become the growth constraint

CEOs overwhelmingly see AI as a workforce transformation issue rather than a blunt instrument for changing headcount. Four in five (80%) respondents believe AI will have a greater impact on roles, skills and ways of working than on workforce size over the next three years.

Yet workforce readiness is emerging as a major concern. Nearly half (47%) of respondents say their organizations are not developing AI skills quickly enough to keep pace with innovation. A further 72% believe skills shortages will become a greater barrier to growth than access to capital within three years.

The findings suggest that while organizations are rapidly adopting AI, many are finding it harder to develop the skills and capabilities needed to realize its full potential. Reskilling is already a key driver of productivity, cited by 33% of CEOs. Yet only 15% say overall productivity gains are being reinvested in workforce development, underscoring the need for leaders to simultaneously invest in both AI and talent if they are to sustain long-term growth.

Growth through portfolio optimization

While growth remains a priority, CEOs are becoming more selective about how they achieve it via their portfolios. Leaders are focused on balancing speed, control, cost and flexibility while reducing execution risk. Rather than relying on a single route to growth, leaders are combining innovation, alliances, partnerships, acquisitions and divestments to build capabilities and deploy capital more effectively. As a result, 69% of CEOs surveyed say their growth strategy is focused more on strengthening the existing business than on rapid market expansion, signaling a preference for steady, sustainable growth amid continued uncertainty.

Nearly all CEOs (96%) plan to pursue some form of transaction in the next 12 months. In addition to acquisitions (51%), leaders are actively pursuing strategic alliances (60%) and joint ventures (47%). Additionally, CEOs are prioritizing divestments, as organizations look to release capital, reduce complexity and sharpen strategic focus with 51% planning to pursue a divestment in the next 12 months (+9% since May 2026 and +19% year-on-year).

AI adoption is also expanding across transactions, with 46% of CEOs surveyed piloting AI in selected activities, while 45% report using it across multiple or most transaction activities. Respondents see the greatest opportunity in using AI to identify value earlier (45%), improve decision-making and accelerate deal execution (35%), helping organizations identify opportunities earlier and invest more effectively. The priority for CEOs is to create a business that can respond quickly as markets and technology continue to change.

Guerzoni says: “Growth increasingly depends on portfolio discipline by using acquisitions, partnerships and divestments to build capability, deploy capital and respond faster. But as AI reshapes business, portfolio choices cannot be made in isolation. The real competitive divide will be between those that merely adopt AI and those that use it to create lasting value by treating technology, talent and portfolio optimization as one strategic transformation agenda.”

To read the full report, please visit: https://www.ey.com/en_gl/ceo/ceo-outlook-global-report

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About the survey

The Global EY organization conducted an anonymous online survey of 1,200 CEOs from large companies around the world between August and September 2026. The survey aimed 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 (19%), US$500m–US$999.9m (20%), US$1b–US$4.9b (31%) and greater than US$5b (30%).