EY: CEOs Double Down on AI and M&A to Drive 2026 Growth

Against a backdrop of global economic uncertainty, heightened geopolitical tensions, market volatility and persistent cost pressures, business leaders are navigating complex strategic decisions and operational transformations to maintain performance and agility.

This forward-focused lens is front and centre at the World Economic Forum (WEF) in Davos, where Microsoft CEO Satya Nadella explored how AI continues to redefine the global economy’s technological trajectory.

Meanwhile, Amazon CEO Andy Jassy addressed the non-digital forces shaping business outcomes, offering a frank assessment of how President Trump’s tariffs are influencing Amazon’s pricing strategies and operational resilience.

Beyond these tech giants, global executives are adopting digital-first strategies to stay on course amid macroeconomic challenges.

Insights from an EY-Parthenon CEO Outlook Survey reveal that leaders remain optimistic about their own organisations’ technological and financial prospects – even as their confidence in the broader global economy declines.

Surveying 1,200 global CEOs across 21 markets, the EY-Parthenon CEO Confidence Index recorded a dip in sentiment from 83.0 in Q3 2025 to 78.5 in Q4 2025.

Measured on a 1–100 scale, the index highlights a cautious yet determined approach to growth, with many companies doubling down on digital transformation to sustain momentum in a disruptive climate.

CEO confidence remains

Nine in 10 executives expressed confidence in their ability to drive performance from within, forecasting that revenue growth and productivity gains will underpin profitability throughout 2026.

While 61% acknowledge these ambitions will likely push up operating costs, leaders remain prepared to take decisive action to sustain organisational momentum and digital competitiveness.

The survey shows that CEO respondents are more likely to accelerate investments in response to geopolitical or trade policy developments at 40%, than:

• Delay (31%)
• Stop investment activity (10%)

EY Global Chair and CEO Janet Truncale 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 organisation and across industries to create new value.”

The power of AI

AI adoption continues to mature, with EY highlighting its transition from a complementary tool to a fundamental component of modern business models.

The survey reveals that 58% of CEOs now view AI as a primary growth engine for the next two years, while 32% believe it will play a transformative role in reengineering core operations as organisations scale these technologies enterprise-wide.

In parallel, more than half of respondents report they have already launched major digital transformation programmes in 2026 and a further 45% plan to initiate similar initiatives aimed at enhancing business value and technological resilience.

Global Vice Chair of EY-Parthenon, Andrea Guerzoni, says: “Despite the hype around outsized 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.”

He adds that this reflects the fact that CEOs “are taking a realistic and pragmatic view on the need to add new skillsets”.

Mergers and acquisitions as a tool for CEOs

Mergers and acquisitions are increasingly becoming a core pillar of CEO strategy, with 79% of respondents planning joint ventures or strategic alliances in 2026 – up 17% from the previous year.

However, this momentum comes with a clear awareness of the shifting business landscape.

According to the survey, 83% of CEOs have adjusted their strategic investments over the past 12 months in direct response to trade policy changes, while 40% report accelerating investment activity for the same reason – underscoring the growing link between geopolitical developments, digital transformation and long-term value creation.

“2026 is not going to be a year of certainty, and CEOs know this,” Andrea adds.

“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 maximise opportunities presented by ongoing market volatility.”