UK CEOs step up M&A to accelerate AI transformation and long term growth

UK CEOs are increasingly using mergers and acquisitions (M&A) to accelerate AI transformation and drive long‑term value creation, signalling growing confidence in dealmaking despite ongoing global uncertainty, according to the latest EY‑Parthenon CEO Outlook.

The survey, which interviewed global CEOs including 100 in the UK, found that almost nine in ten UK CEOs (87%) expect their organisation’s appetite for M&A activity to increase over the next 12 months, signalling growing confidence in using transactions to accelerate strategic priorities.

Strategic deals support long‑term growth

Over two-thirds (69%) of respondents said they are actively pursuing M&A activity over the next 12 months with 63% also looking at strategic alliances, followed by joint ventures (42%).

The results found that, rather than pursuing scale alone, UK CEOs are prioritising targeted, value‑led deals. When assessing acquisitions or divestments, the top two considerations identified were enhancing technology or AI capabilities (46%) and strategic fit with long-term growth priorities (45%).

UK CEOs are prioritising domestic growth alongside global expansion with the UK identified as the leading priority growth market, followed by the United States, Germany, France and India.

The UK also featured prominently in the global survey results, with global CEOs citing the US as the leading destination for planned M&A activity, followed by India and the UK.

Silvia Rindone, EY UK&I Managing Partner for EY-Parthenon commented: “Despite global turbulence, UK CEOs are approaching M&A with renewed confidence and clear strategic intent, using targeted deals to accelerate technology transformation, strengthen AI capabilities and build long‑term value.

“As activity gathers pace, the UK continues to stand out as a priority for growth, supported by a clear and efficient regulatory environment and strong sector appeal across consumer, energy, life sciences, defence and wealth management. This momentum reinforces the UK’s position as a leading global destination for capital, placing M&A at the heart of the next phase of business growth.”

UK business leaders act with confidence despite geopolitical headwinds

Despite ongoing geopolitical uncertainty, 87% of UK CEOs said they are confident about the outlook for the year, while 78% remain optimistic in their organisation’s profitability. This is translating into action, with 85% of respondents feeling positive in their ability to invest in emerging technologies as they prioritise long‑term value creation over rapid expansion.

Despite this confidence, the survey found that UK business leaders are proactively responding to multiple headwinds impacting their organisations. Over half (54%) said geopolitical tensions, instability and conflict was their first or second priority risk to their business in the next 12 months, followed by cybersecurity (37%), macroeconomic volatility (26%) and talent shortages (21%).

In response, organisations are adapting their strategies by strengthening financial resilience through cost discipline and capital reallocation (23%) and accelerating digital and AI investment (19%) with most (88%) saying that disciplined growth and a clear path to profitability are more important than rapid market expansion in the current environment.

AI shifts from experimentation to enterprise impact

Nearly three‑quarters (74%) of UK CEOs said they plan to increase AI investment this year when compared to 2025, signalling a decisive shift from pilots to scaled deployment.

CEOs said the most measurable enterprise-level impact of AI in their organisation has been in strategy and decision-making (43%) and customer service and experience (37%).

UK CEOs are also examining how to adapt their workforce strategies to harness AI. Over the next three years, leaders said they will be redesigning roles to combine human and AI capabilities (43%), investing in large‑scale reskilling and upskilling (42%) and increasing hiring for AI, data and digital roles (38%).

Silvia Rindone added: “Alongside continued investment in technology, UK CEOs are increasingly focused on how human skills can be combined with technology to unlock the full value of AI. The emphasis is now shifting towards redesigning roles, building new capabilities and developing operating models where human and AI strengths work together effectively.

“This is not simply a reskilling challenge, but a strategic one. Organisations that invest early in talent, culture and leadership – while using M&A activity to access technical expertise – will be better placed to drive productivity gains, manage change and sustain long‑term growth in an AI‑enabled economy.”