In an era marked by geopolitical instability, rapid technological advancements, and shifting economic landscapes, CEOs are increasingly adopting a mindset of continuous transformation to steer their organizations toward long-term value creation. The EY-Parthenon CEO Outlook Survey, conducted between November and December 2024, reveals a significant uptick in strategic deal-making and technological integration as key components of this transformative approach.
According to the survey, 56% of global CEOs plan to pursue mergers and acquisitions (M&A) in 2025, a notable increase from 37% in late 2024. This surge underscores a strategic pivot from reactive measures to proactive initiatives aimed at enhancing agility, fostering innovation, and building resilience. Furthermore, an overwhelming 96% of CEOs anticipate engaging in transactions such as initial public offerings (IPOs), joint ventures, or strategic alliances within the year, signaling a robust appetite for deal-making despite prevailing uncertainties.
“The most confident CEOs are especially likely to use M&A as a catalyst for transformation, seeking not just scale but strategic capabilities, innovation, and resilience,” notes the EY report.
A key driver behind this transformative momentum is the integration of generative artificial intelligence (AI) and other advanced technologies. Companies are transitioning from experimental phases to scaled implementations, recognizing AI’s potential to revolutionize business models and enhance productivity. Jason Noel, EY’s Chief Technology Officer for the Americas Consulting division, emphasizes that AI will augment human decision-making rather than replace it. “We’re thinking a lot about what we’re calling the next generation of enterprise applications—interfaces that present people with what they need based on their role, offer key AI insights, and let them act,” he explains.
Despite the enthusiasm for AI, challenges persist. EY’s AI Pulse Survey indicates that while 97% of senior business leaders report positive returns on AI investments, 83% acknowledge that inadequate data infrastructure hampers faster adoption. Additionally, 61% of leaders express growing interest in responsible AI practices, highlighting the need for robust governance frameworks.
Talent development remains a cornerstone of successful transformation. CEOs are prioritizing re-skilling and upskilling initiatives to unlock human potential and support digital integration. However, Noel cautions against overemphasis on technical training, suggesting that intuitive AI interfaces can empower employees without extensive retraining. “This idea of up-skilling the entire workforce to use AI—I think it’s kind of silly,” he remarks.
The survey also highlights regional disparities in CEO confidence. While optimism is rising in countries like the United States, United Kingdom, and China, concerns persist in regions such as France, Canada, and Singapore. Geopolitical uncertainties are prompting CEOs to reassess supply chains, market footprints, and operational risk management strategies.
In conclusion, the EY-Parthenon CEO Outlook Survey underscores a paradigm shift in executive leadership, with a growing emphasis on continuous transformation as a strategic imperative. By leveraging M&A, embracing technological advancements, and investing in talent development, CEOs aim to navigate the complexities of 2025 and beyond, positioning their organizations for sustainable growth and resilience.
