In an era marked by geopolitical tensions, technological disruption, and shifting economic landscapes, global CEOs are increasingly adopting a mindset of continuous transformation to navigate uncertainty and drive long-term value. The EY-Parthenon CEO Outlook Survey, conducted between November and December 2024, reveals a significant uptick in strategic deal-making and a heightened focus on leveraging advanced technologies, particularly generative AI, to foster agility and innovation.
According to the survey, 56% of CEOs plan to actively pursue mergers and acquisitions (M&A) in 2025, a notable increase from 37% in late 2024. This surge in deal appetite reflects a strategic shift among business leaders who view M&A not merely as a growth mechanism but as a catalyst for transformation, enabling access to new capabilities, markets, and technologies. Notably, 60% of CEOs anticipate an increase in transactions exceeding $10 billion, signaling a robust environment for large-scale deals.
The resurgence in M&A activity is underpinned by several factors, including easing borrowing costs in the U.S. and expectations of more business-friendly policies following the 2024 U.S. presidential election. These developments have bolstered CEO confidence, with the survey’s Global Confidence Index rising to 73.5% in January 2025, up from 70.5% in September 2024. This optimism is further reflected in the finding that 96% of CEOs expect to engage in transactions such as IPOs, joint ventures, or strategic alliances within the year.
Beyond deal-making, CEOs are increasingly turning to generative AI and other advanced technologies as pivotal tools for business model innovation and productivity enhancement. The survey indicates a shift from experimentation to scaled implementation of AI solutions, with companies recognizing the technology’s potential to reinvent operations and create competitive advantages. However, this rapid adoption is accompanied by challenges, including the need for robust governance frameworks to manage AI-related risks. A separate EY study highlights that while 72% of executives report integrating AI into most initiatives, only a third have established comprehensive controls to ensure responsible AI usage.
Talent management emerges as another critical focus area, with CEOs emphasizing the importance of re-skilling and upskilling to unlock human potential and support digital transformation. The survey underscores a growing recognition that sustainable growth is driven by personalized, value-driven customer experiences and engaged employees, rather than short-term financial gains. Consequently, organizations are investing in initiatives that place humans at the center of transformation efforts.
Geopolitical uncertainty remains a significant concern, prompting CEOs to reassess supply chains, market footprints, and operational risk management strategies. Regional dynamics reveal varying levels of confidence, with increased optimism in countries like the U.S., U.K., and China, while concerns persist in regions such as France, Canada, and Singapore. To navigate these complexities, CEOs are adopting five key behaviors: embracing continuous transformation, prioritizing human-centric approaches, focusing on long-term value, refining risk management practices, and leveraging M&A as a transformation catalyst.
As the business landscape continues to evolve, the findings from the EY-Parthenon CEO Outlook Survey suggest that organizations embracing a continuous transformation mindset—anchored in agility, innovation, and strategic foresight—are better positioned to thrive amid uncertainty and drive sustained value creation.
