A recent EY‑Parthenon global CEO Outlook Survey reveals a sweeping shift in leadership strategies, with 56% of CEOs now planning mergers or acquisitions in 2025—up sharply from 37% in late 2024. This marks the firm’s highest M&A appetite in nearly two years, signaling a surge in confidence and a renewed strategic commitment to capability-building, resilience, and innovation rather than size alone.
The study draws from insights gathered from 1,200 CEOs between March and April 2025, representing large corporations across twenty-one countries and various industries. It finds that the most optimistic leaders—70% of them—are propelling deals forward, compared to just 17% among less confident peers.
Generative artificial intelligence (AI) also emerged as a major growth lever. Survey respondents are scaling AI pilots into full deployments, integrating digital technologies and reskilling workforces to harness both human and machine capabilities . According to EY research published in December, 97% of senior business leaders reported a positive return on AI investments, and about one-third planned to allocate at least $10 million to AI next year.
Reflecting unsteady macroeconomic conditions, 96% of CEOs still plan some form of corporate transaction this year, including divestitures, joint ventures, carve‑outs, or IPOs. Notably, 60% anticipate a rise in mega‑deals—those valued above US$10 billion. Additionally, asset sales are on the rise, with 48% of respondents planning divestments or carve‑outs, up from 44% in late 2024.
Geopolitical factors are playing a significant role. Executives cite uncertainties surrounding global trade, technology controls, and supply chain fragility as motivators for M&A activity. Many see strategic transactions as opportunities to diversify operations and bolster risk defenses.
Talent emerges as an equally critical domain. Across the survey, 85% of CEOs indicated that addressing capability gaps and blending tech expertise with human skills are essential for sustainable success. Companies are focusing on upskilling and reskilling initiatives to support digital transformation efforts, especially in tandem with AI deployment.
Sector-specific analysis reveals real estate, technology, and consumer products as prime M&A targets. North America (Canada, the U.S., Mexico), the U.K., and Germany are highlighted as preferred destinations for deal‑making.
From a broader perspective, the rebound in deal-making reflects pent-up demand. According to a Reuters report, the uptick follows supportive macro trends, including easing U.S. borrowing costs and the anticipated pro-business stance of the newly inaugurated U.S. administration. CEOs are buoyed by improved economic sentiment—74% of them reporting confidence in growth prospects, up from the previous quarter .
EY’s report highlights five strategic behaviors CEOs should adopt in this evolving environment: embrace ongoing transformation, prioritize human-centered leadership, focus on long-term value, refine risk management, and leverage M&A as a transformational tool. These principles underline a shift from reactive adjustment to proactive strategic renewal.
The growing role of generative AI in deal-making is especially noteworthy. A Bain & Co survey referenced by The Australian notes that 21% of corporations are already using AI for M&A—such as identifying targets and performing due diligence—with another third expecting to adopt AI by the end of 2025. AI is also speeding up post-merger integration, potentially reducing transition workload by around 20%.
As AI becomes embedded throughout transactions, staffing models in investment banking and advisory may shift. Tools that automate early-stage tasks—deal sourcing, assessment, and data extraction—could redefine roles and reduce reliance on traditional manpower .
In summary, the EY survey captures CEO sentiment at a strategic inflection point. Corporate leaders are moving from defense to offense—channeling resources into M&A, AI, talent, digital integration, and sustainability initiatives to future-proof growth amidst economic and geopolitical headwinds.
For companies navigating this terrain, the message is clear: success in 2025 depends on integrating technology-driven capabilities, executing smart deals, and fostering the human capital that amplifies both. Those that align bold investment with disciplined strategy may well shape the next era of resilient, tech-enabled market leadership.
