Global business leaders are prioritising long-term growth, AI investment and strategic resilience despite mounting geopolitical instability and economic uncertainty, according to a new CEO survey.
CEOs worldwide are continuing to increase AI investment despite rising geopolitical instability, energy shocks, and macroeconomic uncertainty, signalling that artificial intelligence is becoming central to long-term corporate strategy rather than a short-term technology trend.
The new quarterly survey from EY-Parthenon, which gathered responses from 1,200 CEOs across 21 countries, found that 80% of executives plan to increase AI investment in 2026, while nearly half are pursuing acquisitions or divestments to strengthen AI and technology capabilities. Rather than retreating amid global instability, CEOs are prioritising profitability, operational resilience, and disciplined growth strategies built around digital transformation and AI-driven productivity.
CEO & AI ACCOUNTABILITY
The findings come as companies worldwide face increasing pressure to prove that massive AI investments can deliver measurable business outcomes while navigating regulatory complexity, geopolitical disruption, and workforce transformation.
A recent study on CEO AI accountability fears highlighted growing anxiety among executives over the risks of failed AI strategies, with many CEOs believing AI performance could directly impact their leadership positions.
AI RISKS & DRIVERS
Together, the reports reveal a defining contradiction emerging in the enterprise AI market: executives increasingly view AI as both an essential growth driver and a growing source of operational, regulatory and leadership risk. The key findings from the study show that:
- 80% of CEOs plan to increase AI investment in 2026
- 82% are prioritizing sustainable long-term growth over rapid expansion
- 56% identify geopolitical instability as their biggest business risk
- 48% are pursuing deals to strengthen AI capabilities
- 99% expect AI to reshape workforce strategies within three years
- Only 20% believe AI will reduce hiring
GEOPOLITICAL UNCERTAINTY & RISKS
According to the EY survey, geopolitical uncertainty has now become the single biggest business concern for many CEOs. More than half of respondents (56%) identified geopolitical instability as the most significant risk facing their organizations over the next 12 months — a sharp increase of 28 percentage points since September 2025.
Nearly half (46%) said sustained energy price shocks would create major operational and financial headwinds, underscoring how geopolitical disruption is increasingly affecting corporate decision-making and long-term planning. However, unlike previous economic crises, many executives are not responding by reducing investment or retreating from growth plans.
Instead, CEOs appear to be shifting toward more disciplined and selective investment strategies focused on profitability, resilience, and operational flexibility. According to the survey:
- 82% of CEOs said they are prioritising sustainable long-term growth over rapid market expansion
- Leaders are increasingly focusing on streamlined operations, workforce productivity, and financial flexibility
- Companies continue investing heavily in digital transformation and AI capabilities despite uncertainty
GROWING FOCUS ON GOVERNANCE & RESILIENCE
Andrea Guerzoni, Global Vice Chair of EY-Parthenon, said executives are adapting to what many now see as a permanently unstable business environment. “Despite the ‘fog of war’, CEOs are not scaling back,” noted Guerzoni. “Drawing from experiences over the last decade, risk and uncertainty is now more embedded in their decision making and they are sharpening their focus and ambition on where and how they invest for growth.”
The growing focus on resilience and governance mirrors broader corporate concerns surrounding AI risk management and responsible AI deployment. Earlier reports responsible AI business practices highlighted how enterprises are increasingly under pressure to implement governance frameworks capable of managing operational, ethical, and regulatory AI risks at scale.
ACCELERATING AI INVESTMENT
Despite fears of an AI investment bubble, the survey found that enterprise demand for AI capabilities remains exceptionally strong across industries and regions. According to the report:
- 80% of CEOs plan to increase AI spending in 2026
- Only 1% expect to reduce AI investment
- 48% are pursuing acquisitions or divestments to strengthen AI or technology capabilities
Executives reported that AI is already generating measurable business impact across several enterprise functions, including:
- Operations (41%)
- Customer value creation (42%)
- Innovation (40%)
- Corporate strategy (41%)
Meanwhile, 83% of CEOs said they remain optimistic about investment in emerging technologies. The findings reinforce a growing shift in enterprise strategy: AI is increasingly being treated as core business infrastructure rather than an experimental innovation initiative.
As previously reported, CEOs worldwide already expect enterprise AI investment to more than double over the next two years despite mounting concerns around ROI, implementation complexity and governance.
REGULATION & COMPLIANCE BARRIERS
While enterprise AI adoption continues to accelerate, many CEOs warned that fragmented and evolving regulations are becoming a major obstacle to scaling AI effectively. The survey found that:
- 30% of CEOs believe AI regulation is increasing operational and compliance complexity
- 38% cited fragmented global AI regulations as a major barrier to scaling AI systems
The concerns reflect growing uncertainty surrounding global AI governance as governments move toward stricter oversight of generative AI technologies, autonomous systems, and enterprise AI deployment.
Earlier coverage on AI governance frameworks highlighted increasing efforts by organisations to establish formal AI governance structures capable of balancing innovation with accountability and compliance.
AI: A WORKFORCE TRANSFORMATION TOOL
Despite widespread fears that artificial intelligence will eliminate jobs, the survey found that many CEOs currently view AI primarily as a productivity and workforce transformation tool rather than a direct replacement for employees. While 99% of CEOs expect AI to reshape workforce strategies within the next three years, the survey found that:
- Only 20% said AI would reduce hiring.
- That figure is down significantly from 46% in 2024.
- 42% expect large-scale reskilling and upskilling initiatives.
- 44% are redesigning jobs to combine human and AI capabilities.
However, executives also acknowledged growing concerns around AI talent shortages and leadership readiness. One in five CEOs identified limited AI and data skills – along with insufficient leadership capability to manage AI-driven transformation – as major workforce challenges.
AI NOT A SUBSTITUTE FOR HUMAN LABOUR
“CEOs do not currently see AI as a substitute for human labour,” Guerzoni said. “As AI becomes embedded across businesses, demand is rising for talent that combines deep domain expertise with AI literacy.”
The findings contrast with recent workforce anxiety surrounding AI-driven automation. A recent report on AI and employment trends found that many companies are increasingly linking workforce expectations and productivity targets directly to AI adoption. The survey also found that CEOs increasingly view mergers, acquisitions, and strategic partnerships as critical tools for strengthening AI capabilities and long-term competitiveness. According to the report:
- 89% of CEOs planning deals expect M&A activity to increase over the next year.
- 62% are actively pursuing acquisitions.
- 57% are focusing on strategic alliances.
- 45% are exploring joint ventures.
- 42% expect to pursue divestments.
ENHANCING AI TECHNOLOGY
Notably, nearly half of respondents (48%) said enhancing AI or technology capabilities was the most important factor influencing acquisition and divestment decisions. The US remained the leading destination for planned M&A activity, followed by India, the UK, Canada and Germany.
“CEOs are approaching deals as a strategic lever for long-term growth while retaining the flexibility to adapt in the near-term,” Guerzoni said. “Crucially, this is not about opportunistic expansion, but disciplined portfolio decisions, with CEOs prioritising transactions based on strategic alignment and sustainable growth.”
AI: AN ESSENTIAL LONG-TERM INFRASTRUCTURE
The survey suggests CEOs are shifting from aggressive post-pandemic expansion strategies toward more disciplined, resilience-focused growth models shaped heavily by AI and geopolitical uncertainty.
Rather than slowing investment, many executives appear to be treating AI as essential long-term infrastructure capable of improving operational efficiency, workforce productivity and strategic competitiveness. Several major themes are emerging from the findings:
- AI is increasingly viewed as core enterprise infrastructure rather than experimental technology.
- Geopolitical instability is reshaping investment, supply chain, and growth strategies.
- Companies are prioritising profitability and operational resilience over rapid expansion.
- AI capability is becoming a major driver of mergers, acquisitions, and strategic partnerships.
- Workforce transformation and AI reskilling are becoming central leadership priorities.
The report also suggests that enterprise AI adoption is becoming more selective and disciplined. Rather than pursuing AI deployment for visibility or competitive signaling alone, companies are increasingly focused on measurable operational impact and long-term strategic alignment.
INTEGRATING AI FOR GROWTH
For much of the past two years, AI investment was driven largely by urgency and competitive fear following the rapid rise of generative AI systems. Now, CEOs appear to be integrating AI into broader long-term transformation strategies focused on resilience, operational efficiency, governance and sustainable growth.
At the same time, growing geopolitical instability, regulatory fragmentation, and AI accountability concerns are forcing executives to rethink how they scale and govern AI technologies. The result is an enterprise AI market increasingly defined not by experimentation alone, but by disciplined execution, strategic integration, and long-term operational impact.
Clear here to download the full report.
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