UK chief executives step up M&A activity to accelerate AI capabilities
UK chief executives are pursuing more mergers and acquisitions to support artificial intelligence transformation, with 87% expecting their appetite for deals to rise over the next 12 months, according to research by EY-Parthenon.
Among UK respondents, 69% are actively pursuing M&A, 63% are considering strategic alliances, and 42% are exploring joint ventures. The shift reflects a change in dealmaking strategy: executives are targeting specific goals rather than growth for scale alone.
Technology and AI rank as top acquisition drivers. When assessing acquisitions or divestments, 46% of UK CEOs cited enhancing technology or AI capabilities as a leading consideration, just ahead of strategic fit with long-term growth priorities at 45%.
Domestic market takes priority
UK executives identified their home market as the top priority for growth. The United States, Germany, France, and India followed as secondary targets.
The UK's appeal extends beyond domestic leaders. In global results, CEOs ranked the United States as the leading M&A destination, followed by India and the UK-a position EY-Parthenon attributed to the country's regulatory clarity and sector strength in consumer goods, energy, life sciences, defence, and wealth management.
Confidence amid risks
Eighty-seven percent of UK CEOs expressed confidence about the year ahead, while 78% remain optimistic about their organisation's profitability. That confidence is translating to investment plans: 85% feel positive about their ability to invest in emerging technologies.
Geopolitical tensions dominate risk assessments. More than half (54%) ranked geopolitical instability as a first- or second-priority risk over the next 12 months. Cybersecurity followed at 37%, macroeconomic volatility at 26%, and talent shortages at 21%.
In response, leaders are strengthening financial resilience through cost discipline and capital reallocation (23% of respondents), while 19% are accelerating digital and AI investment. Eighty-eight percent said disciplined growth and a clear path to profitability matter more than rapid market expansion.
AI investment accelerates
Nearly three-quarters of UK CEOs (74%) plan to increase AI investment this year compared with 2025. The focus is shifting from limited trials to wider deployment in core business functions.
The most measurable effects so far have appeared in strategy and decision-making (43%) and customer service (37%). Those gains are prompting workforce changes: 43% of UK CEOs expect to redesign roles to combine human and AI work over the next three years, 42% plan large-scale reskilling and upskilling, and 38% expect to increase hiring for AI, data, and digital roles.
Executives are moving beyond technology spending alone. Leaders increasingly focus on how human skills combine with technology to deliver AI value, shifting emphasis toward role redesign, capability building, and operating models where human and AI strengths work together.
The research surveyed 1,200 CEOs globally, including 100 in the UK, from large companies across 21 countries and five industry groups. In the UK sample, 69% represented publicly listed companies, and 45% led businesses with annual revenue exceeding USD 1 billion.
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