Register to get free articles
Want unlimited access? View Plans
Already have an account? Sign in
UK chief executives are increasingly using M&A to accelerate artificial intelligence transformation and drive long‑term growth, according to new research by EY‑Parthenon.
The survey of 100 UK corporate leaders found that 87% expect their appetite for M&A transactions to increase over the next 12 months, signalling growing confidence despite ongoing global uncertainty.
The data shows that 69% of respondents are actively pursuing M&A deals, while 63% are seeking strategic alliances and 42% are looking at joint ventures.
Rather than pursuing scale alone, corporate leaders are prioritising targeted, value‑led M&A transactions. The top considerations for acquisitions or divestments are enhancing technology or AI capabilities (46%) and strategic fit with long-term growth priorities (45%).
Executives are prioritising domestic growth alongside international expansion. Respondents named the UK as the leading priority growth market, followed by the US, Germany, France and India.
The UK also featured prominently in the global survey results. International chief executives cited the US as the top destination for planned M&A activity, followed by India and the UK.
Despite ongoing geopolitical uncertainty, 87% of UK corporate leaders said they are confident about the outlook for the year, while 78% remain optimistic about company profitability.
Geopolitical tensions and conflict represent the top risk for 54% of businesses over the next 12 months, followed by cybersecurity (37%), macroeconomic volatility (26%) and talent shortages (21%).
In response, organisations are strengthening financial resilience through cost discipline and capital reallocation (23%) and accelerating digital investment (19%).
Nearly three‑quarters of UK chief executives plan to increase AI investment in 2026 compared to 2025, signalling a shift from pilot schemes to scaled deployment.
Leaders said the most measurable impact of AI has been in strategy and decision-making (43%) and customer service (37%). Over the next three years, 43% plan to redesign roles to combine human and AI capabilities, while 42% will invest in large‑scale retraining.
EY UK and I managing partner, Silvia Rindone, said: “Despite global turbulence, UK CEOs are approaching M&A with renewed confidence and clear strategic intent, using targeted deals to accelerate technology transformation, strengthen AI capabilities and build long‑term value.
“As activity gathers pace, the UK continues to stand out as a priority for growth, supported by a clear and efficient regulatory environment and strong sector appeal across consumer, energy, life sciences, defence and wealth management. This momentum reinforces the UK’s position as a leading global destination for capital, placing M&A at the heart of the next phase of business growth.”
She added: “Alongside continued investment in technology, UK CEOs are increasingly focused on how human skills can be combined with technology to unlock the full value of AI. The emphasis is now shifting towards redesigning roles, building new capabilities and developing operating models where human and AI strengths work together effectively.
“This is not simply a reskilling challenge, but a strategic one. Organisations that invest early in talent, culture and leadership – while using M&A activity to access technical expertise – will be better placed to drive productivity gains, manage change and sustain long‑term growth in an AI‑enabled economy.”
