UK CEOs See AI Driving Major Business Impact Within Two Years

Nine in ten UK Chief Executives expect artificial intelligence (AI) to have a significant or transformative impact on their business models or operations over the next two years, according to the EY-Parthenon CEO Outlook 2026 survey.

The survey, conducted with FT Longitude among 100 CEOs of UK-based public and private companies, found that 57% of respondents are currently undertaking significant enterprise-wide transformation programmes, while a further 41% plan to begin one within the next 12 months.

AI and emerging technologies remain high on the investment agenda. Nearly all respondents (96%) expect to invest in emerging technology over the coming year, with 40% describing AI investment as critical to their organisation’s future resilience. At the same time, 62% believe AI investment will help maintain or increase employment levels over the next year.

CEOs also identified risks associated with AI adoption, with 36% citing cybersecurity concerns and 23% pointing to high upfront and running costs. EY-Parthenon urged business leaders to balance AI adoption with cybersecurity, regulatory considerations and workforce upskilling.

Beyond technology, 89% of CEOs expect their companies to achieve profitability growth in 2026, although 47% anticipate higher operating costs. Geopolitical and trade developments are also influencing capital allocation, with 78% having changed strategic investment plans over the past year.

Transaction activity remains another priority, with 99% of respondents planning a transaction initiative in the next 12 months. M&A, divestments, IPOs, joint ventures and strategic alliances are among the approaches being considered as CEOs seek access to new capabilities, technology and growth opportunities.