Geopolitical risk reshapes boardroom agenda — EY report
•As CEOs prioritise growth, AI deals
By Peter Egwuatu
Geopolitical risks have moved to the centre of Chief Executive Officers’ (CEOs) priorities, with 56 per cent identifying it as the biggest business risk over the next 12 months, according to the latest EY-Parthenon CEO Outlook Survey.
The survey, released yesterday, covered 1,200 CEOs across 21 countries and showed that despite rising geopolitical and macroeconomic pressures, business leaders remain focused on profitability, resilience and long-term growth. About 82 per cent of CEOs said they now prioritise disciplined growth over rapid expansion.
“CEOs are focusing more on careful growth and long-term change using AI and smart business deals, even though there is more risk from world politics and the economy. In times of uncertainty and many problems happening at once, CEOs are not giving up. Instead, they want to make their businesses stronger and more profitable by growing carefully and learning from past problems,” the report stated.
The survey noted that 46 per cent of CEOs said high energy costs linked to geopolitical tensions are making business operations more difficult. However, rather than halting expansion plans, companies are becoming more selective in spending and investment decisions.
Olufemi Alabi, EY-Parthenon West Africa Leader, said: “Even with many challenges, CEOs in West Africa and beyond are not slowing down. They have learned from past problems and now plan carefully where to grow. They know the world is always changing, so they want to be ready for anything by growing in a smart and steady way.”
Artificial Intelligence (AI) also emerged as a major priority. The report said 80 per cent of CEOs plan to increase AI investments in 2026, while only one per cent intend to reduce spending. Nearly half, 48 per cent, said acquisitions and divestments are being driven by the need for stronger AI capabilities.
AI is already improving customer service, innovation, operations and strategic planning, while 83 per cent of CEOs expressed confidence in investing in emerging technologies.
“CEOs see AI as a tool to help workers do better, not replace them. 42% plan to train workers in new skills, and 44% want to change jobs so people and AI work together,” the report stated, although it warned that shortages of AI talent remain a challenge.
Alabi added: “CEOs in West Africa see AI as a tool to help people, not replace them. The real challenge is teaching workers new skills to use AI well.”
The report further showed that 89 per cent of CEOs expect to pursue more deals in the next year, including acquisitions, partnerships and joint ventures, with AI and long-term growth strategies driving most transactions.
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