Executives Turn to AI and Company Acquisitions for Expansion Despite Mounting Economic Pressures
CEOs are betting big on artificial intelligence and strategic buyouts to fuel growth—even as economic headwinds intensify. Forget organic scaling; the new playbook involves algorithms and acquisitions.
The AI Arms Race
Corporate leaders aren't just dabbling in machine learning—they're deploying it to slash operational costs, automate decision-making, and outpace competitors. Think predictive analytics for supply chains, AI-driven customer service, and algorithmic risk management. One Fortune 500 tech officer called it 'the ultimate leverage in a tight market.'
Acquisition Frenzy
Why build when you can buy? Companies are snapping up smaller firms to instantly capture market share, proprietary tech, and talent pools. These aren't just mergers; they're strategic raids for innovation. The trend cuts across sectors—from fintech to biotech—as executives seek shortcuts to revenue streams.
The Pressure Cooker
Inflation, supply chain snarls, and volatile capital markets are forcing bold moves. Traditional growth strategies look sluggish. 'Waiting for market conditions to improve is a luxury nobody has,' noted a hedge fund manager, before adding the requisite cynical finance jab: 'Besides, it's easier to justify a bad acquisition than a year of mediocre earnings.'
High-risk, high-reward? Absolutely. But in today's economy, standing still is the riskiest move of all.
Two-thirds plan to maintain or grow workforce
Corporate leaders increasingly see AI as a reliable tool for boosting productivity, revenue, and getting work done faster, according to EY. More than two-thirds expect to keep current staffing levels or bring on additional workers during the coming year as they pour money into AI systems.
Many executives are also pursuing company purchases to speed up their digital transformation, improve how things get done, and advance technology adoption.
Though governments are watching deals more closely and changing how they get structured, the appetite for investments stays strong. Some 79% of those surveyed are planning initiatives in 2026.
Trust gap holds back AI deployment
But serious doubts remain about how far companies will let AI systems operate on their own. Separate research from Harvard Business Review Analytic Services, backed by Workato and Amazon Web Services, found that only 6% of firms completely trust AI to run their most important business operations without supervision.
The Harvard study gathered responses from 603 business and technology leaders worldwide in July 2025. It shows a sharp divide between excitement about AI and willingness to deploy it for critical work.
Among those surveyed, 43% said they trust AI systems only for basic or repetitive tasks. Another 39% limit them to monitored situations or less important processes. Companies seem willing to test things out but hesitant to hand over decisions affecting money, customers, or employees.
Still, adoption moves quickly. 9% of organizations report full deployment of AI systems that can act on their own, and half are testing or exploring potential uses. Only 10% decided against moving forward after initial review. Looking ahead, 86% expect to increase spending on such AI systems over the next two years.
Companies acknowledge gaps in preparation, though. Just 20% say their technology setup fully supports AI for Core work. Only 15% report ready data and systems, and just 12% feel their risk controls are adequate. Using combined measures of infrastructure, data, cybersecurity, and oversight, researchers classified 27% of organizations as leaders, 50% as followers, and 24% as laggards.
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