Our survey reveals Irish chief executives are demonstrating strong confidence in the local and global economy and have significant plans to invest in AI and talent. Meanwhile confidence in the three-year prospects for the Irish economy remains strong, with 90 per cent of respondents anticipating economic growth over the period.
Ten years has passed since our first global CEO Outlook survey. Irish businesses have survived and thrived in a decade characterised by volatility, ranging from Brexit and the economic and social shocks of Covid to the surge in inflation, interest rates and geopolitical tensions. In the face of this, leaders have had to adapt to an unprecedented set of challenges that have not only placed greater pressure on chief executives’ shoulders but highlighted the ever changing tech context against which decisions are required.
Despite this complexity, 93 per cent of chief executives in Ireland (up from 73 per cent last year) are optimistic about the future prospects of the companies they lead in terms of predicted growth over the next three years, labour shortages, cost pressures and geopolitical complexity. This confidence is also demonstrated in chief executives future hiring plans with ninety-seven per cent of Irish chief executives stating that they expect to increase headcount in the next three years.
In the context of a volatile geopolitical environment, Irish chief executives say supply chain issues rank as the biggest single concern for business leaders reflecting the highly global and open nature of our economy.
According to Seamus Hand, managing partner of KPMG in Ireland, “It’s great to see the continuing confidence of Irish CEOs when it comes to the growth prospects of their companies and our economy over the next three years. While there are risks such as cost pressures, increasing regulatory complexity and geopolitical uncertainty, the resilience and underlying strength of the economy remains strong.”
The AI advantage
Sixty-seven per cent of Irish chief executives agreed that generative artificial intelligence (GenAI) remains a top investment priority and expect it to be a key enabler of future growth. The majority of Irish chief executives (70 per cent) believe GenAI will create more jobs than it displaces in the Irish labour market versus only 23 per cent of their peers worldwide.
While Irish chief executives see GenAI primarily as an opportunity, they remain aware of the risks that come with the speed of development in this space including ethical risks, regulatory complexity and transformation challenges. They also show a clear awareness of the need to future proof the skills of their teams and demonstrate increased employee value proposition to attract and retain talent.
What people do at work and how they do it is linked to technology like never before. Ninety-three per cent of Irish chief executives are concerned about the challenges of ensuring their workforces are upskilled with the technical capabilities and skills required to leverage GenAI adequately, compared with 65 per cent of business leaders globally. The debate about hybrid working continues for chief executives, with 90 per cent of Irish chief executives (and 83 per cent globally) believing there will be a return to pre-pandemic ways of working within the next three years.
Commenting on the survey findings, Hand says: “Irish CEOs are leading the way globally in seeking to prepare for and realise the AI opportunity. The speed of development in this exciting space means that leaders need to be at the forefront of embracing GenAI in their business operations, but equally recognise the technical, regulatory and operational threats that come with putting their AI strategies into practice.
It’s encouraging to see that chief executives continue to recognise that people are at the heart of getting the most out of AI, both in terms of building relevant skills, enhancing workforce capability and putting the right controls in place to ensure trust can be maintained in the technology.”
ESG concerns on the rise
When it comes to business commitments to decarbonising their operations, 40 per cent of Irish chief executives are not confident they will meet net-zero goals by 2030 and 71 per cent are not yet prepared to withstand the potential scrutiny and expectations of stakeholders
Meanwhile only 60 per cent of chief executives in Ireland say they have the capability and capacity required to meet new ESG reporting standards. For the second year running this is lower than the global average of 76 per cent and is becoming a more immediate concern given mandatory reporting requirements.
In summary, our insights show robust optimism from chief executives in Ireland. However they recognise that it’s not all plain sailing. Geopolitical concerns continue to impact their thinking whilst they contemplate how best to take advantage of AI. They are concerned about the need to reskill their teams but based on their hiring ambitions, continue to put people at the heart of their strategies. As we contemplate the opportunities in store for 2025, we look forward to working with Irelands most ambitious chief executives and their teams to help them deliver on their ambitions.
Discover more about what Irish chief executives are really thinking and how it compares with their global counterparts at kpmg.com/ie