A report by business-services firm KPMG has found that Irish business leaders are generally optimistic about the economic outlook, and about the potential of artificial intelligence (AI).

The KPMG CEO Outlook finds that most Irish chief executives believe that their firm is well-prepared for a cyber-attack.

Risks to supply chains, however, are seen as the biggest threat to growth.

The KPMG research also finds that a growing number of business leaders believe that there will be a return to pre-pandemic ways of working within the next three years.

AI prioritised for growth

On growth and the economy, 90% of chief executives are confident about the three-year outlook for the Irish economy, while 97% expect to increase staff numbers in that period.

Asked about their priority to achieve growth targets over the next three years, understanding and implementing generative AI across the business was cited by 27% of Irish business leaders north and south. This compared with only 13% of chief executives worldwide.

Almost 70% of leaders globally report that ethical issues are the biggest challenge in implementing generative AI in their organisations – an increase from 57% in 2023.

This figure rises among Irish CEOs south and north of the border, with 87% and 77%, respectively, reporting ethics concerns.

Only just over a quarter in the Republic agreed, however, that their organisation was equipped to upskill employees to fully leverage the benefits of generative AI.

“CEOs in Ireland are very ambitious to take advantage of AI and related technologies, even more so than their global counterparts,” said Seamus Hand (KPMG Ireland managing partner).

“The challenge of attracting the right people and capabilities to make the most of these opportunities is highlighted as a risk,” he added.

Office roles

Among business leaders in the Republic of Ireland, 73% believe that their firm is well-prepared for a cyber-attack, but this falls to 53% in the North.

KPMG also asked respondents how they envisioned the working environment in three years’ time for corporate employees whose roles were traditionally based in-office.

More than 80% of chief executives worldwide foresaw their teams in the office, compared with 90% in the Republic of Ireland and 80% in the North.

On ESG (environmental, social and governance) issues, 40% of Irish business leaders said that they were not confident of meeting their ‘net zero’ carbon-emission goals by 2030.

Only 60% believed that they had the internal ability to meet ESG reporting standards.