Research from the Irish Management Institute reveals a skills shortage among senior business leaders preparing for Ireland's AI-enabled future.
The IMI Leadership Barometer surveyed senior business leaders, including CEOs and MDs, and found only one in four business leaders feel they have the right skills and capabilities to harness the potential of AI within their organisation.
The main barrier to navigating an AI future was found to be uncertainty (39%), indicating a pervasive lack of knowledge in the business community regarding the potential applications and impact of this technology.
Lack of capabilities to drive change (36%) was also identified as a major obstacle, with leaders believing their workforce lacks critical skills to enable digital transformation.
The survey also showed business leaders are unsure about the trajectory of the economy with 47% saying they are uncertain whether the economy will grow in the next 12 months. With inflationary pressures still strong and costs increasing, a further 36% of leaders believe the economy is likely to contract in the next year.
Looking ahead, the majority of leaders felt overcoming skills and talent shortages (59%) to be the key factor for future business success – a persistent challenge in an exceptionally tight labour market.
Leading digital transformation (27%) was also deemed critical for future success unsurprisingly, with leaders keen to harness the potential productivity boom created by AI and other emerging technologies.
Only 9% of business leaders consider advancing the ESG agenda to be critical for future success.
Shane O’Sullivan, Interim CEO of the IMI, said the barometer provides an important insight into how senior leaders are responding to emerging technologies and a changing economic environment.
"With ongoing advances in AI and disruptive digital technologies, the fact that only 25% of business leaders feel they have the necessary skills in place to support these changes is of significant concern. Top-down leadership is critical for driving this fundamental transformation of how we work," he said.
"Otherwise, we cannot harness the powerful productivity gains of AI and other digital technologies," he added.
"Business leaders must consider a lifelong learning approach to equip themselves with the right skills, capabilities and knowledge," he said.
Lack of capabilities to drive change (36%) was also identified as a major obstacle, with leaders believing their workforce lacks critical skills to enable digital transformation.
The survey also showed business leaders are unsure about the trajectory of the economy with 47% saying they are uncertain whether the economy will grow in the next 12 months. With inflationary pressures still strong and costs increasing, a further 36% of leaders believe the economy is likely to contract in the next year.
Looking ahead, the majority of leaders felt overcoming skills and talent shortages (59%) to be the key factor for future business success – a persistent challenge in an exceptionally tight labour market.
Leading digital transformation (27%) was also deemed critical for future success unsurprisingly, with leaders keen to harness the potential productivity boom created by AI and other emerging technologies. Only 9% of business leaders consider advancing the ESG agenda to be critical for future success.
Shane O'Sullivan, Interim CEO of the IMI, said the barometer provides an important insight into how senior leaders are responding to emerging technologies and a changing economic environment.
"With ongoing advances in AI and disruptive digital technologies, the fact that only 25% of business leaders feel they have the necessary skills in place to support these changes is of significant concern. Top-down leadership is critical for driving this fundamental transformation of how we work. Otherwise, we cannot harness the powerful productivity gains of AI and other digital technologies.
Business leaders must consider a lifelong learning approach to equip themselves with the right skills, capabilities and knowledge," he said.
The research was released to coincide with the IMI's National Leadership Conference, which brings together business leaders from across Ireland.
