Irish firms are less likely to see geopolitical uncertainty as a barrier to global growth, according to the latest Grant Thornton International Business Report (IBR).
52% of firms globally are concerned about potentially disruptive events compared to just 24% of Irish firms.
Grant Thorton said this lack of concern appears to be driven by the continued belief that geopolitical disruption is unlikely to bring any negative headwinds, despite the upcoming US presidential election in November.
Only 16% of Irish business surveyed saw it as a potential constraint, compared to a global average of 43% across the 10,000 global firms that took part in the research.
Today's research also shows that 66% of Irish companies surveyed envisaging a positive year ahead, down from 73% in the second quarter.
But while economic optimism amongst Irish organisations has slipped, it still ranks above the euro zone average of 63%.
Grant Thornton said a key factor impacting the level of optimism is an increase in the number of Irish firms seeing labour costs as a constraint on growth.
Companies are potentially still grappling with inflationary pressures from the cost-of-living crisis, with 74% of Irish mid-market firms expecting to pay salary increases over the next 12 months.
With the Irish economy effectively at full employment and skills shortages evident, it comes as no surprise that 56% of the firms surveyed stated that they plan to invest in upskilling their existing workforce.
Meanwhile, 44% of Irish medium sized businesses plan to invest in AI over the next year, with 29% of those doing so as a cost saving measure. 60% of those investing in artificial intelligence see AI technology as a means of improving internal workflows, the survey shows.
Grant Thornton Head of Deal Advisory Patrick Dillon said its latest report paints a unique picture of Ireland, with medium sized firms paying relatively little heed to potential economy uncertainty or geopolitical disruption over the months ahead.
"Perhaps buoyed by the state's healthy finances, this stands in contrast to our international peers, but we remain remarkably optimistic despite some concerns in relation to increased labour costs as a constraint on future business growth," Mr Dillon said.
"The research also reveals that Irish mid-market companies are eager to explore leveraging AI to bring about efficiencies and reduce costs. While a significant proportion of firms plan to invest in technology and R&D over the coming twelve months, the level still lags behind the global average," he said.
"Considering the benefits for the economy if more medium sized companies were to flourish, particularly in terms of international expansion, it would be wise for Irish businesses to double down on growth strategies now when the going is good," he added.
