Geopolitical uncertainty is actively reshaping business decision making, with 46% of CEOs halting or delaying investments, 28% accelerating them and 40% shifting suppliers to different markets.
These are the findings of the latest EY CEO outlook, which surveyed 1,200 executives globally, including 40 Irish leaders.
Rising costs and regulatory complexity are also intensifying pressures for Irish businesses – 65% of CEOs expect operating costs to rise this year, reflecting ongoing wage inflation, energy volatility and increased regulatory demands.
Irish CEOs are responding to these challenges "with urgency," according to partner and head of strategy at EY Parthenon Ireland Helena O'Dwyer.
"Leaders are pushing ahead with major transformation programmes, from adopting AI to strengthening cyber security and redesigning how their organisations work," Ms O'Dwyer said.
Artificial intelligence has moved from experimentation to core strategy for Irish CEOs, with 98% of the respondents expecting AI to have transformative or significant impact on their business model within two years.
Cybersecurity remains the biggest concern when prioritising AI investments, cited by 30% of Irish CEOs.
When it comes to workforce plans, AI and digital transformation are also reshaping companies' hiring plans.
According to EY, 60% of CEOs plan to maintain or increase hiring in 2026, particularly in roles that support AI, data and cyber integration.
Among the skills prioritised by hiring companies are data and AI, cyber resilience and cloud engineering.
Irish companies are meeting the accelerating technological change "with confidence", according to EY's head of markets Carol Murphy.
In a bid to accelerate growth and acquire new capabilities most Irish CEO's are planning to pursue at least one transaction initiative in the next twelve months, including mergers and acquisitions (50%), joint ventures or strategic alliances (68%) or divestments (15%).
EY's survey reflects a positive outlook for the year ahead among Irish leaders, with 61% of those surveyed anticipating an uplift in profitability and productivity.
