Irish CEOs embrace AI and reinvention to navigate the changing business landscape

Business is being reinvented in record time but the tools are there to help you adapt, says PwC's David McGee

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David McGee, PwC

In association with PwC

In an era marked by rapid technological advancements and shifting geopolitical landscapes, Irish CEOs are at a pivotal juncture. The latest insights from our 2025 CEO Survey reveal a compelling narrative of optimism, innovation and resilience among Ireland’s business leaders. As they navigate the complexities of the modern business environment, these CEOs are leveraging AI and embracing business model reinvention to stay ahead of the curve.

The AI and sustainability imperative

Irish CEOs are acutely aware of the dual imperatives of AI and sustainability. With 94% expecting AI to be systematically integrated into business processes within the next three years, the commitment to technological advancement is clear. Generative AI (GenAI) is particularly promising, with half of the CEOs anticipating a boost in profitability within the next 12 months. This optimism is well-founded. AI is already enhancing operational efficiencies, with 44% of CEOs reporting improved employee time efficiency.

However, the integration of AI is not without its challenges. Responsible AI practices are crucial to managing risks such as inaccurate outputs and biased content. Building trust with stakeholders through transparent and responsible AI use is essential for long-term success.

Sustainability is another critical focus. As climate change reshapes markets, 76% of Irish CEOs feel exposed to its impacts. This has led to a significant shift in business strategies, with 40% of CEOs tying their incentive compensation to sustainability metrics. Despite regulatory complexities and financial constraints, the commitment to climate-friendly investments is evident, reflecting a broader trend towards sustainable business practices.

Reinventing business models for the future

The urgency for business model reinvention is also clear. Nearly a third of Irish CEOs believe their companies will not be viable in ten years without significant change. This sentiment is driving a wave of innovation, with 89% of CEOs focusing on product and service innovation and 79% exploring new market routes. The ability to dynamically reallocate resources is a key factor in successful reinvention, with high resource reallocation correlating with higher profit margins.

Irish CEOs are not just innovating within their existing frameworks. They are also venturing into new sectors. This expansion is driven by the need to stay competitive in a rapidly evolving market. The survey highlights that companies taking more reinvention steps report greater gains from AI, underscoring the mutually beneficial relationship between technological adoption and business model transformation.

Navigating a volatile environment with strategic foresight

Despite the uncertainties of the current business landscape, Irish CEOs remain optimistic. A remarkable 74% expect Ireland’s economic growth to improve in the coming year, up from 50% last year. This optimism extends to their own companies, with 93% expressing confidence in their revenue growth prospects.

Navigating this volatile environment requires strategic foresight and resilience. Geopolitical risk and macroeconomic volatility are significant concerns, with 88% of CEOs feeling the weight of global tensions. The ability to balance growth ambitions with risk management will be crucial in steering companies through these turbulent times.

The path forward: embracing change and innovation

The insights from our 2025 CEO Survey paint a complex yet hopeful picture of the future. Irish CEOs are embracing the challenges and opportunities presented by AI and sustainability, driving innovation and reinvention to secure their companies’ futures. As they continue to navigate the evolving business landscape, their commitment to strategic foresight, resilience and responsible AI practices will be key to their success.

The path forward for Irish businesses is clear: embrace change, innovate relentlessly and leverage technology responsibly. In doing so, you can thrive in the face of uncertainty, ensuring long-term growth and sustainability in an ever-changing world.

For more detailed insights, visit pwc.ie/ceosurvey

David McGee is a partner and ESG leader at PwC.