Irish CEOs shift investment strategy in response to trade uncertainty, says study

'Irish businesses adapting to a more fragmented global landscape'

EY-Parthenon head of strategy Helena O'Dwyer said Irish businesses are adapting to a more fragmented global landscape

Nine out of 10 leaders in Irish companies have revised their investment strategies in response to tariff and trade fears and continues global uncertainty, according to research carried out by EY.

The EY CEO Outlook Survey surveyed 1,200 executives globally and was undertaken in March and April in the immediate aftermath of the introduction of global tariffs by the US administration. It found that 57% of Irish business leaders now see geopolitical disruption as the number one threat to growth. This compared to 42% of international CEOs who said the same. 

Some 90% of business leaders surveyed in Ireland said they have revised investment strategies, including 73% who have delayed a planned investment and 8% who have stopped a planned investment entirely. 

 “The findings show just how quickly Irish businesses are adapting to a more fragmented global landscape. CEOs are not waiting around for an ideal moment or future resolution, they’re taking the initiative now with the things they can control, making smart bets, and maintaining momentum," said Helena O’Dwyer, head of strategy at EY-Parthenon Ireland.

The survey found that Irish CEOs are less inclined to pursue mergers and acquisitions (M&A) this year, with just 38% indicating plans to do so, well below the global average of 57%. Among the Irish companies that are pursuing M&A, almost half (47%) said they are prioritising deals that bring in new technology or intellectual property.

Interestingly, Irish CEOs reported they are holding firm on diversity, equity and inclusion (DE&I), despite challenges presented by the Trump admistration. According to the research, 83% say they are maintaining or strengthening their DE&I commitments, including embedding it into leadership accountability, workforce policy and business performance – compared to 75% of their global peers.

 “What’s clear from the data is the vast majority of CEOs aren’t treating DE&I as a tick-box exercise or a reputational add-on. They see it as part of how they manage risk, meet compliance expectations and build stronger, more competitive organisations," Ms O'Dwyer said.

Some 40% of survey respondents said that they are now prioritising developing in-house AI expertise and governance. A further 40% said they have increased AI spending.