Just 17% of Irish CEOs have seen revenue rise after implementing AI

The survey also found that 23% of CEOs said AI implementation has delivered cost reductions over the last year. File photo

Less than one in five Irish chief executives have seen revenue increase following the implementation of AI in their business as pessimism about revenue growth over the coming year grows, a new survey has found.

According to the latest PwC Global CEO Survey, just 17% of Irish chief executives say AI has delivered increased revenues in the past 12 months while 23% said it has delivered cost reductions in that time.

In addition, just 8% of Irish chief executives report AI application across a range of business areas including demand generation, products/services/experiences and strategic direction setting.

For this research, PwC surveyed 4,454 CEOs in 95 countries and territories, including 57 from Ireland, between September 30 and November 10 last year.

Confidence in Ireland’s future economic growth has also fallen among Irish chief executives with 63% saying it will improve in the year ahead — down from 74% last year.

Over half, 51%, of Irish chief executives are concerned about whether their business can keep pace with the rate of technological change.

The survey also found that just 26% of Irish chief executives are confident about revenue growth in 2026, which is down from 43% recorded last year.

When it comes to external risks, 27% said their organisation is “extremely or highly exposed to macroeconomic volatility” while 7% said their organisation is highly exposed to the risk of significant financial loss from tariffs.

Around a quarter, 23%, said the imposition of tariffs will reduce net profits in the next 12 months.

Innovation

Managing partner at PwC Ireland, Enda McDonagh, said the uncertainty that continues to surround global trade and geopolitics means Irish businesses “cannot afford to focus narrowly on short-term activities”.

“Reinvention and innovation must move to the top of the agenda as essential strategies for long-term viability and competitiveness.” 

The survey found that 47% of Irish chief executives said their company has begun competing in new sectors or industries over the past five years with 14% saying they plan to invest in the technology sector.

Partner at PwC Kieran Little added that the survey shows “Irish companies are more cautious on their approach to innovation” than their global counterparts.

Just 9% of chief executives say their organisation tolerates high risk in innovation projects, has disciplined processes to stop underperforming initiatives, or operates a defined innovation centre or corporate venturing function. This compares to 24% of all CEOs surveyed.

Less than one in three, 32%, consider innovation to be vital to their business strategy, far behind global counterparts at 50%.

“The companies that succeed will be those willing to make bold decisions and invest with conviction in the capabilities that matter most to reinvent their business model,” Mr Little added.