Almost half of chief executives have stopped or delayed an investment due to current geopolitical or trade dynamics, according to a new report from EY.
The latest EY chief executive Outlook, which surveyed 1,200 globally, including 40 in Ireland, also found 28 per cent accelerated an investment on the same grounds, while 5 per cent exited a country and 40 per cent shifted suppliers to different markets.
“These shifts demonstrate how CEOs are balancing caution with decisive action as they prepare their organisations for a more unpredictable economic landscape,” noted the report.
Half of Irish chief executives said their organisations are already in significant company-wide transformation programmes, while the rest plan to initiate one in the year ahead.
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“These programmes are increasingly focused on reshaping the core of the business,” stated the report.
In Ireland, half cited cost reduction as a key priority, while 46 per cent said they are prioritising improvements in customer engagement.
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Some 44 per cent are working to accelerate progress on sustainability, and 20 per cent are driving operational optimisation and productivity, including digitisation, as a top priority.
Rising costs, geopolitical friction, and regulatory complexity are intensifying operating pressures for Irish businesses. Two-thirds of chief executives expect operating costs to rise this year, reflecting ongoing wage inflation, energy volatility and increased regulatory demands.
Some 30 per cent of leaders said their artificial intelligence (AI) initiatives have delivered significantly above expectations, while another 55 per cent said results were somewhat above expectations.
“Early benefits identified are emerging across customer operations, software development, risk and compliance automation and forecasting,” noted the report.
Looking ahead, 98 per cent expect AI to have a transformative or significant impact on their business model within two years, with generative AI (48 per cent) and machine learning (45 per cent) expected to play the largest roles.
Cybersecurity remains the biggest concern when prioritising AI investments, cited by 30 per cent of Irish chief executives. Despite cost pressures, 60 per cent of them plan to maintain or increase hiring in 2026, particularly in roles that support artificial intelligence, data, cyber and technology integration.
Organisations are accelerating reskilling and redeployment to meet transformation demands. Priority skills include data and AI, cyber resilience, cloud engineering, transformation, and regulation.
Deal making is also rising sharply. Some 98 per cent of Irish chief executives plan to pursue at least one transaction initiative in the next 12 months, including mergers and acquisitions (50 per cent), joint ventures or strategic alliances (68 per cent), or divestments (15 per cent).
The top three key motivators cited by them are accelerating growth, acquiring new capabilities, particularly in AI and cybersecurity, and strengthening customer reach.
Irish leaders are positive about the year ahead, with the majority (78 per cent) expecting overall business performance to improve in 2026 compared with 2025.
Confidence also extends to financial outcomes, with 61 per cent anticipating an uplift in profitability and 48 per cent expecting productivity to rise.
