Digital transformation involves the integration of digital technology into all business areas, reshaping operations, culture and customer experiences to meet changing market needs, improve efficiency, and create new value. But now, in the era of AI and other cutting-edge technologies, it goes far beyond the mere digitalisation of existing systems and processes and instead represents a complete redefinition of how businesses and markets work.
AI has completely changed the game, says Amy Ball, business model reinvention leader with PwC Ireland.
“Digital transformation started as the adoption of digital tools and systems but AI, including generative AI and AI agents, has accelerated and deepened the transformation by adding intelligence, adaptability and automation including autonomous decision making,” she says.
“AI has the ability to open doors to new opportunities and for those who use it properly, is completely changing how business is done through intelligent transformation and scaling AI agents enterprise wide.”
READ MORE
“Instead of adding more technology on top of clunky or slow processes, AI enables organisations to redesign how they operate, how decisions are made and how services are delivered, making interactions simpler, faster, and more personalised,” adds Katie Flood, EY Ireland business transformation partner.
“It moves transformation away from technology projects and towards redesigning services end to end, starting with the people who use them. AI allows businesses to remove outdated steps, simplify processes and reimagine the enterprise around clearer decisions, better risk management, and customer-focused outcomes.”
Indeed, Ball says AI agents can completely transform business models if scaled right across organisations, noting that more than half (54 per cent) of Irish respondents in PwC Ireland’s 2025 survey of AI agents said that how their organisation uses AI agents will give their business competitive advantage in the next 12 months. Strikingly, almost a third (29 per cent) said their operating model will be completely unrecognisable in two years’ time due to AI agent adoption.
Flood says Irish organisations are progressing quickly. “Like many markets, they are building foundations that enable AI to have real impact,” she says. “To transform effectively, they need clear decision-making structures, simplified processes, reliable data and strong cloud foundations so services are always available. Momentum comes from delivering small, valuable improvements quickly, measuring and sharing the impact and ensuring those early wins align with corporate strategy so they build towards larger strategic outcomes.”
In terms of business functions, Ball says Irish organisations are focusing on customer service, operations and support functions such as finance and HR to leverage AI agents, with US peers leveraging AI agents more aggressively across a wider range of business areas, including innovation and strategic functions. “This suggests significant opportunity for Irish business leaders to expand the use of AI agents beyond core operations and future-proof their businesses,” she notes.
But despite this gathering momentum, business transformation through AI is still at a relatively embryonic stage for many Irish organisations. PwC’s 2026 CEO survey found that fewer than one in 10 (8 per cent) of Irish chief executives reported AI application across a range of business areas – compared with 18 per cent of global companies.
The impact of this transformation is already being seen in the bottom line, and is accelerating quickly, Ball warns.
“Global CEOs whose organisations have established strong AI foundations – such as responsible AI frameworks and technology environments that enable enterprise-wide integration – are three times more likely to report meaningful financial returns,” she says.
“Meanwhile, separate PwC global analysis shows that companies applying AI widely to products, services and customer experiences achieved nearly four percentage points higher profit margins than those that did not.”
In Ireland, businesses are moving from experimentation to action, but progress varies, Ball says: PwC’s 2025 survey of AI agents revealed that over half of Irish respondents confirmed measurable productivity gains from AI agents, but only 38 per cent said that this is translating into tangible cost savings.
“Productivity gains are clear, yet cost savings, improved profitability, trust and governance remain challenging. AI success in 2026 will hinge on enterprise-wide adoption, strategy, benchmarks, workforce reimagination and responsible AI.”
According to Ball, an obvious gap in terms of confidence and competitiveness is emerging among Irish businesses. She says businesses need to focus on the basics, such as upskilling their people. They must also start using AI agents to deliver truly transformative and not just “incremental” value.
Mindset and trust are critical to this, she says. “Organisations should broaden their mindset from seeing AI as an efficiency driver to a reinvention enabler. Leadership needs to see AI as a tool of reinvention and, while not losing sight of the need to adopt in a responsible manner, needs to give their teams the permission to think big in their AI ambition.”
Trust in the technology is critical. Ball points out that just seven per cent of Irish executives in PwC Ireland’s 2025 AI agent survey expressed high trust in the technology across multiple functions. “For Irish organisations, building trust through transparency, oversight and robust governance is essential,” she says. “A continued focus on building a foundation of responsible AI practices and investing in the upskilling of their people will allow organisations to maximise their potential, afforded by agentic AI.”
Businesses must move now to ensure the right foundations are in place, Flood says. “When that happens, AI turns transformation from a one-off initiative into an ongoing habit, ensuring that products and services are delivered reliably and seamlessly every day.”
