Irish business leaders are reinventing their business models - as high levels of concern on a number of threats remain - says PwC’s 2025 Irish CEO survey
By Enda McDonagh, Managing Partner, PwC Ireland
Almost three-quarters (74%) of Irish CEOs expect Ireland’s economic growth to improve over the next 12 months, up from 50% last year. At the same time, 62% of Irish business leaders believe global economic growth will improve, up from 35% last year. An overwhelming majority (93%) are confident about their company’s revenue prospects for the year ahead, up from 86% last year. This compares to recent all-time lows in 2020 - when just 16% of Irish CEOs expected the economy to grow.
Globally, 58% of CEOs expect the global economy to improve in the year ahead, up from 38% last year; 91% of global CEOs are confident about their company’s future revenue prospects.
The survey also finds that 45% of Irish CEOs expect headcount to increase by 5% or more in the next 12 months - while down from 53% last year, this is nearly four times the proportion who expect headcount decreases (12%).
While Irish CEOs are much more optimistic about economic growth than they were a year ago, they are conscious of the risks. There are high levels of concern about a number of threats as the global landscape is shifting at an unprecedented rate: Macro-economic volatility is the top risk (93%), followed by lower availability of workers with key skills (91%). Other top risks include inflation (89%, slightly down from 95% last year), geopolitical conflict (88%), cyber threats (88%) and technology disruption (87%). 62% of Irish business leaders are concerned about social inequality, up from 47% a year ago.
This is according to PwC’s 2025 Irish CEO Survey, launched today. The research was carried out amongst 82 Irish CEOs alongside nearly 5,000 global CEOs across 109 countries. This press release deals with the Irish results of the research.
Shifts in geopolitics, emerging technologies and climate transition are reshaping markets locally and globally. Irish business leaders are investing in AI and Generative AI (GenAI), addressing the opportunities and threats posed by climate change, and reinventing their operations and business models to create value in innovative ways.
Despite operating in an uncertain environment, Irish CEOs are more optimistic than their global counterparts and than they were a year ago. This optimism is also reflected in strong revenue growth expectations for their own businesses, indicating we may expect continued capital investment.
The trends in this year’s report paint a complex picture, and in the months since the survey was conducted, we have seen further shifts in the business environment. Business leaders are navigating a landscape where optimism and caution coexist. This report offers key perspectives and insights on how businesses can re-invent how they create, deliver and capture value, along with the risks inherent in not doing so at pace.
Irish companies are reinventing their business models, but pace needs to quicken
Nearly three out of ten (29%) Irish CEOs believe that their company will not be viable beyond the next decade if it continues on its current path, up from 21% two years ago (Global 2025: 42%).
Irish CEOs, like their global counterparts, are taking action – 84% of Irish business leaders have taken at least one significant action (such as having developed innovative products/services, targeting a new customer base or implementing new pricing models) to change how their company creates, delivers and captures value in the last five years (Global: 86%). Globally, there is a clear link between the number of reinvention actions taken and higher profit margins.
However, the survey suggests that the pace of reinvention needs to quicken. A mindset shift on reinventing business models for the long-term good of the organisation is needed. For example, less than a third (32%) of Irish business leaders say that they have begun competing in at least one new sector or industry in the last five years (Global: 38%). Key new industries or sectors they are competing in include technology, business services and health services.
Dynamic resource reallocation is crucial for strategic reinvention. Yet, the survey further highlights that a significant proportion of businesses lack agility. For example, when it comes to moving resources between projects, over half (54%) of Irish CEOs told us that they had reallocated just 10% or less of financial and human resources in the last year (Global:51%); Nearly three-quarters (74%) reallocated just 20% or less (Global: 72%).
While we see Irish businesses focused on taking action to remain viable in ten years time, the pace of reinvention needs to speed up. Innovation is the lifeblood of growth. By focusing on new products and customer groups, Irish businesses can set themselves up for future success.
Surge in AI related innovation activity expected but mixed views on tangible impact to date of GenAI
The survey suggests an expected surge in AI related innovation activity but with mixed views on tangible benefits to date. There is a focus on realising operational efficiencies, rather than using AI or GenAI as a catalyst for fundamental business model transformation.
The survey reveals that we can expect largescale AI and GenAI adoption into key business areas in the next three years. On average, 89% of Irish CEOs predict that AI and GenAI will be systematically integrated into a range of key business areas in their organisation over the next three years (Global: 90%). These include: technology platforms (Ireland: 94%; Global: 93%); business processes and workflows (Ireland: 94%; Global: 93%); and new products/services development (Ireland 84%; Global: 86%).
While it is early days, there is nothing in our data to suggest a widespread reduction in employment opportunities across the economy as a result of GenAI. 87% of Irish CEOs said that they experienced an increase or no net change in headcount in the last 12 months as a result of GenAI, up from 73% last year (Global 2025: 82%; Global 2024: 71%).
On the other hand, Irish CEOs have mixed views on the tangible impact received from GenAI in the last year with global CEOs experiencing better returns. Over four out of ten (44%) reported seeing efficiency gains in their employees’ time at work over the last 12 months, down from 69% last year (Global 2025: 56%). Less than a third (31%) saw revenue increases (Global: 32%) and only 24% saw profit increases (Global: 34%).
However, optimism remains strong for the future of GenAI. Half of Irish CEOs (50%) expect GenAI will boost profitability in the next 12 months, compared to just 24% who reported achieving increased profitability in the last 12 months (Global: 49%, up from 34% over the previous 12 months ago).
In order to have safe and secure outcomes from AI, trust, governance and controls are needed. Building trust in AI is essential to unlocking its full potential. The survey highlights that trust in AI remains a hurdle for more widespread adoption. Less than three in ten (29%) Irish CEOs said they have a high degree of trust in embedding AI and GenAI technology into key processes in their company (Global: 33%). The PwC data shows that global CEOs who have embraced AI have reported notable benefits over the past year and expect even more positive outcomes in the future. Compliance with the EU AI Act and other AI-focused regulations will provide a supportive framework for safe and responsible AI use.
Businesses aiming for sustainable returns should not overlook the broader AI opportunity. By strategically incorporating AI into their businesses at scale, rather than focusing solely on GenAI, CEOs can unlock new levels of efficiency and innovation.
Climate action is a moral imperative: bottom-line benefits emerging amid regulatory complexity, but more action needed
Climate action is more than a strategic business decision; it’s a moral and social imperative essential for the longevity of our planet. As stewards of their organisations, CEOs have a responsibility to lead the charge in adopting sustainable practices. However, they must also ensure that the long-term benefits align with the company’s financial goals.
76% of Irish CEOs are concerned about climate change risks, down from 96% in 2022. As the climate transition continues to impact businesses, some pay off in investment is emerging. Nearly a third (31%) of Irish survey participants reported that climate change investments in their company resulted in increased revenues in the last five years, with just 3% saying it had reduced revenues. One in ten saw costs reduce, albeit over half (51%) said that it had increased costs (Global cost reductions: 18%; Global cost increases: 36%). Globally, climate investments are linked to higher profit margins, consistent with last year’s findings, which showed a connection between various climate actions and stronger financial performance.
The survey highlights a clear commitment to the carbon transition. 30% of Irish CEOs have accepted a lower rate of return for climate-friendly investments in the last 12 months compared to other investments (Global: 2025: 25%). Four out of ten (40%) Irish CEOs confirmed that a proportion of their personal incentive compensation is determined by sustainability metrics (Global: 56%). The data suggests that the more CEO compensation is linked to sustainability, the more revenue is likely to come from climate-friendly investments.
However, still more action is needed as 29% of Irish business leaders admitted to not having made climate-friendly investments in the last 12 months (Global: 26%). Challenges remain around initiating climate related investments: Irish CEOs that made climate-friendly investments cited regulatory complexity (75%) as the top factor inhibiting their companies’ ability to initiate those investments, higher than global counterparts (68%). Other barriers included: lower returns for climate-friendly investments (Ireland: 57%; Global: 64%), lack of finance (Ireland: 51%; Global: 54%) and lack of buy-in from the management team (Ireland:34%; Global: 45%).
We are seeing Irish organisations embrace reinvention - with significant actions to embed AI and climate actions into the DNA of their businesses. However, there is more work to do. We need a change of mindset to link these actions to innovative growth strategies and bottom-line improvements. For example, less than one in six Irish CEOs said that they planned to integrate AI/GenAI into core business strategy to a large or very large extent in the next three years. While sustainability can be a strategic advantage, more action is needed as 29% of Irish CEOs have made no climate-friendly investments in the past year.