The survey, which gathered the views of 1,200 chief executives worldwide, including 40 CEOs in Ireland, found that 92% of Irish business leaders are confident about revenue growth over the next 12 months.

The same proportion also expressed confidence in the competitiveness of their organizations, outperforming their global peers, where 86% expect revenue growth, and 80% are confident in their competitive position.

Despite this optimism, geopolitical instability has emerged as the dominant concern for Irish executives.

Seven in 10 Irish CEOs ranked geopolitical tension, instability and conflict among their top two business risks, significantly higher than the global average of 56%.

Other key concerns included macroeconomic volatility (42%), trade and supply chain disruption (22%) and talent shortages (16%).

The survey also highlights a shift in how Irish companies are approaching artificial intelligence, with investment increasingly focused on delivering measurable business outcomes rather than experimentation.

More than four in five (84%) Irish CEOs said they have increased investment in AI compared with last year, slightly ahead of the global average of 80%.

Almost six in 10 (58%) reported that AI is already having a measurable impact on core business operations.

Irish organisations are also placing greater emphasis on accountability, with 68% of CEOs using standard performance metrics to assess AI projects.

Read more

However, businesses continue to face challenges in implementing AI at scale.

More than a third (38%) of Irish CEOs identified cultural resistance to change as the biggest barrier to realizing value from AI, compared with just 16% globally.

In addition, 42% said AI regulation remains fragmented or is still evolving, while 26% pointed to growing compliance complexity.

Looking ahead, 60% of Irish CEOs expect widespread AI-driven reskilling and upskilling of existing employees to be one of the biggest workforce changes over the next three years. Just 10% believe AI will reduce hiring across certain roles.

Helena O'Dwyer, Partner and Head of Strategy at EY-Parthenon Ireland, said Irish businesses have developed resilience in the face of repeated global shocks but warned that geopolitical developments are now directly influencing business strategy.

"Irish CEOs are navigating a complex, unpredictable and rapidly evolving landscape," she said.

"The confidence in their own growth prospects is real, and there is a track record over the past decade of successfully navigating global uncertainty with confidence.

"Even still, the pace and scale of the geopolitical upheaval is extraordinary, and geopolitical risk is no longer a background concern; it is a day-to-day operating reality, shaping decisions on costs, supply chains, capital and growth."

Read more

O'Dwyer added that the challenges are particularly acute for mid-sized businesses, many of which lack the resources to respond as quickly as larger organizations.

"They may lack the scale of management capacity to find the time to actively manage these issues, or struggle with the level of working capital or technology to be able to address issues or take advantage of opportunities," she said.

Carol Murphy, Partner and Head of Markets at EY Ireland, said AI investment has reached a new phase as companies seek tangible returns.

"CEOs increasingly are not asking whether to invest in AI, they're asking what it's delivering and what comes next," she said.

"We're seeing companies move beyond pilots and build AI into core operations, but that shift also brings a workforce challenge.

“Many organizations know they need to reskill and redesign roles to make the most of AI, but progress isn't always straightforward."

* This article was originally published on BusinessPlus.ie.