Welcome to our latest KPMG CEO Outlook. In this, the 10th edition of our research, we look at the issues impacting business leaders in both the Republic of Ireland and Northern Ireland and compare their perspectives with that of their global peers.
Our research highlights a strong level of confidence by Irish CEOs in the local and global economy and confirms significant plans to invest in AI and talent. As geopolitics impacts everything from the cost of raw materials to supply chain matters, we look at how volatility and world events are shaping board room discussions and strategy development. As we consider the business outlook at home and abroad, we hope our research will help policymakers make informed decisions about how best to support entrepreneurship, innovation and inward investment in Ireland.
CEOs in Ireland are very ambitious to take advantage of AI and related technologies, even more so than their global counterparts. The challenge of attracting the right people and capabilities to make the most of these opportunities is highlighted as a risk. Our research shows that CEOs continue to recognise that people are at the heart of enabling AI, in terms of building relevant skills, enhancing workforce capability and putting the right controls in place to ensure trust can be maintained in outcomes.
As the debate about hybrid working continues for CEOs, the sentiment shows that a growing number of leaders believe that there will be a return to pre-pandemic ways of working within the next three years.
Meanwhile as the climate crisis weighs heavily, we see continued shifts in attitudes to ESG and challenges in meeting Net Zero commitments. CEOs need continued support meeting legal and governance obligations with technology developments in this regard progressing more slowly than expected. Our research also highlights the challenge of ensuring companies will have access to the resources needed to meet new ESG reporting standards.
Finally, our thanks to all the CEOs in Ireland and around the world who shared their insights with us. Their ambition for their people and the businesses they lead continues to inspire us.
At a glance
Outlook
Irish CEO confidence in the economy similar to 2023 as inflation concerns fade and interest rates fall.
More jobs
97 percent of Irish CEOs expect to increase their headcount over the next 3 years
Continued positivity
90 percent of Irish CEOs are confident in the 3-year prospects for the economy up from 87 percent in 2023.
Company growth
Irish CEOs are positive – 97 percent expect company growth in excess of 2.5 percent in the next 3 years.
Complexity
Geopolitics and a fast changing tech environment is adding to a packed CEO agenda.
Risks
Irish CEOs cite supply chain risk as the single biggest threat to growth in 2024.
Top of mind
Embracing and embedding AI highlighted as the number one top of mind issue for Irish CEOs.
Changing approach
63 percent of CEOs have adapted their strategies due to complexity – up from 53 percent last year.
Technology
AI brings advantages. And new challenges in terms of costs and regulation for CEOs.
AI budgets
77 percent of Irish CEOs cite costs as a challenge in implementing AI strategies.
Regulatory concerns
90 percent of Irish CEOs worry about the lack of regulation as the biggest AI planning issue.
Cyber crime
Most Irish CEOs (73 percent) say they are well prepared for a cyberattack but all (100 percent) worry about cybercrime.
Talent
People remain fundamental to CEO plans - despite the impact of tech and reskilling is a big priority.
Human vs machine
70 percent of Irish CEOs say AI will create more jobs than it eliminates vs 23 percent worldwide
Skills focus
Upskilling their employees to understand and implement Gen AI is the number one operational priority for Irish CEOs in 2024.
Training deficits
Only 27 percent of CEOs believe their organisation is equipped to upskill employees to meet business objectives.
ESG
ESG is changing but remains central to CEO plans - notably as it relates to their employees.
Net zero
40 percent of Irish CEOs are not confident of meeting their Net Zero goals by 2030.
Attracting talent
47 percent of respondents see the biggest impact of ESG is in attracting talent vs only 17 percent worldwide.
In-house capability
Only 60 percent of Irish CEOs say they have the internal ability to meet ESG reporting standards.