CEO confidence in keeping pace with
Defining relevance
Innovation starts with clarity: being honest about what business an organisation is really in, and whether it is still meeting and anticipating customer needs. Technology may accelerate change, but the deeper challenge is defining relevance — what buyers or clients value today and what they will expect tomorrow.
Innovation, then, is not just about new products or systems. It is about creating a culture where people are encouraged to question assumptions, listen closely to a fast-evolving market, and connect insights across the organisation. Leaders who anchor innovation in clarity and purpose give their people the confidence to adapt, and the business the capacity to grow.
AI: The strategic priority
Our research shows that AI is still leading the agenda, both as a disruptor and an enabler across operational and strategic decision making. AI is not just a technology investment; it’s a strategic imperative. Confidence in AI’s potential to disrupt and enhance business models is matched only by a resolve to ensure its ethical and effective adoption.
In the Republic, 63 percent of CEOs agree that AI is a top investment priority for their organisation despite ongoing economic uncertainty, compared to 80 percent in Northern Ireland. In the coming year, 43 percent of leaders in ROI and 32 percent in NI expect to spend between 10 percent and 20 percent of their budget on AI.
Globally, 71 percent of CEOs now see AI as a top investment priority (up from just 52 percent in 2024), and 69 percent plan to allocate 10–20 percent of their budgets on AI in the next 12 months. A significant majority (67 percent) expect to see returns on this investment within 1–3 years, a sharp acceleration compared to 3–5 years in 2024.
AI is our top investment priority
For Owen Lewis, Head of AI and Velocity, KPMG in Ireland, this commitment demonstrates not only a belief in AI's transformative power but also a recognition of the urgency to act: “AI is quickly shifting from potential to priority. As organisations allocate greater portions of their budgets, they are moving beyond theoretical discussions and pilot projects, embedding solutions into core business operations. This shift is reshaping traditional workflows, streamlining processes, and unlocking new avenues for growth and innovation.”
Yet, the path forward is not without its challenges. With increased adoption comes the responsibility to manage risks, address ethical concerns, and ensure workforce readiness. Businesses are prioritising upskilling initiatives, fostering a culture of continuous learning, and establishing robust governance frameworks to support responsible AI deployment.
Globally, CEOs echo these concerns: 59 percent cite ethical challenges, 52 percent data readiness, and 50 percent lack of regulation as the biggest hurdles to implementing AI responsibly. Still, 76 percent believe their organisations are ready for safe integration of AI with robust governance.
Colm O’Neill, Head of Consulting and Global Head of Power and Utilities, KPMG in Ireland underscores the imperative for organisations to adapt thoughtfully: “Ultimately, organisations that embrace this momentum, balancing ambition with diligence, will be best positioned to harness AI’s full potential and secure a competitive advantage.”
AI adoption is also raising questions of pace and control. The risk of “pilot purgatory” remains — where organisations spread resources thinly across too many proofs of concept without ever scaling them. Global evidence shows that the most successful CEOs are those who set a clear enterprise-wide mandate, tie AI directly to customer outcomes, and align incentives across the C-suite.
Boards are beginning to ask tougher questions: How is AI linked to revenue growth? What governance model ensures ethical use? How are risks in data privacy, bias, and cyber exposure being managed?
Navigating the future of talent
As we move through an era shaped by continued technological advancements, workforce planning has become a top priority for CEOs. Our research reveals that 94 percent of leaders in ROI, and 86 percent in NI expect their teams to grow over the next three years. While this optimistic outlook is good news, what are the specific challenges organisations face in navigating this growth?
As AI tools become embedded in all areas of life and work, there is a growing concern about the levels of increasing reliance on AI-driven automation. This is reflected in our research as 34 percent of respondents in ROI and a striking 49 percent in NI pointed out that this over-dependence on the technology, at the expense of upskilling employees, is having the largest impact on their company. Yet, while organisations embrace AI and workforce transformation, there is a risk that rapid technological change could outpace employees’ ability to adapt, exacerbating skills shortages and potentially leading to greater inequality if not carefully managed.
For Conor McCarthy, Head of People and Change at KPMG in Ireland, our CEO Outlook data reinforces the need for organisations to step up and take action. According to McCarthy: “It’s about putting together flexible plans that can handle whatever technology might throw at us, but also making sure people get the training and support they need to adapt and grow.”
McCarthy says it is crucial to build an intentional and sustainable strategy that includes upskilling, overhauling, and augmenting roles: “We need to focus on how and where the technology can best be applied, not to replace workers, but to empower them to be more productive on high-value tasks.”
Global data highlights the same challenge. Three-quarters (70 percent) of CEOs worldwide agree that competition for AI talent could constrain their future prosperity, and 77 percent say workforce readiness and upskilling will have a major impact on their business in the next three years. 61 percent are already actively hiring new AI and tech talent, and 71 percent are focusing on retraining high-potential employees. At the same time, 63 percent are concerned about AI’s impact on company culture.
The cultural side of innovation is often underestimated. Hybrid work, generational expectations, and rapid skill turnover are reshaping the psychological contract between employers and employees. However, if innovation is framed purely in terms of technology, organisations risk alienating employees. But if it is linked to empowerment, sustainability, and professional growth, innovation can become a cultural magnet for talent.
Workforce changes
By 2035, it is estimated that over 80 percent of the global workforce in advanced economies will be comprised by younger generations. This shift is already well underway and is influencing recruitment, retention, and overall workplace culture. Across the entire island over half of respondents, (54 percent in ROI and 51 percent in NI), report that these changes are having an impact on their organisations. Specifically, almost a third of respondents in ROI (31 percent) and NI (23 percent) cite the combination of retiring employees and a shortage of skilled workers as the labour market factor having the greatest effect on their organisation.
This demographic shift magnifies the challenge of sustaining innovation. CEOs must balance the exit of experienced employees — many holding critical institutional knowledge — with the arrival of younger employees who bring digital fluency but require cultural integration. Upskilling is no longer just about training but a permanent feature of strategy. Some CEOs are experimenting with continuous learning models: rotational assignments, AI-enabled training platforms, and career pathways that blend technical and soft skills.
The future of work
We asked respondents how they envision the working environment in three years’ time for corporate employees whose roles were traditionally based in-office. 31 percent of CEOs worldwide foresaw their teams fully in office compared with 34 percent in ROI and 23 percent in NI. Our CEO research shows that leaders are navigating this shifting dynamic and adapting to the workforce’s desire for ongoing flexibility.
Leaders thriving in this environment will continue to prioritise people within their growth strategies and remain attuned to the changing expectations of current and potential talent. A hybrid work approach offers significant benefits by combining the strengths of both in-person and remote work, which can lead to increased job satisfaction and productivity for employees.
Organisations are addressing the realities of today’s workforce. As leaders experiment with workspace design, flexible schedules, and new technologies, they are creating environments where employees can thrive, whether onsite, remote, or somewhere in between. This adaptability helps businesses attract and retain top talent, foster innovation, and remain competitive in a landscape that is constantly changing.
The global experience reinforces this point. CEOs in many regions now treat workplace flexibility as a lever of competitiveness rather than an HR issue. Hybrid work is being linked to diversity outcomes, regional labour market access, and even real estate strategies.
Innovation ecosystems and collaboration
Another factor shaping innovation is the ecosystem in which firms operate. CEOs recognise they cannot innovate alone: collaboration with universities, start-ups, and supply chain partners accelerates the diffusion of ideas and technology. In ROI and NI, proximity to research universities and a strong multinational base provide unique opportunities in both jurisdictions to blend local entrepreneurship with global best practice.
Globally, we also see CEOs fostering open innovation ecosystems — co-investing in research, sharing data under secure frameworks, and piloting new technologies in partnership with customers.
Actions to consider
Ireland’s CEOs are ready.
Are you?
Chat with our leadership team about how the trends uncovered in CEO Outlook 2025 apply to your business and sector - connect with us to turn insight into action.
