Yet, despite this enthusiasm, only 6% have fully integrated AI into their operations. This contrast, highlighted in PwC’s latest GenAI Business Leaders Survey, warrants a closer look at business leaders’ cautious approach to AI innovation and implementation.
David Lee, Chief Technology Officer at PwC Ireland, believes that such caution is understandable. “Irish businesses are deeply engaged in understanding AI’s potential. However, they are proceeding thoughtfully, ensuring that trust with staff and customers is preserved as they navigate this new terrain.”
The survey, which was conducted in late 2024 among nearly 50 C-suite Irish business leaders, highlights a prevalent focus on efficiency rather than transformative business model reinvention. “Businesses are prioritising efficiency gains,” Lee notes. “Before leveraging AI for radical transformation, organisations need to build confidence and trust in these technologies.”
Enthusiasm for AI’s economic impact is robust, with 86% of Irish business leaders optimistic about AI’s positive influence on the economy over the next five years. This figure has risen steadily from 74% in November 2023. Furthermore, 55% foresee significant or transformative impacts on their businesses due to GenAI.
However, the transition from potential to tangible benefits remains a challenge. While 71% of leaders expect GenAI to alter how their organisations create and deliver value, only 40% have realised increased operational efficiencies and 30% report heightened productivity. This underscores the nascent nature of many AI initiatives.
“While initial efforts focus on productivity, the true interest lies in AI’s potential to disrupt existing business models,” adds Lee. “AI systems’ ability to autonomously perform tasks — through AI agents, for example — promises real competitive differentiation, and we will see more of that in the years ahead.”
Organisations need to build confidence and trust in these technologies
Despite the promising outlook, articulating AI’s return on investment poses a significant hurdle. Less than half of business leaders express confidence in evaluating AI initiatives’ returns, with 38% reporting no tangible financial gains over the past year.
The survey also sheds light on the evolving governance landscape. While confidence in GenAI processes and controls has improved, with 56% of leaders affirming safe outcomes, significant gaps remain. Only 21% report having a governance structure for AI, although this is an improvement from 7% in June 2024. “Good governance ensures that businesses can innovate safely, focusing on AI adoption without undue risk exposure,” says Lee.
The EU AI Act, enacted in late 2024, is welcomed by 86% of business leaders as a crucial measure to mitigate AI’s potential negative impacts. This regulatory framework is driving a significant increase in compliance activities, with 67% of businesses planning regulatory alignment efforts over the next year.
Cybersecurity concerns also loom large, with 81% of respondents acknowledging increased cyber risks from GenAI. In response, 50% are ramping up efforts to safeguard AI systems against threats.
As Irish businesses navigate this evolving AI landscape, the emphasis on trust, governance and strategic alignment remains paramount. “Building robust governance frameworks is essential,” Lee concludes. “The EU AI Act provides a legal foundation, but organisations must establish internal structures to responsibly harness AI’s transformative potential.”
For more detailed insights, read the full PwC GenAI Business Leaders Survey report: http://www.pwc.ie/genaisurvey