Irish businesses embrace AI to drive productivity and innovation, Deloitte finds.
A growing majority of Ireland’s leading private companies are now integrating artificial intelligence into their operations, according to new research from Deloitte in partnership with UCD Michael Smurfit Graduate Business School.
The study, which surveyed 115 indigenous firms participating in Ireland’s Best Managed Companies programme, found that 62% have adopted AI technologies, with usage highest in technology-driven sectors.
“Innovation is a key theme, and launching new products and services is the top growth strategy for the next five years. These companies are already harnessing the power of AI to enhance productivity”
Among technology, media and telecommunications (TMT) firms, AI adoption stands at 94%, underscoring the sector’s rapid digital transformation. Across the broader cohort, the most common applications of AI include employee support and internal productivity (28%), operational efficiency and automation (22%), and customer engagement through sales and marketing (15%).
Innovation priorities
Operational process improvements were identified as the top innovation priority, cited by 55% of respondents.
Rising business costs emerged as a key strategic concern, with one in three companies listing it as a top challenge. This figure rises to 41% among family-owned businesses and 51% in the consumer sector. Talent acquisition and retention also remain pressing issues, with 28% of companies naming it as the leading barrier to growth.
To address workforce challenges, companies are investing heavily in employee engagement and development. Nearly all respondents (95%) said they are prioritising improved communication between employees and management. Additionally, 78% are increasing investment in professional development, 72% are introducing wellbeing programmes, and 66% are raising staff compensation.
Geopolitical and regulatory uncertainty was cited by 25% of companies as a significant barrier to growth, with many closely monitoring policy changes and trade dynamics.
The survey also highlighted progress in gender diversity at the executive level. A total of 57% of companies reported that women make up at least 20% of their C-suite, while 16% have achieved gender parity. However, representation tends to be lower in STEM-focused sectors.
Looking ahead, companies are prioritising innovation-led growth. Developing new products and services was the most cited strategy, with 65% of respondents identifying it as central to their plans over the next five years. Mergers and acquisitions (55%), international expansion (52%), and increasing headcount (52%) were also key growth levers. Only 9% of companies said they would rely on third-party debt to fund growth.
Among TMT firms, 76% are pursuing M&A as a growth strategy, and 71% are allocating resources to international expansion. Private equity-backed companies are similarly focused on overseas growth, with 57% identifying it as a strategic priority.
“Rising costs continue to challenge businesses across the board, but Ireland’s Best Managed Companies are powering through with remarkable resilience and an unwavering commitment to excellence,” said Brian Murphy, Lead Partner for Ireland’s Best Managed Companies Awards Programme.
“Innovation is a key theme, and launching new products and services is the top growth strategy for the next five years. These companies are already harnessing the power of AI to enhance productivity. Talent acquisition and retention remain tough battles, but the Best Managed Companies are winning by putting their people first.”
The winners of this year’s Ireland’s Best Managed Companies programme will be announced on Thursday, 25 September.
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