PwC survey warns that slow progress could hinder competitiveness and growth.
Irish businesses are accelerating their use of cloud technology, but few have reached full-scale adoption, a gap that could limit their ability to implement artificial intelligence effectively, according to PwC’s latest Cloud Business Survey.
The report, based on responses from 1,400 business and technology leaders across 26 EMEA territories, found that while 85% of Irish organisations use cloud in many parts of their operations, only 13% have fully scaled it across the enterprise. This compares with 25% across EMEA.
“Our clients are experimenting with AI agents to fine-tune operations, redesign workflows and personalise customer experiences”
“AI needs the cloud to make it work effectively,” said David Lee, chief technology officer at PwC Ireland.
“Agentic AI is no longer theoretical – it’s being embedded into cloud platforms that power national digital economies. Progress depends on full-scale cloud adoption, overcoming integration complexity and regulatory uncertainty.”
AI is bursting through the clouds
The survey highlights that 88% of Irish organisations are refining their cloud strategies in response to geopolitical tensions and regulatory change.
Compliance and security remain top priorities, with 75% of respondents implementing cloud-based measures to meet regulatory requirements and 69% strengthening cybersecurity protocols.
Cost savings dominate investment objectives, cited by 53% of Irish respondents, followed by enabling AI implementation and improving cyber resilience. Yet barriers persist: 72% flagged data privacy and security concerns, while 50% pointed to regulatory constraints.
Agentic AI – systems capable of autonomous decision-making – is emerging as a critical differentiator. 84% of Irish organisations consider these capabilities essential when selecting cloud providers, but only 22% are scaling agentic AI across their operations.
Just 9% have broadly implemented cloud-based AI and machine learning tools, compared with 31% across EMEA.
Despite these gaps, commitment to investment is clear. More than half of Irish respondents plan to prioritise cloud spending on AI and machine learning over the next year.
“Our clients are experimenting with AI agents to fine-tune operations, redesign workflows and personalise customer experiences,” Lee said. “Organisations that align AI adoption with robust cloud strategies and governance frameworks will be best positioned for growth.”
Cost control is another pressing issue. While 88% of Irish firms expect to increase cloud investment, uptake of Financial Operations (FinOps) practices remains low. Only 19% have broadly adopted FinOps to optimise costs and governance, compared with 43% across EMEA.
“The cloud was built for change,” said Marc Hanlon, director of Cloud Transformation Services at PwC Ireland.
“As AI and multi-cloud strategies expand, embedding advanced FinOps becomes essential for sustaining financial control and driving business growth. The next phase of cloud will be defined not by migration, but by mastery – where technology, finance and governance converge.”
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