Irish firms face greater regulatory complexity than their global counterparts, PwC survey finds.
Regulatory complexity is making effective compliance significantly more challenging for Irish companies compared to their global counterparts, according to PwC’s 2025 Global and Irish Compliance Survey released today.
The study, which surveyed 1,802 executives across 63 territories including 32 respondents in Ireland, reveals that Irish businesses are falling behind in adopting artificial intelligence (AI) for compliance activities while struggling with an increasingly complex regulatory landscape.
“Those who successfully reimagine their compliance functions as strategic assets will gain a competitive edge in an increasingly complex business environment”
An overwhelming 97% of Irish respondents believe their organisation’s compliance requirements have become more complex in the last three years, higher than the global average of 85%. Regulatory complexity was cited as the main challenge to effective compliance by 78% of Irish companies, compared to just 47% globally.
“In the current economic environment of disruption and uncertainty, having a best in class compliance function that ensures the business adheres with all applicable regulations, preventing financial loss and guarding the firm’s reputation, is more important than ever,” said Julie Kennedy, Risk and Regulation Partner at PwC Ireland.
The complexity is having significant business impacts, with nearly three-quarters (73%) of Irish respondents reporting that increasing compliance requirements are stunting growth-related areas such as profitability, market expansion, and new product launches.
Technology adoption gap
While digital transformation is a key strategic initiative requiring compliance involvement in the next three years (Ireland: 72%; Global: 71%), the survey reveals a concerning technology gap. On average, just 12% of Irish respondents are either piloting or already using AI across compliance activities, less than half the global rate of 29%.
Despite this lag, 59% of Irish respondents believe AI will have a net positive impact on compliance, though global counterparts expect greater benefits (71%). Data complexity (63%) and lack of technology tools (50%) were identified as key barriers to leveraging data for compliance activities.
The investment outlook compounds this gap, with only 23% of Irish companies planning increased technology investment for compliance, compared to 34% globally. The main factors driving compliance investment decisions were regulatory changes (Ireland: 63%; Global: 42%) and enhancing compliance effectiveness (Ireland: 47%; Global: 30%).
Compliance priorities
Irish businesses show different compliance priorities than their global counterparts. Anti-Bribery/Anti-Corruption, Anti-Money Laundering, and other fraud risks top the list for 44% of Irish respondents, far ahead of the global figure of 25%. Consumer protection is prioritized by 41% of Irish companies versus just 9% globally, likely reflecting Ireland’s revised Consumer Protection Code.
Meanwhile, global companies place higher emphasis on cybersecurity (37% globally vs. 31% in Ireland) and data privacy (34% globally vs. 19% in Ireland).
Culture of compliance
Irish companies place significantly higher value on certain elements of compliance culture, particularly senior management sponsorship (78% in Ireland vs. 55% globally) and accountability frameworks (50% vs. 29%). Specialist knowledge is considered critical by 81% of Irish respondents, compared to 53% globally.
Despite current challenges, Irish companies appear determined to catch up, with 47% aiming to become clear leaders in compliance capabilities within three years, compared to 38% globally. Currently, only 9% of Irish firms consider themselves as leading in this area.
“As regulatory pressures intensify and technology reshapes compliance, Irish businesses must act decisively to close the gap with global leaders,” Kennedy warned. “By embracing cutting-edge technology, nurturing diverse talent and adopting a strategic mindset, firms can transform compliance from a cost centre into a value driver.”
Kennedy concluded: “Those who successfully reimagine their compliance functions as strategic assets will gain a competitive edge in an increasingly complex business environment. For Irish companies, swift action is crucial to avoid falling behind in the global compliance race.”
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