A total of 62% of top Irish companies have adopted AI technologies to support their operations, according to new Deloitte research produced in collaboration with UCD Michael Smurfit Graduate Business School. Adoption is advancing fastest in technology-driven sectors, with 94% of technology, media and telecommunications (TMT) businesses surveyed saying that they use AI.
The finding is included in a survey of 115 indigenous, private limited businesses participating in Ireland’s Best Managed Companies programme.
The top use cases for AI include employee support and internal productivity (28%), operational efficiency and automation (22%), and sales/marketing and customer engagement (15%). Separately, operational process improvements (55%) are the leading innovation priority across companies surveyed.
One in three companies (33%) listed the cost of doing business as a top challenge and key strategic focus. This is particularly high in specific industries and sectors, with 41% of family businesses and 51% of companies in the consumer industry citing it as their foremost challenge.
Talent acquisition and retention remain high on the agenda, with 23% of companies naming it as a key challenge, and the leading barrier to growth at 28%. When asked about their talent retention strategies, 95% of companies surveyed said they were prioritising the improvement of engagement between employees and management, 78% said they were increasing investment in professional development, while 72% are introducing wellbeing programmes, and 66% are increasing staff compensation.
Geopolitical and regulatory challenges were also a significant barrier to growth and a priority area for respondents, with one in four companies (25%) closely monitoring policy changes and trading dynamics.
Among the companies in the cohort, 57% of companies report that women make up at least 20% of their C-suite, while 16% have achieved gender balance with 50% or more female representation at this level. However, these figures tend to be lower in STEM-focused sectors.
Developing new products and services emerged as the foremost growth strategy, with nearly two-thirds (65%) of companies indicating it will play a key role in their growth plans over the next five years. A total of 55% of respondents expect to grow their business through mergers and acquisitions (M&A), while international expansion and increasing headcount were each cited by 52% of companies. Only 9% of businesses said they would use third-party debt for growth.
Over three-quarters (76%) of TMT companies cite M&A as a key growth strategy, and 71% are allocating resources to international expansion to accelerate growth and capture new market opportunities. Private equity-backed businesses are also prioritising international growth, with 57% of PE-backed companies identifying overseas expansion as a strategic focus.
Brian Murphy, Lead Partner for Ireland’s Best Managed Companies Awards Programme, said:
“Rising costs continue to challenge businesses across the board, but Ireland’s Best Managed Companies are powering through with remarkable resilience, unstoppable ambition, and an unwavering commitment to excellence.
“Innovation is a key theme, and across every industry, launching new products and services is the top growth strategy for the next five years. These companies are not just talking the talk; they’re walking the walk, with 62% 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; focusing on employee engagement and investing heavily in professional development to boost overall performance.
“This survey of Ireland’s Best Managed Companies sends a clear message: we must champion our homegrown businesses, fuel their growth, and support their scaling journey to become the next wave of great Irish success stories.”
This year’s winners of the Ireland’s Best Managed Companies programme will be announced on Thursday, 25 September. For more information about the programme, visit deloitte.ie/bestmanaged.