CEOs plan to accelerate AI, transformation, cost control and dealmaking in 2026 – EY Ireland CEO Outlook

Irish CEOs are entering 2026 with urgency and focus, responding to rising cost pressures, geopolitical uncertainty, and accelerating expectations for transformation, according to the latest EY CEO Outlook, which surveyed 1,200 executives globally – including 40 leading CEOs in Ireland.

Irish companies are transforming at a fast pace, with 50% of CEOs reporting their organisations are already in significant enterprise-wide transformation programmes and a further 50% planning to initiate one in the year ahead. These programmes are increasingly focused on reshaping the core of the business.

In Ireland, 50% of CEOs cite cost reduction as a key priority; 46% are prioritising improvements in customer engagement; 44% are working to accelerate progress on sustainability; and 20% are driving operational optimisation and productivity, including digitisation, as a top priority. The research also shows that Irish CEOs believe that transformation is no longer optional but essential, as Irish organisations seek to strengthen performance and build more resilient, future-ready business models.

CEOs are acting with urgency amid mounting pressures

Rising costs, geopolitical friction, and regulatory complexity are intensifying operating pressures for Irish businesses. 65% of CEOs expect operating costs to rise this year, reflecting ongoing wage inflation, energy volatility and increased regulatory demands. Geopolitical uncertainty is also reshaping strategic decisions: 46% have stopped or delayed an investment due to geopolitical or trade dynamics, 28% accelerated one, 5% exited a country, and 40% shifted suppliers to different markets. These shifts demonstrate how CEOs are balancing caution with decisive action as they prepare their organisations for a more unpredictable economic landscape.

Helena O’Dwyer, Partner and Head of Strategy at EY Parthenon Ireland, said:

“Irish CEOs are dealing with rising costs, geopolitical uncertainty and increasing regulatory demands, yet they are responding with real urgency. Leaders are pushing ahead with major transformation programmes, from adopting AI to strengthening cyber security and redesigning how their organisations work. Their focus is simple and practical: reduce costs, drive growth and improve productivity through smarter use of technology. It is a challenging environment, but Irish businesses are showing strong momentum, and many are already seeing the benefits.”

AI has moved from experimentation to core strategy

AI is also at the centre of Irish CEOs’ strategic agendas. 30% of leaders say their AI initiatives have delivered significantly above expectations, with another 55% reporting results somewhat above expectations. Early benefits identified are emerging across customer operations, software development, risk and compliance automation and forecasting. Looking ahead, 98% expect AI to have a transformative or significant impact on their business model within two years, with generative AI (48%) and machine learning (45%) expected to play the largest roles. Cybersecurity remains the biggest concern when prioritising AI investments, cited by 30% of Irish CEOs.

New skills are becoming essential for performance

AI and digital transformation are also reshaping workforce plans. Despite cost pressures, 60% of CEOs plan to maintain or increase hiring in 2026, particularly in roles that support AI, data, cyber and technology integration. Organisations are accelerating reskilling and redeployment to meet transformation demands. Priority skills include data and AI, cyber resilience, cloud engineering, transformation, and regulation.

Carol Murphy, Partner and Head of Markets at EY Ireland, said:

“Irish CEOs see the scale of change ahead and are acting now. Many are already deep into major transformation programmes, and almost all expect AI to reshape how their organisations work within the next two years. The focus is on practical steps, adopting the right technologies, strengthening skills and forming partnerships that help deliver real results. Ireland’s fundamentals remain strong, and CEOs are positioning their businesses to drive growth, improve efficiency and build new ways of working. The pace of change is accelerating, but Irish companies are meeting it with confidence.”

Deals are a preferred path to new capabilities

Dealmaking is also rising sharply. 98% of Irish CEOs plan to pursue at least one transaction initiative in the next 12 months, including mergers & acquisitions (50%), joint ventures or strategic alliances (68%), or divestments (15%). The top three key motivators cited by CEOs are accelerating growth, acquiring new capabilities, particularly in AI and cybersecurity, and strengthening customer reach.

Momentum is also reflected in investment intentions as Ireland continues to stand out as an investment hub. Irish CEOs rank Ireland as the top country where they plan to deploy capital over the next 12 months, ahead of the United Kingdom and the Netherlands, underscoring the country’s resilience and its continued appeal as a strategic hub for growth and innovation.

As CEOs pursue these strategies, their confidence in their own performance remains strong. Irish leaders are positive about the year ahead, with the majority (78%) expecting overall business performance to improve in 2026 compared with 2025. Confidence also extends to financial outcomes, with 61% anticipating an uplift in profitability and 48% expecting productivity to rise.

To read the full report, please visit: www.ey.com/ie/ceooutlook.