Irish businesses still hesitant to go all in on GenAI, PwC finds

27 Jan 2025

Image: © Nigel /Stock.adobe.com

Current focus on GenAI activity continues to be on realising its efficiencies in operations rather than on revenue generation.

Nearly all (98pc) Irish businesses have started using artificial intelligence (AI), though just 6pc have deployed the technology at scale, PwC’s 2025 GenAI Business Leaders Survey found.

The survey identifies AI and GenAI trends, including its adoption, governance, risks and return on investment in businesses, and according to the report – which is in its third iteration – 67pc of Irish business leaders are partially implementing or testing the technology in their organisations, while still feeling that the safe deployment of AI is complex, and needs planning and coordination.

This is up significantly from last June, said PwC, which found that 47pc businesses in the country had begun implementing AI.

Increased experimentation and innovation with AI is enabling businesses to better understand the opportunities the technology can bring, the report said, with a steadily increasing number of respondents of the survey (86pc) believing that the overall impact of AI on the Irish economy in five years would be positive.

However, despite tech giants pumping billions into AI projects over recent years, seeing widespread success, and reports suggesting that GenAI is set to add nearly €150bn to the Irish economy in a decade’s time, 74pc of business leaders in the country are questioning whether GenAI will deliver increased revenue. Although, 71pc agreed that the technology will “significantly” change the way their organisation creates and captures value in the next three years.

More than a third (38pc) of survey respondents said they have not realised any tangible financial return from their AI and GenAI initiatives over the past 12 months, while a further 52pc reported that its impact on their business was “small”. Last year, a Basware report found that nearly half of the surveyed senior finance leaders expressed concern over further AI-related investments if the technology does not demonstrate value over the following 12 months.

The PwC report found that current focus on GenAI activity continues to be on realising its efficiencies in operations rather than on revenue generation, with just 40pc leaders reporting increased operational efficiencies from AI and GenAI activities, and just 30pc reporting increased productivity. Moreover, less than half (46pc) leaders were confident in their ability to assess return on investment from their AI initiatives.

69pc of leaders surveyed by PwC disagreed that GenAI will enhance the organisation’s ability to build trust with shareholders, with just 13pc responding that AI and GenAI enhances customer experience.

While 81pc of survey respondents agreed that GenAI will likely increase cybersecurity risk in the next 12 months – down from 91pc last year. An overwhelming majority (86pc) of business leaders welcomed the EU AI Act, recognising its ability to negate the potentially harmful impacts of AI. However, only 21pc reporting that their organisation has an AI governance structure in place.

Furthermore, 75pc of business leaders are expecting an increase or no net impact on jobs in Ireland as a result of GenAI, up from 55pc in 2024. Although, 73pc of respondents did note that GenAI will require most of their workforce to develop new skills.

Commenting on the survey, David Lee, the chief technology officer at PwC Ireland, said:  “As evidenced by the marked increase in the reported levels of AI-related innovation, the survey highlights that Irish businesses continue to be very engaged in looking to understand the opportunities presented to their business through the adoption of AI.

“[Business leaders] are learning from their innovation activity to date that the safe and successful deployment and sustained adoption of AI is a complex process that requires planning and coordination across the organisation.

“It is not a surprise that the survey highlights that the current focus of AI related innovation is on efficiency-related gains rather than more radical business model reinvention,” added Lee.

“In our experience, organisations need to build the confidence and trust in the technologies before they are willing to use them as the bedrock for more fundamental transformation.”

Last year, PwC’s survey of senior business leaders found that 86pc organisations were exploring AI, partially implementing or testing it in their businesses.

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Suhasini Srinivasaragavan is a sci-tech reporter for Silicon Republic

editorial@siliconrepublic.com