Beyond efficiency: AI’s future as a catalyst for business model reinvention

Change is invitable but trust and skills are key says PwC report

Pro

Image: Shutterstock

In association with PwC

As the technology sector drives a new era of artificial intelligence (AI), Irish businesses are leveraging its opportunities with increasing intent. This is the key finding from PwC Ireland’s latest Generative AI (GenAI) Business Leaders Survey, which highlights a significant increase in AI-related innovation despite the persistent challenge of governance.

The survey, which was conducted in late 2024 among nearly 50 C-suite Irish business leaders, indicates that 67% of businesses are currently in the testing or partial implementation phases of AI adoption, a notable increase from 47% six months ago. However, only 6% have achieved full-scale AI integration, reflecting a cautious optimism in the country’s boardrooms.

According to Martin Duffy, head of GenAI at PwC Ireland, Irish businesses are at a pivotal juncture. “The survey results show that business leaders are approaching AI in a considered manner,” he said. “Businesses have worked hard to establish relationships of trust with their staff and customers and they want to ensure that these are sustained on their AI journey.

“They 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.”

Business leaders optimistic about AI’s economic impact

Economic optimism in the context of AI remains strong, with 86% of business leaders expressing confidence in the technology’s positive impact on Ireland’s economy over the next five years, up from 77% in mid-2024. Nevertheless, challenges such as workforce upskilling are becoming increasingly critical, with 73% of leaders identifying the need for new competencies, compared to 65% in the previous survey.

And although 71% anticipate significant changes in how value is created and captured through GenAI within three years, the current focus remains on enhancing operational efficiencies, according to Aisling Curtis, market leader for strategic alliances at PwC Ireland.

“Businesses are investing the time through pilots and innovation to understand how AI and GenAI technologies can be applied to the specifics of their businesses,” she said. “While the initial focus is on productivity improvements, the real interest lies in the potential to disrupt existing business models. AI agents will make the ability for AI systems to autonomously perform tasks a reality, delivering real competitive differentiation.”

Good governance is the key to trust in AI

Despite AI’s promise, governance remains a significant hurdle. Only 21% of organisations have established AI governance frameworks. Martin Duffy emphasised the need for swift action: “With over two-thirds of Irish business leaders not having confidence that GenAI will enhance their organisation’s ability to build trust, and only a small proportion having an AI or GenAI governance structure in place, significant focus on building trust and governance will be critical,” he said. “The EU AI Act, which came into force in Ireland in late 2024, is welcomed by the majority of respondents and provides legal certainty on promoting innovation while ensuring the use of AI is safe and secure.

To realise AI’s value responsibly and securely, Martin urges organisations to establish robust governance frameworks capable of measuring the benefits.

Cyber security concerns further complicate the landscape, with 81% of businesses recognising increased risks associated with GenAI technologies. In response, 50% of surveyed companies plan to enhance cyber security measures, up from 32% previously. The introduction of the EU AI Act is welcomed by 86% of leaders as a necessary measure against AI’s potential risks.

Balancing innovation with integrity

As Irish businesses navigate the complexities of AI adoption, they face the dual challenge of driving innovation while ensuring responsible deployment. The survey reveals that 69% of leaders remain sceptical about AI’s capacity to enhance stakeholder trust, highlighting a need for more transparent communication regarding AI initiatives and their advantages.

Moreover, AI’s potential to drive sustainability is gaining recognition, with many businesses exploring AI-driven solutions to optimise resource use and minimise environmental impact, aligning with broader corporate social responsibility objectives. This dual focus on innovation and sustainability positions Irish businesses as leaders in leveraging AI for positive societal impact.

As Ireland’s AI narrative unfolds, one clear theme emerges: innovation must be judiciously balanced with governance and trust. The survey underscores the importance of a thoughtful approach to AI adoption, ensuring that technological advancements yield meaningful benefits without compromising the integrity for which Irish businesses are renowned.

For more detailed insights, read the full PwC GenAI Business Leaders Survey report.