HLB Survey of Irish Business Leaders 2024

CONTENTSKEY FINDINGS

04

FOREWORD

05

RESILIENCE IN TURBULENT TIMES

06

PUTTING TECHNOLOGY TO WORK08HOW TO ASSESS AI MATURITY

13

A 10 STEP PLAN TO AI INTEGRATION18RESEARCH METHODOLOGY20

HOW HLB CAN HELP

21

3

4 HLB Survey of Irish Business Leaders 2024

KEY FINDINGSBUSINESS SENTIMENT

92% 84% 73% 63%
are confident intheir own ability
to grow revenue
in 2024

rank inflation asa top risk

expect global
economic growth
to be maintained
or to increase thisyear

rank economic
uncertainty as a
top risk

TECHNOLOGY

74% 65% 60% 52%
rank cybersecurity as a
top risk

rank AI as themost important
technology for
their businessplan to adopt
new technology
in 2024

say emerging
technologies are
key to driving
innovation,
creativity andproductivity

BUSINESS LEADERS EMBRACING AI TECHNOLOGY ARE MORE CONFIDENT IN
THEIR ABILITY TO GROW REVENUE

8%
Not confident

49%
Somewhat confident

Very confident

43%

HLB Survey of Irish Business Leaders 2024

FOREWORD
WelcomeI am pleased to introduce the findings ofresearch conducted by HLB Ireland among
Irish business leaders late last year. The
purpose of our study was to measurebusiness sentiment at a time whengeopolitical risks, cyber threats, andenvironmental challenges are escalating.
Our analysis, which forms part of thecomprehensive HLB Global Survey ofBusiness Leaders 2024, shows that
resilience and technological advancement
are front of mind for Irish business leaders.
An impressive 92% express confidence intheir growth prospects over the next 12months, significantly outpacing the global
average of 85%. The responses show aclear commitment to innovation anddigital security as leaders adopt a
proactive approach to navigating thecomplexities of the future businessenvironment.
AI stands out as the most important
emerging technology with 65% of both
Irish and global survey respondents statingthat AI will be crucial for their business inthe next five years. Successful AI
implementation will require new skillsets inthe workplace both at implementation andusage stages. This will make access totalent more important than ever.

Our report highlights different approaches
to AI, explores barriers to adoption andsets out a practical 10-step plan to help
you progress your AI journey, regardlessof where you currently stand. We hopethat you find it interesting and useful.
Almost three-quarters (74%) of our survey
respondents rank cybersecurity as their
top risk, reflecting global recognition ofdigital security challenges. Protecting
digital infrastructure is paramount.
Companies need to concentrate on thethree pillars of cyber-resilience—comprehensive monitoring, rapid response
and regular training. They must also keep
in mind that Artificial Intelligence (AI)systems will require new security
mechanisms.
My sincere thanks to everyone who gave
their time to respond to our survey.
If you would like to discuss any of thefindings or topics raised in this report,
please get in touch.

Mark Butler
Managing Partner, HLB Ireland.

5

6 HLB Survey of Irish Business Leaders 2024

RESILIENT LEADERS
ARE COMPOSEDThe overwhelming majority (92%) of Irish
business leaders surveyed express
confidence in their ability to grow revenues
this year, significantly ahead of the 85%
global average. This upbeat outlook islargely fuelled by strategic technologicaladvancements and a strong emphasis on
digital transformation.
Irish and global leaders are equally positivein their outlook on the global economy with
73% of both groups expecting growth toremain the same or improve in the next 12months[1]. Notwithstanding their optimism,
however, risks in the global businessenvironment including inflation, economic
uncertainty, and concerns aboutcybersecurity, will continue to test even themost astute operators.
While inflation is trending downwards, 84%
of Irish business leaders remain worried
about the impact of inflationary pressureson their business. The OECD expects
inflation to ease in most economies as costpressures moderate however thesepredictions do not factor in recent trade
flow disruption in the Middle East[1]. Closer
to home, the Central Bank’s Quarterly
Bulletin published in December 2023 notesthat falling energy prices have contributed
most to the drop in headline inflation todate while a more generalised reduction of
externally driven price pressures is
expected to bring headline inflation back to
2.1% in 2025.[2]Concern about cybersecurity continues togrow with fears that innovativetechnologies, including Generative AI, canfurther increase exposure to cyber risk. 74%
of Irish business leaders are ‘concerned’ or‘very concerned’ about cybersecurity. This
concern is matched by a significant majority
prioritising investments in cybersecurity
measures, aligning with global trends
towards safeguarding digital assets. A
robust cybersecurity strategy includes threecore principles: ongoing monitoring by
experts who are fully up to date with theever-changing threat landscape, rapid
response to mitigate losses, and regulartraining and awareness programmes.[2]Globally, the impact of the pandemic
remains visible across markets andsocieties, even though it’s no longer themain stressor. With ongoing supply chain
disruptions paired with geopolitical tensions
continuing to change the international
business environment, a third (33%) of Irish
business leaders plan to focus on sourcing
closer to home this year.
Overall, lrish business leaders are poised toinvest to innovate and grow and more thanhalf (53%) expect technologicaladvancement to help them overcome future
cross-border challenges.

[1] OECD. 2023. Economic outlook: A mild slowdown in 2024 and slightly improved growth in 2025.
[2] Central Bank of Ireland. Quarterly Bulletin No. 4, 2023.

HLB Survey of Irish Business Leaders 2024

LEADERS ARE FACING84%

A ‘CONVEYOR BELT’OF CRISESQ To what extent do thefollowing risks to yourbusiness concern you?

74%
INFLATION

74%
67%
CYBERSECURITY ISSUES(showing ‘concerned’ and ‘very

65%

concerned’ combined responses)

64%

Ireland

GlobalRISING INTEREST RATES

63%
52%
ACCESS TO TALENT

63%
68%
ECONOMIC UNCERTAINTY

62%
69%
GEOPOLITICAL RISK

60%
62%
RESOURCE COST

50%
52%
ENVIRONMENTAL / CLIMATE RISKS

40%
51%
REGULATORY CHANGE

35%
51%
SOCIAL INSTABILITY

24%
52%
EXCHANGE RATE VOLATILITY

7

8

HLB Survey of Irish Business Leaders 2024

PUTTING TECHNOLOGYTO WORKHLB Survey of Irish Business Leaders 2024

In common with their global peers, 60% of Irish business leaders plan to adopt newtechnologies in 2024. Second only to finding efficiencies, businesses are putting
technology to work to support innovation, creativity and productivity in their businesses.

BUSINESS LEADERS FOCUS ON FINDING EFFICIENCIESQ Which of the following actions are you planning to take in thenext 12 months, in order to grow?

71%
60%
57%
56%
50%
50%
44%
25%
21%
19%
16%
7%

9

10 HLB Survey of Irish Business Leaders 2024

AI IS NOW INDISPENSABLE FOR BUSINESSContinued investment in cloud computing provides the critical infrastructure for AI
applications.Almost two-thirds of Irish survey respondents expect AI to be the mostimportant technology for their business over the next five years and just under athird are prepared to take on more risk, given the potential benefits of AI. However
one in four agree that short-term priorities and unexpected market disruptions makeit difficult for their business to make new AI investments.

Q Which of these technologies will be the most important to yourbusiness over the next 5 years?

65%

Artificial Intelligence59%

Cloud Computing
49%

Renewable Energy
26%Internet of Things
Machine Learning

22%

Battery Storage & Electrification

21%
18%

Robotics Process Automation
New Materials

9%(Graphene, Aerogels, etc.)

Hydrogen Fuels

7%

Bitometrics

7%

Virtual Reality/Augmented Reality 7%
Blockchain

4%

Genomics

3%

Drones3%

HLB Survey of Irish Business Leaders 2024

HOW A﻿RE BUSINESSES USING AI TODAY?
Our research suggests that business leaders are embracing AI to pursue a wide rangeof potential business outcomes and improve operational efficiency. When asked where
they are using AI, sales and marketing, content generation, customer analytics andprocess automation were the top responses of Irish survey respondents. Globally, thetop applications cited were process automation (28%), document processing (27%),and customer analytics (27%). We anticipate rapid acceleration in the proliferation of
AI solutions in the second half of this decade.

Q Where has your company used AI technologies to automate orenhance operations?
Sales and Marketing

19%

Content Generation

19%

Customer Analytics

18%

Process Automation

18%

Document Processing

15%

Text / Data Mining

15%

Research and Development

7%

Risk Management

6%

Supply Chain Optimisation

4%

Recruitment and Human
Resources
Quality Control

4%

Other
None of the Above

1%
9%
35%

11

12 HLB Survey of Irish Business Leaders 2024

HLB Survey of Irish Business Leaders 2024

13

WHERE ARE BUSINESSES ON
THE AI MATURITY CURVE?
Attitudes towards AI adoption vary among
the leaders we surveyed. We identified three
distinct cohorts based on their attitudes
towards emerging technologies and progresswith AI adoption.

IRELAND

23%
CONSERVATIVES
are averse tousing AI, doubtful
about its impact
or worried thatthe potential risks
may outweigh thebenefits.

22%

INNOVATORS
are already using
AI or are eager
to integrate
it into theircurrent
operations.

ATTITUDES TO AITECHNOLOGIES55%
EXPLORERS
are willing to giveAI a try but it’s nota business priority

GLOBAL

18%
44%
38%

14 HLB Survey of Irish Business Leaders 2024AI

INNOVATORSHARNESSING AI FOR COMPETITIVE EDGE
Only 22% of Irish survey respondents already use AI or are eager to implement
it to gain a competitive edge. The main AI activities of these Innovators aretechnology assessment (19%), data cleansing and quality review (18%),
technology partnership and vendor evaluation (13%) and adoption of AI tools(11%).
In our global survey, most Innovators have already identified appropriate usercases for AI, 66% have performed technology assessments and readiness
reviews and just over half (51%) are implementing or optimising their data
cleansing and quality review processes. Our global research shows that data
security and privacy and data quality and quantity are the top two barriers to
adopting and integrating AI technologies for Innovators. Over time, we
anticipate that a combination of past and emerging solutions will help
Innovators overcome these barriers.

Q How would you evaluate your business's progress in adopting AI
technologies across the following key areas:
Tech Assessment

19%

Data Cleansing

18%
13%

Technology Partnership

11%

Adoption of AI Tools
Assessment of IP

10%

User Cases

10%
8%

Assessment of EthicalStaff Training

3%

HLB Survey of Irish Business Leaders 2024AI

EXPLORERSSEEKING A BUSINESS CASE
Most (55%) of our Irish survey respondents are Explorers. They are willing to
try AI technologies if a convincing business case can be put forward but AI is
not a priority—50% claim to be in learning mode on the AI maturity curve
while 40% admit to having not yet started their AI journey.
Globally, while Explorers cite lack of user cases and unclear ROI as the mainbarriers to AI integration, AI not only makes it possible for organisations to do
better, it also enables them to do more. Explorers need to make a ‘leap offaith’ to move from concepts to action.

Q How would you evaluate your business's progress in adopting AI
technologies across the following key areas:

74%

User Cases
41%

Adoption of AI Tools
Technology Assessment

35%

Data Cleansing

34%
32%

Staff Training
Assessment of Ethical24%

Assessment of IP

24%

Technology Partnership

13%

15

16 HLB Survey of Irish Business Leaders 2024AI

CONSERVATIVESAI NOT YET A PRIORITY
There is a substantial gap in AI maturity between Conservatives andInnovators. Most Conservatives have either not started their AI transformation
journey or sit at the learning stage, while most Innovators are either
optimising or leading in their AI strategy.
Almost a quarter (23%) of Irish survey respondents are either averse to using
AI or cautious about the risks. While this segment of our sample may be
preoccupied dealing with business disruption, inaction around AI today could
push them to market margins tomorrow.

Q How would you evaluate your business's progress in adopting AI
technologies across the following key areas:

74%

Technology Partnership

68%

Assessment of Ethical
Assessment of IP

66%

Staff Training

65%
49%

Data Cleansing
Adoption of AI Tools

47%

User Cases

46%

Technology Assessment

46%

HLB Survey of Irish Business Leaders 2024

BARRIERS TO ADOPTING AND INTEGRATING AI TECHNOLOGIES
Irish leaders perceive lack of time, lack of user cases and unclear ROI to be
the top barriers to adopting and integrating AI. They are also concerned
about data privacy and security and lack of digital transformation skills. As
already mentioned, successful AI implementation will require new skillsets inthe workplace, both at the implementation and usage stages.

Q What are the top 5 barriers to adopting and integrating AI technologies
into your business?
43%

Lack of Time
Lack of User Cases

37%

Data Security Concerns

35%

Data Quality and Quantity

32%

Lack of Digital
Transformation Skills

29%

Fear or Resistance toChange29%

Old IT Systems

25%

Business Model Obstacles

25%

Ethical and Legal Issues

22%

Executive Commitment

22%
46%

Lack of Budget

18%

17

18 HLB Survey of Irish Business Leaders 2024

We have identified 10 steps to help plan businesses progress their AI journey, regardless of where they currently
sit on the maturity curve. Exploring the following questions will help business leaders along each step.

1

2

3

4

IDENTIFYOBJECTIVES &CHALLENGESUNDERSTAND AICAPABILITIESDATACOLLECTION &MANAGEMENTEVALUATE &SELECT THE
RIGHT AISOLUTIONS

Based on avalue-based
assessment,
what areas of
the businesscould benefit
most from AI?

Have you got agrasp ondifferent types ofAI technologies
and their
potential
applications?

Is the rightinfrastructure
in place tocollect, store,
and manage
data securely
and efficiently?

Is there someone
on yourmanagement
team who has agoodunderstanding ofAI and its
benefits?

Are yoursystems able toproviderelevant andquality data for
effective AI
systems?

Can you definesome clear,measurable
objectives forwhat you wantto achieve withAI?
Have you got
business
problems which
AI could
potentially fix
for you?
If you’re aheadon the maturity
curve: Have you
reviewed theeffectiveness ofcurrent AI
implementations
to ensure theyremain focusedon optimisation,
efficiency andscaling?

Alreadyexperimenting
with AI? Have
you considered
getting an
external expert
in, to challenge
your thinking?

Have you done
a data quality
check?
Already
trialling AI
applications?
How might you
use what
you’ve learned
to upgrade
your data
infrastructure
for better
performanceand scalability?

Have you setaside time toresearch andidentify the AI
tools andsolutions whichalign with yourobjectives?
Can you use
ready-made AI
solutions or doyou need todevelop custom
AI applications
tailored to yourspecific needs?
Further along on
your AI journey?
Have youanalysed how
well existing AI
tools areperforming andwhether there
are any areas of
improvement?

5
INTEGRATION &IMPLEMENTATION

Have you got aplan forintegrating AI
into yourexisting systems
and workflows
What user cases
or small-scale
pilot projects
have youidentified to test
and refine the AI
solutions before
full-scale
implementation?
Already tryingout AI in yourbusiness? How
might you scale
up successful
pilots and whatcriteria are you
using todetermine whenpilots have beensuccessful?

HLB Survey of Irish Business Leaders 2024

6

7

8

9

COMPLIANCE& ETHICSTRAINING& CHANGE
MANAGEMENTMONITOR &EVALUATESCALE &EVOLVEHow are you
assessingwhether yourAI adoption
plans alignwith ethicalstandards andbest practices

How can you
lead with aflexible mindset
and encouragea culture ofcontinuous
adaptation of
emerging
technologies?

What
infrastructure
is in place tocollect, store,
and manage
data securely
and efficiently

How can you
encourage yourmanagement
team tocontinuously
evolve your AI
strategies?

Are your legacy
systems
providing you
with relevant
and quality
data foreffective AI
systems?

What’s in place
to ensure you
stay abreast of
the latest
developments
in AI?

Are youstaying
informed on
the relevantlaws andregulations
related to AI
and data
privacyWhat’s in place
to ensurecompliance?
Ahead of yourpeers? Perhaps
you’redeveloping
more nuanced
ethicalframeworks for
AI usage,considering
impact andfairness?

What technicaland nontechnicaltraining can
you put in place
to support yourpeople with AI
technology
adoption?
Already trained
your people? Is
there a specifictechnology
which calls formore advanced
training?

Have you done
a data quality
check?
Already using
data to drive AI
applications?
What have youlearned whichmight inform an
upgrade to
your data
infrastructure
for better
performanceand scalability?

What are you
doing to scale
your successful
pilot projects
across theorganisation?
Completedsuccessful
pilot(s)? How
are you
evolving yourstrategy
towards scaling
to maximise AI
ROI?

19

10
STRATEGICPARTNERSHIPS &COLLABORATIONSHave youidentified
business partners,
AI communities,
and academia you
might be able tocollaborate withto stay ahead of
the competition?
How might you
explore somepotential
strategic
partnerships with
AI technology
providers or
innovators?
Further along
your AI journey?
Perhaps you are
well-positioned tolead a research
consortium
focused on AI
research anddevelopment inyour particularsector?

20 HLB Survey of Irish Business Leaders 2024

RESEARCH
METHODOLOGY
Between September and November
2023, HLB collected 979 survey
responses
frombusinessleaders
across 52 countries and a broad range
of industry backgrounds. Responses
were collected via an online survey
tool or telephone interview. The
research sample was selected andcontrolled via HLB firms from their
CRM data and supplemented withexternal market responses.
This report highlights the responses of
the
Irish
businessleaders
who
participated in the HLB survey.

For deeper insights into how Irish
businesses stand on the global
stage, explore HLB Global Surveyof Business Leaders 2024.

HOW HLB CAN HELP
With technological advancements evolving at an ever-accelerating
speed, businesses are seeking to understand the competitive advantage
new digital technologies such as AI can offer them. Our findings suggest
significant differences in potential business outcomes between
businesses embracing AI technologies and those more cautious about
adoption. A structured approach is needed to effectively reduce risk andgain return on investment (ROI) from digital transformation efforts.
If you would like to explore the findings inthis report and how they inform your next
phase of transformation and growth, wewould welcome the opportunity to discussthese with you.

www.hlb.ie
info@hlb.ie(01) 291 5265

HLB Survey of Irish Business Leaders 2024