Shifting Gears: How Irish CEOs are Reimagining Growth Strategy Amid Global Volatility

For 57% of Irish CEOs, geopolitical disruption is now the single greatest risk to growth. That makes it not just a consideration for strategy, but a front-and-centre driver of transformation. From rising protectionism to redefining alliances and regulatory divergence, the global trade environment has become more unstable—and the impact of inaction more severe.

Many Irish companies had already begun adjusting for geopolitical headwinds, but recent waves of tariffs have accelerated the pace of change. 90% of CEOs have now revised their investment strategies to consider and manage political and trade risk. Among them, 73% have paused or restructured planned initiatives, while 40% have gone a step further, relocating parts of their operations to more stable or strategically aligned regions.

As a result of geopolitics and trade policy developments, have you made any alternations to your strategic investment plans?

To stay competitive, leaders are taking bold action, starting with detailed impact assessments and scenario modelling to understand where they’re most exposed and what levers to pull. Many are reshaping supply chains to minimise cross-border exposure, moving sourcing to untariffed or lower-tariffed regions, redesigning products to exclude, minimise or substitute costly materials, and identifying internal efficiencies to offset rising costs. While some are adjusting pricing, they’re doing so with surgical precision—mindful of the delicate balance between protecting margins and maintaining customer value in an inflation-sensitive market.

What should Irish businesses do next?

• Map geopolitical exposure across trade, tariffs, supply chains, product inputs, and customer segments to identify high-risk areas.
• Localise sourcing and production where possible to reduce vulnerability to geopolitical shocks.
• Redesign products with flexible materials and suppliers to avoid tariff-heavy inputs.
• Run trade scenario planning to test pricing, margin, and supply chain resilience under multiple disruption models.
• Use trade friction as a design challenge—not just a risk—to build a more agile, regionally responsive business model i.e. identify new markets to diversify your risk.

Despite persistent macroeconomic headwinds, Irish CEOs are staying active in capital markets—but they are rethinking their motivations. This year, 38% of CEOs plan to pursue M&A, yet what they’re after isn’t scale for its own sake. Nearly half—47%—are targeting deals that bring in new technology or intellectual property. Another 40% are pursuing acquisitions that unlock operational synergies or drive cost transformation, not just expansion.

EY Competitive Edge data shows a clear shift in dealmaking behaviour: while the total number of deals in the Republic of Ireland dropped by approximately 16% between January and April 2025 (from 384 to 323), the value of disclosed deals jumped by 42%, from $17 billion to $24.1 billion. That divergence tells a story of sharper focus and strategic selectivity—fewer transactions, but bigger, bolder bets.

What should Irish businesses do next?

• Pursue acquisitions with strategic clarity. Focus on assets that deliver real advantage—whether that’s AI capabilities, proprietary tech, or operational levers that accelerate transformation.
• Use AI to sharpen valuation and diligence. Apply AI tools to stress-test assumptions, forecast integration outcomes, and surface hidden risks before the deal is signed.
• Make integration a value driver, not an afterthought. Prioritise cultural, operational, and digital compatibility from day one—smart acquirers treat integration as the deal’s defining moment.
• Use alliances as a smarter path to scale. In capital-intensive sectors, joint ventures and partnerships can de-risk growth. Align on governance, incentives, and shared KPIs from the outset.
• Stay disciplined under pressure. With asset valuations fluctuating, combine human judgement with AI-driven modelling to separate bold bets from overvalued traps.

What should Irish businesses do next?

• Treat DE&I as a business performance lever. Move beyond compliance by embedding inclusion into strategic goals and linking it directly to innovation, resilience, and bottom-line impact.
• Position DE&I as a talent differentiator. In a multigenerational, mobile workforce, inclusive cultures are a key factor in attracting and retaining top talent. Businesses that lead with values and purpose gain a competitive edge.
• Link inclusion to leadership and accountability. Establish measurable DE&I KPIs at the executive and board levels and treat progress as a business-critical priority.
• Future-proof employment practices. Stay ahead of evolving EU directives by auditing pay equity, transparency, and inclusive hiring practices. Proactive action builds trust and reduces risk.

What should Irish businesses do next?

• Start with a clear target. Identify the business problems that matter most—AI is only powerful when it’s pointed at the right use cases, whether that’s improving fraud detection, boosting productivity, or personalising customer service.
• Invest in your foundation. Build the data, talent, and governance structures that turn AI from a one-off experiment into a lasting competitive edge. That includes responsible AI frameworks, secure data practices, and upskilling your teams.
• Test, learn, and scale. Start small, measure impact, then double down on what works. Use quick wins to unlock momentum—and reinvest in what delivers long-term value.
• Own your capability. Develop in-house skills and systems so AI becomes part of how your business runs—not just something you bolt on.
• Lead with responsibility. The best strategies put people at the centre. Understand how AI will affect and enable your workforce and make sure your approach is ethical, transparent, and future-fit.

In this climate, playing it safe is the biggest risk. Irish CEOs need to make bold, calculated moves that reshape the fundamentals, not just respond to the noise.

• Hardwire geopolitical agility. Build supply chains and sourcing strategies that flex with volatility, not against it.
• Scale AI with intent. Treat AI not as a project but as a core business capability, governed, resourced, and embedded into how value is delivered.
• Deal with discipline. Pursue M&A with laser focus, only where it delivers a strategic edge, operational lift, or transformation payoff.
• Turn inclusion into infrastructure. Don’t bolt DE&I onto culture. Build it into leadership, metrics, and everyday decisions.
• Build a culture of adaptability. Empower agile teams, decentralise decision-making, and position scenario modelling as a core strategic habit.
• Now is the moment to move decisively. Leaders who back their judgment, align their teams, and bet on smart resilience will not just survive. They will set the pace.

Conclusion

This year’s CEO Outlook reveals a decisive mindset shift. Irish CEOs are not waiting for stability. They are engineering momentum.

They are making fast, smart calls, whether that means redrawing supply chains, locking in next-generation AI, or rewriting growth playbooks through sharper M&A. They are holding firm on values without standing still. And they are building businesses that can bend without breaking, designed to thrive in the grey areas, not just the green lights.

That is the new definition of leadership. Confident. Focused. Relentlessly forward.

Summary

The 2025 EY CEO Outlook reveals Irish CEOs embracing agility and resilience. With 90% revising strategies, they prioritise strategic partnerships and proactive risk management, transforming their organisations to navigate geopolitical disruptions and exemplifying decisive leadership.