Irish CEOs rethink strategy as geopolitical risks and tariffs reshape global growth landscape - EY CEO Outlook survey

• 90% of Irish leaders surveyed are adjusting investment plans, amid rising geopolitical instability and escalating trade tensions
• 73% say they delayed a planned investment due to global uncertainty however nearly 4 in 10 CEOs plan to pursue M&A
• DE&I remains a priority for Irish CEOs, with 83% maintaining or increasing their commitments - bucking trends seen elsewhere

Dublin, 23 May 2025: Irish Chief Executive Officers (CEOs) are making strategic shifts in response to rising geopolitical instability and escalating trade tensions, according to the latest EY CEO Outlook Survey, which surveyed 1,200 executives globally – including 40 leading CEOs in Ireland.

The research, which was undertaken in March and April including the immediate aftermath of the introduction of global tariffs by the US administration, found that 57% of Irish business leaders now see geopolitical disruption as the number one threat to growth, compared to 42% of international CEOs who said the same. Additionally, 80% of Irish respondents expressed worries about the financial impact of tariffs, slightly below the 85% of their global counterparts.

Perhaps unsurprisingly, CEOs have been taking a cautious and pragmatic approach in response, with 90% of local leaders confirming that they have revised investment strategies, including 73% who have delayed a planned investment and 8% who have stopped a planned investment entirely. To stay competitive leaders are taking action, beginning with detailed impact assessments and scenario modelling to understand where they’re most exposed, what actions they need to take and what levers to pull.

Helena O’Dwyer, Partner and Head of Strategy at EY-Parthenon Ireland said: “The findings show just how quickly Irish businesses are adapting to a more fragmented global landscape. CEOs are not waiting around for an ideal moment or future resolution, they’re taking the initiative now with the things they can control, making smart bets, and maintaining momentum.

Many are exploring new market opportunities, redesigning pricing models, shifting sourcing to tariff-free markets, and rethinking growth strategies to navigate the fallout from protectionist policies and regulatory fragmentation. We can see that leaders are choosing action over perfection and building business models that can flex with whatever comes next.”

Strategic M&A remains active, with fewer but higher-value deals

The survey found that Irish CEOs are less inclined to pursue mergers and acquisitions (M&A) this year, with just 38% indicating plans to do so, well below the global average of 57%.

Among the Irish companies that are pursuing M&A, almost half (47%) said they are prioritising deals that bring in new technology or intellectual property, while 40% are targeting acquisitions that unlock operational synergies or to drive cost transformation, not just expansion.

The survey also found a growing appetite for lower-risk forms of growth with 65% of CEOs saying that they are exploring strategic alliances or joint ventures. More than half (54%) are seeking to combine complementary capabilities, such as manufacturing infrastructure or brand reach, while 46% are focused on sharing financial and operational risks, reflecting a pragmatic approach in capital-intensive industries or turbulent markets.

Carol Murphy, EY Ireland Partner and Head of Markets, said: “While Irish CEOs are showing more caution around M&A this year compared to their global peers, those who are pursuing deals are doing so with clear strategic intent. It’s no longer about scale for its own sake, it’s about fit, capability, and long-term value. Nearly half of CEOs pursuing deals are targeting technology or IP, especially AI solutions, that they can’t build fast enough in-house, while others are focused on unlocking synergies and driving cost transformation.”

At the same time, we’re seeing a strong pivot toward lower-risk growth strategies, with two-thirds of CEOs exploring alliances and joint ventures. These are not fallback options; they are smart plays to combine complementary strengths and share risk in a volatile environment. The most successful leaders are treating integration and execution as central to value creation, not afterthoughts. That’s the hallmark of a more disciplined, more resilient dealmaking mindset.”

Inclusion strategies firm up ahead of EU regulation

At a time when some global companies are pulling back, Irish CEOs are holding firm on diversity, equity and inclusion (DE&I). According to the research, 83% say they are maintaining or strengthening their DE&I commitments, including embedding it into leadership accountability, workforce policy and business performance – compared to 75% of their global peers.

This comes as the regulatory landscape continues to evolve, with the EU Pay Transparency Directive set to drive greater scrutiny around gender pay and workplace equity from the middle of 2026.

Helena O’Dwyer said: “What’s clear from the data is the vast majority of CEOs aren’t treating DE&I as a tick-box exercise or a reputational add-on. They see it as part of how they manage risk, meet compliance expectations and build stronger, more competitive organisations.

More broadly, Irish CEOs know that diversity of thought, background and experience can lead to increased innovation, improved decision making and ultimately drive better business outcomes. In a multigenerational, multi-cultural and mobile workforce, this is more important than ever and businesses that lead with values and purpose gain a competitive edge in terms of attracting and retaining talent.”

AI investment builds in-house strength amid risk concerns

While geopolitical pressures dominate the agenda, Irish CEOs are also taking calculated steps to futureproof their businesses through technology. Some 40% of survey respondents said that they are now prioritising developing in-house AI expertise and governance, betting on the transformative technology to create long-term value.

A further 40% said they have increased AI spending, focusing on tools that enhance customer experience, detect fraud more effectively and streamline supply chains. Notably, 36% said they are scaling up after early pilots delivered tangible results, suggesting that AI is moving from experimentation to execution.

Helena O’Dwyer said: “What stands out in the data is the level of intentionality. The fact that 40% are prioritising developing in-house AI expertise tells us they want AI that integrates into the core of their operations and business model, rather than something bolted on from the outside. With another 40% increasing spend because they’re seeing real gains and around a third scaling up after successful pilots, it’s clear that AI is moving from hype to impact.”

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

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About the CEO Survey

On behalf of the global EY organization, in March and April 2025, FT Longitude, the specialist research and content marketing division of the Financial Times Group, conducted a survey of 1,200 CEOs from large companies around the world that aims to provide valuable insights on the main trends and developments impacting the world’s leading companies as well as business leaders’ expectations for future growth and long-term value creation. Respondents represented 21 countries – including Ireland - and five industries (consumer and health; financial services; industrials and energy; infrastructure; technology, media and telecoms). Surveyed companies’ annual global revenues were as follows: less than US$500m (20%), US$500m–US$999.9m (20%), US$1b–US$4.9b (30%) and greater than US$5b (30%).