New IoD Ireland research reveals directors and business leaders views on competitiveness and confidence. This new research addresses drivers and obstacles to business growth, as well as new findings on AI, Cyber Security and DE&I.
53% of business leaders in Ireland expect their organisations to see improved financial performance in the second half of the year, according to a new survey by Institute of Directors (IoD) Ireland. However, 43% of respondents are feeling pessimistic about the overall prospects of the Irish economy.
Business Risks
When asked about the most significant risks facing Irish businesses this year, the top three identified were:
- 51% economic and fiscal pressures
- 42% international trade tensions and increase of tariffs
- 28% geopolitical risks to supply chain
In particular, when respondents were asked about the potential impact of the proposed US tariff rates on EU goods and services, 43% said they expect a negative effect on their organisation’s competitiveness and business development while 32% stated it was too soon to tell.
Among the specific risks posed by these tariffs, 54% believed companies will reduce discretionary spending and investment while 48% expect consumers to delay spending decisions.
Furthermore, the survey also revealed that 52% of respondents believe ongoing regulatory requirements are impeding their business operations.
Speaking ahead of his address today at an IoD event being held at the InterContinental Hotel, Dublin, Commissioner for Democracy, Justice, the Rule of Law and Consumer Protection Michael McGrath said:
“The European Commission recognises the complex environment in which businesses currently operate. The new EU Competitiveness Compass is our roadmap to revitalise Europe’s dynamism and boost our economic growth. The European Commission is dedicated to supporting business leaders in closing the innovation gap, decarbonising our economy and reducing dependencies to strengthen and diversify supply chains.''
Commissioner McGrath added:
''The new competitive research by the Institute of Directors is crucial to identifying areas of risk and concern. At the same time, there are drivers of growth, including the digital transformation, and the European Commission will continue to support IoD members, Irish businesses, and businesses across the EU in this endeavour.”
Drivers for Growth
Further insights from the IoD survey found that the top drivers for growth identified by Irish business leaders include enhancement of products and services (42%); improved customer/client experience and engagement (38%) and digital transformation and innovation (33%). By contrast, becoming a sustainable business (10%) and investing in new talent and skills (executive, 16%) and board (8%) were ranked as lower priorities.
When asked about how important AI is for future business competitiveness, 40% of respondents said that is important for improving operational efficiency, while 25% believed that it is critical for staying ahead of competitors. The main reasons cited for utilising AI are:
- automating routine and time-consuming tasks (45%)
- gaining a competitive edge through innovation (22%)
The new survey also asked members around the impact of DE&I policies and whether these had positive impact to their organisation. The findings revealed:
- 85% believed it had a positive impact on company-wide culture
- 81% believed it had a positive impact on attraction and retention of talent
- 72% believe it had a positive impact on external reputation
IoD Ireland CEO Caroline Spillane CDir. said:
“We are delighted to welcome Commissioner McGrath and his team. We look forward to hearing his insights on competitiveness, consumer protection, and Ireland’s evolving role within the European Union—particularly in light of our upcoming Presidency of the Council of the European Union in 2026. His broader reflections, including on the shifting geopolitical landscape and its implications for Ireland’s business community, will undoubtedly provide our members with valuable perspectives to consider.”
Spillane added:
“We have also published the findings of our mid-year survey, which reveal a sense of cautious optimism among business leaders regarding the near-term outlook. However, there are significant concerns about the impact of global trade tensions and increasing regulatory pressures. Our members identified the top drivers of growth as product and service enhancement, improved customer and client engagement, and digital transformation and innovation. We will continue to engage with Government Ministers and stakeholders with this key insight to help support the needs and pressure points of our members.”
The new research also revealed in relation to the NIS2 Directive, 50% reported being “somewhat prepared,” while 74% were aware of the personal liability for directors in cases of severe non-compliance. This compares to 32.38% and 58.73% respectively, from last year’s IoD Tech Governance survey.
The Institute of Directors (IoD) Ireland mid-year survey 2025, highlighting the perspectives of 322 business leaders on key issues including regulation, competitiveness, and economic outlook was conducted from 27th May - 23rd June. The directors surveyed are all IoD Ireland members and represent a wide range of businesses as well as State or semi-State bodies, not-for-profit organisations, SMEs, and plc/multinationals.
IoD Ireland is dedicated to developing and improving the effectiveness and performance of directors and boards throughout Ireland. IoD Ireland’s CPD framework for directors, c-suite and senior executives, and boards helps to drive higher standards in corporate governance in response to the ever-evolving policy, regulatory, macro-economic and governance environment in Ireland.
Demonstrate your commitment to good corporate governance
Discover how to join our collective and become empowered, informed, and supported by a network of fellow pioneering directors.
