Over half of Irish business leaders not using AI, despite Government’s ambition to lead globally

55% of directors and senior executives report their organisations do not have a board-approved Artificial Intelligence (AI) strategy in place. A survey conducted by the Institute of Directors (IoD) Ireland has revealed. Despite the Irish Government’s stated ambition for Ireland to become a global leader in AI, only 49% of respondents indicated their organisations are currently leveraging AI to support business operations, the survey also found.

The survey findings underscore the strategic importance of AI to future business competitiveness. When asked about its relevance to their sector, 40% of respondents cited AI as important for enhancing operational efficiency, while 25% viewed it as critical for maintaining a competitive edge. An additional 19% acknowledged its potential benefits, though not yet essential across all businesses.

Respondents identified key drivers for AI adoption, including automation of routine tasks, enhanced decision-making accuracy, innovation-led competitive advantage, and strengthened cybersecurity and fraud detection capabilities.

Despite rising numbers of digital threats, 79% of IoD members reported their organisations had not experienced a cyber security incident in the past year.

Commenting on the survey results, Caroline Spillane CDir, CEO of IoD Ireland, stated:

“Our latest research confirms that members increasingly recognise Artificial Intelligence as a critical enabler of long-term competitiveness. These insights have informed the development of new resources, training programmes, and strategic guidance designed to embed leading AI governance practices and elevate cyber security awareness as core elements of corporate governance frameworks. Engagement with our member base, encompassing both early adopters and those still evaluating AI integration, has highlighted a strong appetite for practical insights on leveraging AI to enhance operational performance.”

Caroline continued:

“AI is also driving significant transformation across the Irish business landscape and is prompting important conversations around cyber security which is a major operation risk to business. Establishing a robust incident response plan is no longer simply a matter of regulatory compliance – it is a fundamental component of resilient and future-ready business operations. With the adoption of NIS2 just around the corner it is important for board members to be aware of the extra responsibilities this will bring.”

The survey also highlighted that 73% of respondents are aware of their personal liability as directors in the event of serious non-compliance with the Network and Information Security Directive 2022/2555 (NIS2). This EU directive, which came into effect on 17 October 2024 and is due to be implemented in Ireland later this year, introduces strengthened obligations and extends its scope to additional sectors. Notably, NIS2 places explicit responsibility for cybersecurity at board level.

Even entities not directly in scope may be affected through supply chain obligations. NIS2 requires organisations to establish and implement supply chain security policies governing relationships with suppliers and service providers.

Encouragingly, 70% of respondents reported that their organisations are prepared for NIS2 compliance, reflecting an increasing awareness of the regulatory and governance imperatives associated with cybersecurity in the digital era.

Given the pace of change associated with emerging technology, IoD Ireland has launched two new workshops dedicated to supporting directors and C-suite leaders;

• Workshop: Cyber security and Data Protection Governance. Led by Dr Valarie Lyons, who is an IoD Ireland Faculty member, and also Company Director, and Chief Operating Officer, BH Consulting.
• Workshop: Digital and AI for Boards: Mastering the Essentials. Led by Garvan Callan, who is IoD Ireland Faculty member, and a Strategist, Innovator and Transformation Advisor.