Only 24pc of Irish tech executives said their organisations deployed AI ‘at scale’, a KPMG report has revealed.
Irish companies are trailing behind the global average when it comes to increasing profits through investing in tech updates, a new KPMG report suggests.
Globally, 87pc of organisations reported that tech updates have increased their profits over the last two years, while 72pc of Irish companies said the same, according to KPMG’s Global Tech Report for 2024 that surveyed 2,450 tech executives from 26 countries.
However, less Irish organisations (74pc) said that they struggle to keep up with the rapid pace of change when compared to the global average of 78pc; though only 43pc of Irish respondents said they review and update value-tracking metrics to stay aligned with changes in the market.
More than four-fifths (84pc) of tech executives in Ireland feel that risk aversion made senior leadership move more slowly than competitors while embracing new technology when compared to 80pc globally.
“Tech investments are really paying off for Irish businesses,” said Liam Cotter, the technology practice lead at KPMG in Ireland. “Even with the fast pace of change and the challenges that brings, it’s great to see organisations report higher profits thanks to these investments.”
AI takes a front seat, predictably
Artificial intelligence (AI) has been front and centre in the tech industry for the last few years. The KPMG report revealed that in Ireland, 70pc of the respondents think AI is already increasing productivity, just marginally below the global average of 74pc. However, only 24pc of the respondents in Ireland said they deployed AI “at scale”.
The report notes that there is “significant room for growth” and suggest tech leaders should “build consensus, unlock AI capability and drive trusted AI transformation across their organisations”.
AI is also fuelling anxiety in the workforce, the report noted. More than three in four organisations globally are worried that users see AI as a ‘black box’, while 77pc expect AI to potentially lead to job reduction and cause ethical concerns.
“It’s encouraging to see significant value from AI reported, but it’s equally important to address the concerns surrounding AI’s transparency,” said Rory Timlin, data and AI lead, KPMG Ireland.
“Organisations should consider wider growth opportunities from AI across the enterprise, in addition to near term productivity gains. This approach not only enhances the overall adoption of AI but makes sure benefits are fully realised across the business.”
Cotter advised that businesses need to tackle compliance and governance issues “to fully benefit from digital transformation”.
“Plus, with the EU AI Act now coming into force, staying compliant will be even more crucial,” he said.
KPMG recently reported a slowdown in venture capital activity in Ireland and globally, predicting the downturn to continue in the next quarter.
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