One in three leaders say they are confident of bringing their organisations through the current economic instability.

New research from the ‘Irish Management Institute Leadership Barometer’ surveyed 459 senior leaders in Ireland from private, public and semi-state organisations.

With the looming trade tariffs triggering an uncertain economic future, a third of decision makers remain confident they will still manage their key business objectives.

However, eight per cent of leaders are not confident about their capacity to successfully navigate the volatility ahead.

Nearly half of decision makers (45%) report gaps in financial leadership capabilities, including managing investments and maximising growth.

Seven per cent of leaders report having excellent financial skills that can unlock growth for their business.

But the Barometer also reveals that only 5% of leaders surveyed have the skills to fully harness AI and other digital innovations to drive growth in their organisation.

More than four in ten (44%) of decision makers report having little to no knowledge of how to strategically leverage AI in their operations, reflecting the need for greater upskilling on the technology among leaders.

With increasing regulatory requirements around cyber and AI, findings reveal that many leaders are struggling to keep pace with rapid change.

Only 4% of leaders express high levels of confidence in their capacity to protect and enhance organisational cybersecurity.

While 42% of leaders report having limited knowledge and expertise on how to strengthen their organisation’s cyber controls.

As cyber threats accelerate and evolve in the AI era, these capabilities will need to be addressed as a matter of priority.

The survey did reveal that most business leaders have the capabilities and are committed to fostering a culture of diversity and inclusion in their organisation.

Nearly two-thirds, 62%, of leaders have a high level of awareness and understanding of how to strengthen inclusion and diversity in their workplace.

Commenting on the release of the IMI Barometer, Shane O’Sullivan, CEO of the IMI, said: “As organisations across Ireland face unprecedented economic and geopolitical volatility, decision makers are tasked with leading through this disruption while ensuring their business is fit for the future."

He said the research showed Irish business leaders can respond to the challenges and look for opportunities to grow.

“Despite the complexity of this environment, it’s clear from our findings that many leaders are navigating this evolving landscape with resilience and a measured degree of confidence," he added.

"From the Covid-19 pandemic to the Brexit crisis and supply chain challenges, decision makers in Ireland have learned from their experience leading their organisations through considerable turbulence in recent years and have developed the skills to successfully adapt and grow, in this new era of volatility.

“However, significant hurdles remain ahead. From keeping pace with advances in AI to enhancing financial leadership skills, our findings identify a number of weaknesses in current leadership capabilities.

"Addressing these gaps will be crucial to ensuring leaders are equipped with the key capabilities to navigate the change ahead and drive the future growth and competitiveness of business in Ireland.”

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