More than two-thirds of Irish businesses are looking at ways to use AI to help better run their companies.

But there remains a high level of caution as business leaders try to come to grips with how best to use the new technology.

Authors of a new PwC report into the use of AI by Irish businesses note "the safe and successful deployment is a complex process that requires planning and coordination across the organisation."

PwC's GenerativeAI (GenAI) Irish Business Leaders’ survey of nearly 50 companies aims to capture "what the latest AI and GenAI trends are and where the priorities lie".

It found overall, 86% of business leaders believe AI will in five year's time have had a positive impact on the Irish economy.

Most, 71%, believe it will "significantly" change the way their organisation operates in the next three years.

But 74% have questioned whether GenAI will deliver increased revenue. Currently less than half, 46%, of business leaders are confident in their organisation’s ability to assess return on investment from their current AI initiatives.

Only a fifth of companies said they had an AI and/or GenAI governance structure in place.

However, 86% of businesses welcomed the introduction of the EU AI Act as an important hand brake on the potential negative impact of AI.

The Act provides for European regulation on artificial intelligence (AI) – the first comprehensive regulation of AI by a major regulator anywhere. 

The report also found 81% of business leaders count cybersecurity risks arising from GenAI as a major concern.

The report noted this concern is "driving a significant uplift in activity to mitigate this risk".

David Lee, Chief Technology Officer, PwC Ireland, said: “As evidenced by the marked increase in the reported levels of AI related innovation, the survey highlights that Irish businesses continue to be very engaged in looking to understand the opportunities presented to their business through the adoption of AI. 

"However, the survey results show that business leaders are approaching this in a considered manner.

"Businesses have worked hard to establish relationships of trust with their staff and customers and they want to ensure that these are sustained on their AI journey. 

"They are learning from their innovation activity to date that the safe and successful deployment and sustained adoption of AI is a complex process that requires planning and coordination across the organisation.

“The findings of the survey are very consistent with our experience in the PwC GenAI Business Centre, enabled by Microsoft.

"While organisations are interested in understanding the potential for AI to transform their businesses, their immediate focus is on ensuring that the right guide rails - both organisational and technical - are in place before they move beyond innovation to an adoption at scale mindset.

He added: “It is not a surprise that the survey highlights that the current focus of AI related innovation is on efficiency related gains rather than more radical business model reinvention. 

"In our experience, organisations need to build the confidence and trust in the technologies before they are willing to use them as the bedrock for more fundamental transformation.”