Nine in 10 (90%) Irish business leaders will adjust their investment plans due to rising geopolitical instability and escalating trade tensions, the latest CEO Outlook Survey from EY Ireland has found.

Nearly three-quarters (73%) of respondents said they had delayed a planned investment and 8% have stopped a planned investment entirely due to the uncertainty catalysed by US President Donald Trump's planned tariff regime, but four in 10 CEOs plan to pursue M&A activity.

A total of 1,200 executives globally, including 40 leading CEOs in Ireland, answered the survey between March and April during the immediate aftermath of the introduction of global tariffs by the White House.

The study found that 57% of Irish business leaders now see geopolitical disruption as the number one threat to growth, compared to 42% of international CEOs who said the same.

Additionally, 80% of Irish respondents expressed worries about the financial impact of tariffs, slightly below the 85% of their global counterparts.

EY said that leaders are taking action to stay competitive, starting with detailed impact assessments and scenario modelling to understand where they’re most exposed, what actions they need to take and what levers to pull.

“The findings show just how quickly Irish businesses are adapting to a more fragmented global landscape," said Helena O'Dwyer, partner and head of strategy at EY-Parthenon Ireland.

"CEOs are not waiting around for an ideal moment or future resolution, they’re taking the initiative now with the things they can control, making smart bets, and maintaining momentum.

"Many are exploring new market opportunities, redesigning pricing models, shifting sourcing to tariff-free markets, and rethinking growth strategies to navigate the fallout from protectionist policies and regulatory fragmentation.

"We can see that leaders are choosing action over perfection and building business models that can flex with whatever comes next.”

The 38% of Irish CEOs planning to pursue M&A activity this year pales in comparison to the global average of 57%. Among those companies seeking out deals, 47% are prioritising pacts that bring in new technology or intellectual property, while 40% are targeting operational synergies or to drive cost transformation, not just expansion.

Two-thirds (65%) of CEOs said that they are exploring strategic alliances or joint venture, lower-risk forms of growth, and 54% are seeking to combine complementary capabilities, such as manufacturing infrastructure or brand reach.

A further 46% are focused on sharing financial and operational risks, reflecting a pragmatic approach in capital-intensive industries or turbulent markets.

“While Irish CEOs are showing more caution around M&A this year compared to their global peers, those who are pursuing deals are doing so with clear strategic intent. It’s no longer about scale for its own sake, it’s about fit, capability, and long-term value," said Carol Murphy, partner and head of markets at EY Ireland.

"Nearly half of CEOs pursuing deals are targeting technology or IP, especially AI solutions, that they can’t build fast enough in-house, while others are focused on unlocking synergies and driving cost transformation.”

Murphy said alliances and joint ventures "are not fallback options; they are smart plays to combine complementary strengths and share risk in a volatile environment.

"The most successful leaders are treating integration and execution as central to value creation, not afterthoughts. That’s the hallmark of a more disciplined, more resilient dealmaking mindset.”

Despite some backlash against diversity, equity & inclusion (DE&I), 83% of Irish CEOs are maintaining or strengthening their DE&I commitments, including embedding it into leadership accountability, workforce policy and business performance, compared to 75% of their global peers.

This comes as the regulatory landscape continues to evolve, with the EU Pay Transparency Directive set to drive greater scrutiny around gender pay and workplace equity from the middle of 2026.

“What’s clear from the data is the vast majority of CEOs aren’t treating DE&I as a tick-box exercise or a reputational add-on. They see it as part of how they manage risk, meet compliance expectations and build stronger, more competitive organisations," said O'Dwyer.

Finally, the survey found that 40% of respondents are prioritising developing in-house AI expertise and governance, betting on the transformative technology to create long-term value.

A further 40% said they have increased AI spending, focusing on tools that enhance customer experience, detect fraud more effectively and streamline supply chains.

Notably, 36% said they are scaling up after early pilots delivered tangible results, suggesting that AI is moving from experimentation to execution. O'Dwyer said the findings made it clear that AI is "moving from hype to impact."

Photo: Helena O'Dwyer. (Pic: Supplied)