Nearly two-thirds (62%) of Ireland's top companies have adopted artificial intelligence technologies to support their operations, research by Deloitte and the UCD Michael Smurfit Graduate Business School shows.

Naturally, adoption is advanced fastest fastest in technology-driven sectors with 94% of technology, media and telecommunications (TMT) businesses surveyed saying that they use AI.

The top use cases for AI include employee support and internal productivity (28%), operational efficiency and automation (22%), and sales/marketing and customer engagement (15%).

Separately, operational process improvements (55%) are the leading innovation priority across companies surveyed. A total of 115 indigenous, private limited businesses participating in Deloitte's Ireland’s Best Managed Companies programme took part in the study.

“Rising costs continue to challenge businesses across the board, but Ireland’s Best Managed Companies are powering through with remarkable resilience, unstoppable ambition, and an unwavering commitment to excellence," said Brian Murphy, lead partner for the Ireland's Best Managed Companies Awards Programme.

“Innovation is a key theme; and across every industry, launching new products and services is the top growth strategy for the next five years. These companies are not just talking the talk, they’re walking the walk, with 62% already harnessing the power of AI to enhance productivity.

A third (33%) of firms listed the cost of doing business as a top challenge and a key strategic focus, rising to 41% among family businesses and 51% in the consumer industry.

Talent acquisition and retention remain high on the agenda with 23% of companies naming it as a key challenge, and the leading barrier to growth at 28%.

When asked about their talent retention strategies, 95% of companies surveyed said they were prioritising the improvement of engagement between employees and management.

Additionally, 78% said they were increasing investment in professional development, while 72% are introducing wellbeing programmes, and 66% are increasing staff compensation.

"Talent acquisition and retention remain tough battles, but the Best Managed Companies are winning by putting their people first; focusing on employee engagement and investing heavily in professional development to boost overall performance," said Murphy.

One in four companies (25%) said they are monitoring policy changes and trading dynamics closely as geopolitical and regulatory challenges remain present.

A strong majority (57%) of companies reported that women make up at least 20% of their C-suite, and 16% have achieved gender balance at the top level, but STEM-focused sectors have had less success in gender balancing their boardrooms.

Developing new products and services emerged as the foremost growth strategy, with nearly two-thirds (65%) of companies indicating it will play a key role in their growth plans over the next five years.

A total of 55% of respondents expect to grow their business through M&A activity, while international expansion and increasing headcount were each cited by 52% of companies. Only 9% of businesses said they would use third-party debt for growth.

Over three quarters (76%) of technology, media and telecommunications companies cited M&A as a key growth strategy, and 71% are allocating resources to international expansion to accelerate growth and capture new market opportunities.

Private equity-backed businesses are also prioritising international growth, with 57% of planning to expand overseas.

“This survey of Ireland’s Best Managed Companies sends a clear message: we must champion our homegrown businesses, fuel their growth, and support their scaling journey to become the next wave of great Irish success stories," Murphy concluded.

This year’s winners of the Ireland’s Best Managed Companies programme will be announced on Thursday, 25 September. For more information about the programme, visit deloitte.ie/bestmanaged. 

(Pic: Getty Images)