Millennials, malware and macro politics are among the thorny subjects occupying the minds of Irish CEOs, according to new research from KPMG.

The 2018 KPMG CEO Outlook garnered insights from Irish CEOs and compares them 1,300 of their global peers. The study found that while Irish bosses are confident of at least modest business growth over the next three years, they are mindful of the challenges too.

Most (72%) Irish business leaders predict an uplift of under 2% over the next three years, and 24% expect growth of between 2% and 5%. Meanwhile, just over two-thirds of respondents expect headcount growth of under 5%.

Reinforcing the extent to which cybersecurity is impacting on their thinking, the KPMG survey found that 32% of Irish CEOs see the issue of a cyber-attack as a case of ‘when’, not ‘if’. Some 48% expressed confidence in their ability to identify new cyber threats, while only 44% are confident in their levels of preparedness.

Just over half (56%) of respondents feel able to manage external stakeholders in the event of such an attack.

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Concerns about a return to territorialism were highlighted in a number of countries and also cited as one of the most important issues for business leaders in the Ireland. "Brexit, US tax policy and the threat of protectionism in the form of trade wars have all moved geopolitical issues up the risk agenda for Irish business with international operations," said Shaun Murphy (pictured), managing partner in KPMG.

Embracing Disruption

Disruption is being welcomed as an opportunity by 96% of CEOs in Ireland, while only 16% believe their organisation is struggling to keep pace with the rate of technical innovation in their sector. Most CEOs (84%) believe they are actively disrupting the sector rather than waiting to be disrupted by others.

Other KPMG findings show that 76% of CEOs are prepared to personally lead their organisation through a radical transformation to maintain competitiveness. However, one in five have concerns about their current leadership team and whether it is fully equipped to oversee the radical transformation their business needs.

Almost half (48%) of those surveyed have already begun a limited application of artificial intelligence (AI) in the automation of processes. Almost all (96%) respondents believe that the most likely impact of artificial intelligence and robotic technologies will be to create more jobs than it eliminates.

The Generation Game

Millennials also weigh heavy on Irish CEO minds. A significant number (40%) of those surveyed said understanding how the needs of millennials differ from older customers is a challenge. Around the same percentage said that responding to the expectations of millennials is difficult.

Other challenges include appointing senior team members who can better relate to millennials and attracting millennials’ attention amidst competing brands.

“Ireland’s CEOs are leading their businesses at a time of great change,” Murphy added. “Our survey shows they are having to be agile in order to meet the challenges.”