How CFOs in Ireland are charting a course for growth and expansion

On average, expected growth for the coming year is 9%, edged down slightly from the last two years’ surveys but still quite exceptional against a backdrop of geopolitical turbulence, global trade tensions, and the growing uncertainty since the new US administration took office on 20 January 2025.

What growth are you anticipating in your organisation this financial year?

Finance leaders in Ireland clearly remain positive regarding growth prospects for their organisations in the coming year.

This year’s survey shows a strategic pivot towards expansion and capital investment as critical drivers of growth. 22% of this year’s respondents cite capital investment as a priority for the year ahead — more than twice the proportion of respondents who said so last year.

Simultaneously, there’s a significant decline year on year in the emphasis on cost reduction as an area of focus for the next two years.

Reducing costs through other means

This suggests an increased willingness to invest in business growth and innovation with a focus on improving existing products and developing new ones to drive revenue growth rather than simply cutting costs to improve margin. Indeed, 28% of the respondents to this year’s survey cited expansion into new markets as a top priority for driving growth in the year ahead, compared to just 13% who said so last year.

The increased focus on new markets and on innovation in products and services is a very welcome sign and a step towards increasing competitive advantage amid today’s challenging global environment. This approach reflects a recognition of the importance of international expansion to drive growth opportunities.

Priorities for driving growth in the year ahead

What are your priorities for driving growth in the year ahead?

The findings may also be reflective of a build-up of capital in businesses that is now available to be deployed for investment in growth and other areas such as expansion into new markets and talent development.

It is encouraging to see continued focus on data and insights as skills and knowledge in those areas will be a prerequisite for the successful adoption and implementation of AI and GenAI, with 20% of the respondents claiming that investment in technology infrastructure, advanced AI and data analytics is a priority area to drive growth in the year ahead. The data suggests that operating models will need to adapt to continued automation and the adoption of AI and advanced data analytics technologies.

Cost pressures and the impact on bottom lines emerged as one of the top risks for businesses over the next 12 to 24 months, cited by 47% of respondents. Energy costs are on finance leaders’ radar amid ongoing geopolitical conflicts and domestic bottlenecks, as are wage costs given the relatively tight nature of the labour market.

Risks over the next 12 to 24 months

What are the top two risks to your business in the next 12 to 24 months?

Talent acquisition and retention rank among the top risks, with 46% of finance leaders expressing concerns for the next 12 to 24 months. The need to adapt to the fast-evolving technology landscape and advancements in AI is closely linked to these talent concerns.

Supply chain vulnerabilities and disruptions come further down the risk ranking, along with trade barriers where the agenda of the new US administration could potentially push up costs and impact global supply chains.

Challenges ahead

Having to adapt to a fast-changing technology landscape and advances in AI was also high on the list of challenges with 31% citing it.

The reliance on manual processes and controls persists as an issue for the finance function, with 24% of the respondents to this year’s survey identifying it as a challenge facing them in the next five years. This compares to 22% of respondents in last year’s survey who identified it as one of the main barriers to achieving their desired level of growth in the next five years.

As finance leaders navigate technological advancements and talent management issues, the need for process modernisation and automation assumes ever-increasing importance.

E-invoicing calls for prompt action

As the EU gears up for a digital overhaul in VAT reporting, businesses in Ireland face the challenge of implementing e-invoicing and real-time reporting requirements by 2030. With only 9% of the surveyed finance leaders noting they feel prepared for it, there’s a need for increased awareness and action.

While the implementation date may be some way off, this finding suggests a low level of awareness among Irish businesses of the new requirements.

Half of the respondents say investing in new talent is a top priority for driving growth in the year ahead. It is not surprising that 61% of finance leaders say developing future leaders, people management and talent retention is a top area of focus for the next two years, a notable increase from 44% last year.

Talent has consistently emerged as a key theme in our CFO surveys of the past two years and this year’s survey findings reaffirm its importance.

Challenges related to talent acquisition and retention are not new and in a full-employment economy are likely to persist for some years to come. People are now seeking roles that offer personal development opportunities, where salaries alone are no longer the deciding factor.

Emerging skill arc

The emphasis on talent is crucial at a time when finance teams are increasingly focused on automation, deployment/adoption of AI and the consequent upskilling and reskilling requirements. A future-focused finance team’s skill needs are diversifying and will demand roles such as data analysts, AI experts, and operational specialists, including AI integration, predictive analytics, cyber risk, and sustainability experts. The real challenge for many organisations will be to nurture in-house talent in these specialised fields while retaining their existing workforce.

The AI and technology agenda will have a strong influence on the finance team roles that will be required in the next 24 months. While qualified accountants still form the majority of finance teams and account for 62% of the roles in the organisations surveyed, the growing presence of data and AI professionals - who now represent 32% of roles - is a noteworthy trend.

Just over half of the survey respondents feel prepared with ongoing skill development plans in place, but there are clearly some challenges with upskilling and training required at an individual and team level.

Level of preparedness for future challenges

How prepared do you feel for the evolving demands of your role and how equipped is your finance team to handle future challenges?

While the expectation is that it will grow strongly in the coming years, AI usage remains modest. Just 12% have leveraged AI for any aspect of their role or across their finance team in the past year, primarily for efficiency and automation, and 11% are cautiously exploring potential AI usage and investment through pilot projects and trials. In terms of investment in AI, just 1% described it as high.

A top challenge facing the finance function in the next five years is having to adapt to the fast-changing technology landscape and advances in AI as indicated by 31% of the respondents. AI holds transformative potential for the finance function and could revolutionise everything from data analysis to strategic decision-making. Yet its adoption in the finance sector is still in its infancy with only a fraction of organisations harnessing its capabilities. This gap between potential and actual use underscores a significant opportunity for those ready to embrace AI to not only streamline operations but also to gain a competitive edge in financial intelligence and innovation.

Investment in technology infrastructure, advanced AI and data analytics is a priority area for driving growth as the technology is creating new value for organisations across the globe. It represents a significant growth opportunity, with one in five respondents acknowledging it as a key area for advancement. While most of the organisations that took part in our survey are still at the very early or even experimental stages of AI deployment, there is a clear recognition of the need to lay the groundwork for its future integration.

A significant number of respondents plan to spend more time developing a stronger understanding of data analytics, predictive analytics and decision science. In the coming year, 24% of respondents say most time will be devoted to developing stronger understanding of these areas, while for 10% it will be spent on facilitating AI adoption across the organisation.

These findings are particularly welcome as a clear barrier to the adoption of AI and other advanced technologies in organisations is the lack of an obvious value creating business case.

The increased focus on providing financial planning and analysis, cited by 45% of respondents as a priority for the next two years, up from 34% last year, is worthy of note. It has been recognised that finance teams need to automate traditional functions as much as possible and zone in on more value-adding areas such as forecasting and providing insights to the overall business. AI and data analytics and the ability to use them to best effect will play a key role in that shift.

Importance of data quality

Successful AI adoption is dependent on data quality and the ability of the organisation to use it properly. Both these areas require investment. The focus must move beyond simple data cleansing to integrating business logic for a cohesive strategy for the finance function.

Effective leadership in this respect is key as finance leaders need to understand, firsthand, AI’s capabilities and be aware of emerging trends that highlight the rise of autonomous AI platforms, AI-enhanced decision-making or edge AI for immediate insights.

As organisations ramp up their adoption of AI, they need to proactively strengthen their cybersecurity strategies to address any potential risks.

69% of respondents say they have increased investment in training in the past two years to improve cybersecurity for the finance function, while 52% have increased investment in security tools.

Which actions, if any, have you taken in the past two years to improve cybersecurity for the finance function?

However, by contrast, just 17% of the respondents cited cybersecurity as a key risk and only 8% said it would be an area of focus for the next two years. In addition, only 11% had increased the cyber budget in the past 12 months, down from 16% last year.

Cyber plans and risk mitigation measures may well have become more of a business-as-usual topic, but one that is constantly up for discussion.

The landscape for environmental, social, and governance (ESG) and sustainability efforts present a varied picture. In Ireland, half of the finance leaders surveyed indicate that sustainability reporting and compliance will be a top focus area in the next two years, up from 41% who said so last year.

Supporting Corporate Sustainability Reporting Directive (CSRD) / ESG reporting and compliance is rated second among the areas where most time will be spent over the next 12 months due to the expanding remit of the finance leader’s role, with it being cited by 21% of the finance leaders surveyed.

At the same time, just 7% rate climate change as a key risk over the next 12 to 24 months. This could suggest a disconnect between the finance function and the overall sustainability agenda. With scientific data indicating that 2024 was the hottest year in recorded history and the growing frequency of extreme weather events like the catastrophic and tragic floods in Spain, it must be seen as a cause for concern that the main driver of ESG focus currently is the regulatory reporting regime.

Barriers to undertaking effective ESG/non-financial reporting

What do you see as the barriers to your organisation undertaking effective ESG/non-financial reporting?

The most cited barrier to effective ESG and non-financial reporting was the lack of priority placed on it by organisations’ leadership. That is likely due to several factors, one of which is the variety of other issues competing for organisations’ attention. It may also be reflective of the changing tenor in relation to ESG at EU level and in other quarters.

In late February, the EU proposed changes to sustainability legislation through the Omnibus simplification package, aimed at enhancing competitiveness by reducing regulatory burdens and aligning with the Green Deal, now the Clean Industrial Deal. This initiative seeks to streamline sustainability reporting and due diligence requirements, potentially impacting many clients who may no longer qualify for CSRD or face deferred timelines. Significant changes are expected, affecting procurement rules, funding, employee sentiment, and carbon-related taxes, while clients aim to protect their investments in compliance with CSRD requirements¹.

Our State of Sustainability 2024 report showed a business community at a tipping point, with significant changes in behaviour and sentiment. The findings underscored that the link between sustainability and profitability is increasingly influencing corporate strategies.

Summary

Despite the growing geopolitical turbulence in global markets, finance leaders in Ireland remain optimistic in relation to growth prospects for the year ahead. They are strategically focusing on expanding into international markets and investing in technology infrastructure, innovation and skills development to fulfil their growth ambitions as they prepare to meet the challenges ahead. Those challenges range from the rapid pace of technology development to difficulties in attracting and retaining talent. They continue to place significant emphasis on cybersecurity and ESG reporting compliance.

About the Survey/Methodology

The EY Ireland CFO Survey 2025 was conducted by Empathy Research on behalf of EY during December 2024 and January 2025. The study used Computer Aided Telephone Interviews (CATI) to gather insights from 200 CFOs or senior financial decision-makers across organisations with at least 50 employees. The survey encompassed a diverse range of sectors that included Consumer and Health, Industrial and Energy, Government and Infrastructure, and Telecommunications, Media, and Technology.