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Irish Examiner
3 days ago
- Business
- Irish Examiner
Manufacturers need to invest in AI or risk falling behind, PwC advises
Irish-based manufacturers need to accelerate their adoption of AI tools to avoid being left behind Europe, Middle East and Africa, experts at PwC have advised. Just 3% of Irish manufacturing companies have fully integrated AI into their operations versus 8% for EMEA companies. While the gap cited in PwC's report 'AI in Operations — Revolutionising the manufacturing industry' isn't huge, Irish firms are being urged to act now and not let it widen. Áine Brassill, operations transformation partner, PwC Ireland, takes heart from the survey findings that there is a lot of AI innovation and piloting going on, with many Irish firms clearly looking to catch up. 'Around 70% of Irish respondents are piloting and scaling up their AI projects compared to 55% for EMEA counterparts. We can, therefore expect a surge in widespread AI implementation in Irish manufacturing in the years to come,' said Áine. 'While the initial focus regarding AI implementation is on operational and productivity improvements, the real interest lies in the potential to disrupt and fundamentally reinvent existing business models. AI agents will make the ability for AI systems to autonomously perform tasks a reality, enabling decision making and delivering real competitive differentiation. 'However, building trust in AI will be critical for customers, regulators and employees. Companies need to be confident in the integrity of solutions that will drive safe and secure AI outcomes. Taking a responsible approach, including upskilling employees, will be critical to getting the most from AI alongside confirming future compliance with regulators and the EU AI Act.' Áine Brassill, operations transformation partner, PwC Ireland. The report found that both Irish and EMEA manufacturers believe in AI's potential to increase profitability. Irish operations, however, are less optimistic than their EMEA counterparts as regards their belief in what AI can deliver. Some 73% of Irish manufacturing operations expect AI to increase profitability by 2030 versus 84% of EMEA respondents. Just 26% of Irish respondents expect AI to increase profit margins by at least 6% by 2030, trailing the 40% of EMEA manufacturers. The report features 400 manufacturing operations' executives in over 30 countries in Europe, Middle East and Africa, including Ireland. In Ireland, 43% of respondents were in pharma/life science and med-tech multinational operations with the balance in retail and consumer and industrial products. AI in Ireland is also maturing relatively slowly. Some 29% of Irish respondents reported no business benefits as yet from AI versus 14% for the EMEA. Just 4% of Irish and EMEA manufacturers have already enjoyed financial benefits and return on investment from AI. A further 11% report that they have received measurable financial benefits (EMEA: 13%). Irish manufacturing operations are also investing less in AI initiatives than their EMEA counterparts. In the last five years, 32% of Irish manufacturing operations invested less than €1m in AI initiatives (EMEA: 29%). 15% invested in excess of €6 million compared to 41% for their EMEA counterparts. In both Ireland and EMEA, progress is slow on AI. Just 3% of Irish manufacturing companies have fully integrated AI into their operations compared to 8% for EMEA companies. At the same time, there is a lot of AI innovation and piloting going on with many Irish firms clearly looking to catch up: 70% of Irish respondents are piloting and scaling up their AI projects compared to 55% for EMEA counterparts. We can therefore expect a surge in widespread AI implementation in Irish manufacturing in the years to come. Gary Hanniffy, director of manufacturing, PwC Ireland, said: 'Like many businesses, the manufacturing industry is facing significant uncertainty stemming from geopolitical disruption, economic fragmentation, supply chain volatility, tightening regulation, climate change, technology transformation and increasing costs. 'AI offers a real opportunity for business model reinvention for manufacturing operations and our study shows that the potential benefits from AI will justify the effort. The survey suggests that manufacturing operations can become more competitive as a result of full-scale AI adoption. 'The survey highlights that a majority of Irish manufacturing operations, consisting largely of pharma, life sciences and med-tech multinational companies, are piloting AI initiatives rather than having moved to scaling and integrating the technology right across their business operations while EMEA companies are more advanced in their implementation journey. 'At the same time, they do have high expectations for realising the benefits from AI in terms of profitability and other financial benefits,' Gary added. 'Getting to the next level requires investment and results here are mixed, with some companies planning significant investment levels, others are not yet ready to commit. In Ireland, in particular, more investment in AI is also needed to keep up with EMEA peers.' Read More Business movers: People starting new jobs in Ireland The survey highlights a number of key challenges for successful AI implementation. These include: data quality; IT & data security; reliability of AI-generated content and data availability. Gary Hanniffy said: 'Strong organisational structures and processes are essential for steering and delivering a successful AI strategy and to enable safe and secure outcomes. Those manufacturing organisations who have integrated and scaled up their AI projects are using an organisational governance model that involves a central AI team (Ireland: 100%; EMEA: 71%). 'On the other hand, the majority of those organisations that have just started piloting AI lack coordinated governance and are using non-centralised organisational structures (Ireland: 76%; EMEA: 58%). This finding is in line with PwC's earlier 2025 GenAI Business Leaders survey, indicating that more work needs to be done on AI trust and governance such as building appropriate governance structures.'
Irish Times
5 days ago
- Business
- Irish Times
How to manage your pension in these volatile times
Donald Trump's second term in the White House has seen markets go through a period of extreme volatility, something that has worried many Irish pension holders. How should they react? Should they react at all? And what is the outlook for the rest of this year? Munro O'Dwyer is a partner at PwC Ireland and joins host Cliff Taylor in studio to discuss managing your pension in volatile times. In the second half of this episode of Inside Business, Irish Times Economics Correspondent Eoin Burke-Kennedy looks at why so many companies are pulling back from their pledge to go green and lower carbon emissions. READ MORE This alarming trend is worrying given the latest analysis by the Environmental Protection Agency that shows that Ireland is going backwards in its attempts to achieve its 2030 greenhouse gas emissions targets. So why the about-face on an issue that affects us all? Is reaching net zero emissions simply not realistic for many companies? Produced by John Casey with JJ Vernon on sound.
Business Post
23-05-2025
- Business
- Business Post
PwC expands cyber defences with new risk management services
PwC Ireland has launched two critical risk management services from its National Cyber Managed Services Centre in Cork, responding to escalating third-party supply chain and cybersecurity threats facing Irish businesses. The firm unveiled its expanded third-party risk management (TPRM) service, addressing fundamental gaps in how organisations protect themselves against risks arising from supplier vulnerabilities. This offering is complemented by a new threat and vulnerability management (TVM) service, focusing on digital attack prevention. Urgent need for TPRM The timing of the TPRM service launch aligns with a pronounced shift in corporate risk management priorities and an urgent market need. With businesses becoming increasingly reliant on external partners, end-to-end risk profiles have intensified substantially. The enhanced TPRM offering provides comprehensive solutions spanning regulatory, financial, strategic and system risks across wider business operations. According to PwC's 2025 Global Digital Trust Insights, 74% of organisations will prioritise cyber risk mitigation in 2025. This underscores a broader transformation in business risk management approaches, with a particular emphasis on third-party risks. Regulatory pressures further accentuate the need for robust TPRM. Key legislation including the Digital Operational Resilience Act (DORA) and the European Network and Information Security Directive (NIS2 Directive) demand far greater vigilance regarding supply chain risks. These regulations require organisations to maintain comprehensive oversight of third-party relationships and demonstrate robust security frameworks. Complementary TVM service While TPRM addresses supply chain vulnerabilities, the threat and vulnerability management service employs industry-leading technology to identify security weaknesses throughout organisations. The TVM solution can integrate with existing in-house security operations, potentially reducing overheads while boosting operational efficiencies. Evolving threat landscape Traditional approaches to supplier risk management and cybersecurity have become increasingly inadequate. With a majority of business leaders identifying exposure to macroeconomic volatility, geopolitical risks, cyber threats, technological disruption and skills shortages in PwC's 2025 CEO Survey, organisations face an unprecedented complexity of interconnected risks. Artificial intelligence presents additional security challenges. PwC's 2024 GenAI Business Leaders Survey found that 91% of respondents believe Generative AI (GenAI) will likely increase cybersecurity risk. This emerging threat vector requires sophisticated detection and response capabilities beyond traditional security measures. Strategic imperative Data from PwC's Global Advisory Thought Leadership Accelerator reveals compelling economic arguments for comprehensive managed services adoption. Businesses that fully embrace managed services as a strategic imperative enjoy a 12.4x performance premium compared to those using such services solely for cost reduction. This performance differential reflects the fundamental shift required in modern risk management. The old methodologies for managing third-party risks and cybersecurity have become obsolete as new threats emerge alongside rapidly evolving technologies. The complexity of managing these risks within regulated environments continues to escalate. Irish CEOs recognise this transformation imperative, with 94% expecting AI to be integrated into business processes and workflows in the next three years according to PwC research. However, ambitious companies face significant obstacles balancing day-to-day operations with long-term strategic objectives. Operational benefits The managed services model allows businesses to redirect resources towards core growth strategies. By outsourcing critical risk management functions, organisations can achieve better focus on strategic objectives while maintaining comprehensive protection against evolving threats. PwC's Managed Services practice provides support across multiple critical areas including operations, regulation and compliance, risk management, financial and strategic risk, innovative technology integration and systemic risk. This comprehensive approach enables businesses to address interconnected risks through a single provider relationship. The Cork-based National Cyber Managed Services Centre serves as the operational hub for these expanded offerings. The facility represents a significant investment in Irish risk management infrastructure and demonstrates PwC's commitment to supporting local businesses facing global threats. As organisations navigate an increasingly complex risk landscape, the integration of comprehensive managed services appears essential for maintaining competitive advantage. The ability to focus on core business activities while ensuring robust protection against third-party and cyber risks may determine which companies thrive in an uncertain environment. Féilim Harvey is a Partner at PwC Ireland.
Irish Times
02-05-2025
- Business
- Irish Times
Microsoft's massive Irish dividends
Microsoft's Irish subsidiaries paid dividends worth $41 billion (€36.3 billion) to its US parent across its 2024 financial year and the first months of 2025, as the tech giant's Irish business continued to grow. The payments are likely to be noticed in Washington, given the Trump administration's focus on getting American firms to shift business back to the US. Ciara O'Brien has the details. The chief executive of Ires Reit, the largest private apartments owner in the State, has called for a simple increase to the current rent cap in housing pressure zones, in order to encourage investors and developers back into this area of the housing market. Joe Brennan has the story, after sitting down with Eddie Byrne for an interview . PwC Ireland reported a 2.8 per cent increase in net revenue last year to €469 million, the latest transparency report for the Big Four accounting and consulting firm has revealed. Ciaran Hancock reports. Glanbia's top brass came in for relentless criticism this week at its AGM, as angry investors unloaded their ire over a weak share price and apparent struggles at the company. Eoin Burke-Kennedy asks what has gone wrong for the Kilkenny-based company. READ MORE In World of Work, Margaret E Ward looks at why short tempered bosses are a recipe for disaster. Northern Ireland's economy has long been an underperforming part of the UK, and these days also trails the Republic. In his column, John FitzGerald looks at the issue, and possible fixes. Galway-based Complete Laboratory Solutions (CLS) is investing €9 million in staff training as it expands into new sectors and eyes up the prospects for international expansion. Dominic Coyle has the story. The levels of capital investment by Irish SMEs had not recovered from the 'scarring effects of the pandemic' in 2023, a study by the Economic and Social Research Institute (ESRI) has found. Hugh Dooley reports. Hugh also reports that global investment fund Ara Partners has raised more than $800 million (€708.7 million), sweeping past its fund target of $500 million with the aim of scaling companies with significant decarbonisation impacts. Just weeks after winning his first Masters title, Rory McIlroy is linking up with investment firm TPG to launch a sports fund , joining an increasing number of current athletes delving into asset management. Dublin-based Smurfit Westrock said net sales for the first quarter of the year rose to $7.66 billion (€6.7 billion), following its merger last year that saw it create one of the largest packaging groups in the world. Ciara and Joe read the accounts. AIB's financial performance was better than expected in the first quarter of the year, its chief executive said on Thursday, despite fears that Trump administration policies will hit global trade and economic growth. Joe has the details. Stay up to date with all our business news: sign up to our Business Today daily email news digest. If you'd like to read more about the issues that affect your finances try signing up to On the Money , the weekly newsletter from our personal finance team, which will be issued every Friday to Irish Times subscribers.
Irish Times
02-05-2025
- Business
- Irish Times
PwC Ireland's revenues rise 3% to almost €470m
PwC Ireland reported a 2.8 per cent increase in net revenue last year to €469 million, the latest transparency report for the Big Four accounting and consulting firm has revealed. In gross terms, it revenue was €569 million, up 9.6 per cent on 2023. However, its 'expenses and disbursements on client engagements' rose by 59 per cent to €100 million. This delivered a net revenue of €469 million. All of the figures exclude VAT and relate to income generated by PwC's firms in the Republic and Northern Ireland. It does not include fees earned in Ireland by PwC firms regulated in other markets. READ MORE The report shows that audit work accounted for €147 million (up €3 million on a year earlier) of net revenue, with an additional €47 million (up €13 million on 2023) generated from non-audit clients. This was up 9 per cent on a year earlier for the assurance arm of the firm. PwC generated €188 million in net revenue from taxation services, up 7.4 per cent on 2023. However, net revenue from advisory services declined by €16 million to €107 million. 100 days of Trump: 'It's like The Karate Kid, tax on, tax off, tariffs on, tariffs off' Listen | 42:49 This included €63 million (up from €59 million a year earlier) concerning revenue from permitted non-audit services to entities that are audited by the Republic of Ireland firm of PwC. This line of work comprises information security, consulting, strategy and performance improvement services, M&A advisory, project finance, insolvency, restructuring, transaction support and integration, valuations, business modelling and human capital services. PwC is led by managing partner Enda McDonagh and employs more than 3,500 people from offices in Dublin, Belfast, Cork, Galway, Kilkenny, Limerick, Waterford and Wexford. The firm has 148 partners, with its public interest body, which includes four independent non-executive directors, is chaired by Mark Ryan . The report also includes details on PwC's move to net-zero carbon emissions. In 2024, its total carbon emissions were 3,234 tonnes, a 60 per cent reduction from the 2019 baseline set by the firm 'despite a modest 2 per cent increase from 2023″. Its natural gas emissions were up 6.77 per cent from 2023, while electricity emissions were eliminated by switching to renewable energy. In terms of business travel, emissions have dropped by 46 per cent from 2019 but a 1.31 per cent increase was recorded last year.
