Artificial intelligence

On Thursday 29 May, Chartered Accountants and Sia launched our new Virtual Reality training programme aimed at developing Professional Scepticism skills in junior and trainee auditors. The launch provided us with the opportunity to break down barriers and perceptions that exist around VR in Learning & Development and allowed us to demonstrate what is possible when you take a chance on innovation!  Trish O’Neill, Head of Member Innovation at Chartered Accountants Ireland said: “When you spend so much time working on the finer details of a project you can forget the importance and potential impact of the final result. For the past year I have worked closely with Aisling Mooney, Catherine O'Doherty, and Charles Lonjaret on developing our second Virtual Reality programme. On Thursday 29 May we had the pleasure of sharing our VR design experience with colleagues and members from Chartered Accountants Ireland and Sia”. Speaking at the launch, Aisling Mooney, Learning Design Specialist at Chartered Accountants Ireland, shared some insights on the benefits of learning through immersive technology, saying that it “gives learners a consequence-free space to make mistakes, get real-time feedback, refine their approach, and even test the outcome of a wrong approach. This promotes active skill application and helps learners build confidence in their skills, which is essential for a well-rounded professional accountant”. The atmosphere at the launch was full of positivity and excitement and it was a great reminder that what the team has created is quite exceptional. Gary O'Sullivan, Managing Partner UK & Ireland at Sia noted that "it is the only one of its kind in the world!". Eamonn Siggins, Chief Integration Officer at Chartered Accountants Ireland remarked that “teaching professional scepticism through immersion in virtual reality is innovation in action.” More about the programme: We have created an on-site audit simulation training programme designed to help junior and trainee auditors develop their Professional Scepticism skills. Through Virtual Reality, learners are immersed in realistic audit scenarios, allowing them to practice professional scepticism in a safe environment where they are able to make mistakes, learn from their mistakes, and try again without the risk of real-life repercussions. By combining cutting-edge technology with deep industry expertise, we’ve created a global first in professional accounting education. For anyone with trainee accountants looking to improve their Professional Scepticism skills, we would be delighted to bring this training experience to your organisation. You can contact Trish O’Neill on patricia.oneill@charteredaccountants.ie to learn more. This initiative was made possible thanks to funding from Skillnet Ireland and our Network Manager Niamh Sheehan.

Grit Young outlines 10 key strategies to help Ireland’s tech firms unlock real value from their investments in artificial intelligence Artificial intelligence (AI) deployments in technology companies often fall short of expectations due to a lack of preparedness for the level of change and costs involved. To succeed, tech companies must shift their focus from merely integrating AI into traditional business processes to fundamentally rethinking and reinventing their operations for an AI-first era. To help ensure success, companies in Ireland should seize the opportunity to explore 10 key areas that can drive AI value creation. 1. Turn potential into performance improvement Tolerance for low returns on AI spend has reached a breaking point as organisations across all sectors seek tangible yields from their investment in the technology. Tech companies need to establish clear frameworks to measure the operational and financial impact of any AI solutions they implement. This will help to demonstrate quantifiable business value and return on investment, thereby differentiating their offering in an increasingly crowded market. 2. Drive growth through an agentic AI future Agentic AI can execute complex tasks independently, potentially transforming how tech companies and their customers operate their businesses.   Tech companies must capitalise on the opportunities presented by agentic AI to secure an early mover advantage for themselves and their customers. The emergence of AI agents that can enhance an organisation’s workforce could provide a viable solution for Irish companies seeking to avoid relocating their headquarters to overseas locations, such as to the US, to attract a broader talent pool, as has occurred in the past. Consequently, these agents could enable Irish organisations to scale operations in Ireland, ultimately benefiting the domestic economy. 3. Adopt outcome-based pricing models Pricing needs to move from a purely software-as-a-service (SaaS) subscription model to an outcome-based model aligned with customer value expectations. Customers increasingly expect tangible results from the products they purchase. Simply providing access or usage will no longer be sufficient to justify a charge; a clear outcome will be required. The move to outcome-based pricing will not be easy. Demonstrating outcomes and communicating them to customers will require a major shift in current practices. However, tech companies will likely have no choice but to do this, given changing customer demand. 4. Tap into the power of the AI-first operating model The competitive advantage enjoyed by born-digital tech companies over legacy organisations is now being outstripped by AI-born companies and their distinct structures and operating cultures. Simply bolting AI onto an existing operating model will not be sufficient to bridge this competitive gap. Organisations will need to rethink and reimagine their structures and operating models to become more like this new wave of competitors.  5. Unlock the value of AI expertise Tech companies have an opportunity to position themselves as key partners in their customers’ AI transformation journeys by offering tailored solutions addressing both the infrastructural and operational aspects of AI adoption. Customers will increasingly ask for AI offerings that do not require the costly replacement of legacy IT infrastructure and architecture. This presents an opportunity for tech companies that can provide such solutions. 6. Develop new skill sets for the AI era Tech companies can help drive growth by equipping their workforce with future-ready skills through targeted training programmes. By embracing more immersive training and learning environments, such as virtual and augmented reality, tech companies can better assess skill gaps, provide on-the-job support and ensure employee capabilities are fit for purpose. Today’s employees are increasingly demanding continuous learning in and through the use of emerging technologies. Embedding generative AI in learning and development programmes will help meet these expectations. 7. Involve all business functions from the outset Changes in tax, trade and regulatory requirements should be anticipated and addressed up front. In a rapidly shifting global tax and regulatory environment, treating tax or local regulatory issues as an afterthought—particularly when pursuing a transaction or making an AI-driven change to your operating model—is fraught with risk. Finance, tax and legal professionals should be involved in the process from the outset, so that decisions can be made without the risk of giving rise to unforeseen financial, tax or legal liabilities. 8. Use AI to bolster cyber defences The EY 2024 Global Cybersecurity Leadership Insights Study found that AI delivered a 40 percent increase in cybersecurity teams' efficiency. The technology offers more effective and comprehensive cybersecurity through the automation of threat and vulnerability detection and response. The built-in learning and adaptation capabilities of AI can help organisations stay ahead of the next major threat. The same tools are available to bad actors, who can use AI to amplify their ability to identify vulnerabilities and penetrate systems by an order of magnitude. Thus, it is all the more important for organisations to meet heightened cyber threats by using AI to strengthen defences and maximise incident response when breaches do occur. While there are many good cyber education programmes in Ireland, widespread adoption of AI as a cyber defence tool remains rare. The Irish government is actively promoting cyber security programmes and Enterprise Ireland provides grants to client companies to help bolster their cyber defences.  9. Explore ways to free up capital for AI investment While investment in AI capabilities is driving higher valuations for many tech companies, the cost of such investments is placing many of the companies concerned under strain. The capital-intensive nature of AI investment may require tech companies to consider the divestiture of non-core operational elements and underperforming assets. Such sales can provide a fresh source of capital for AI investment and create more streamlined and profitable businesses.  The big technology companies constituting the foundation of Ireland’s foreign direct investment landscape have historically expanded through acquisition rather than divestiture. If these companies consider divesting, it could impact their operations in Ireland. How any new buyer decides to manage the business will depend on their overall strategy, which could prompt them to keep, expand or scale back their presence in Ireland. 10. Engage with regulators The European Union’s AI Act, Digital Services Act, and General Data Protection Regulation are just a few examples of the regulations governing tech companies in Europe. Governments around the world are also developing policies and regulations on topics that affect tech companies. Regardless of size, tech companies can seek to influence the regulatory direction of travel by collaborating with industry groups and national government agencies. The aim should be to seek a more harmonised global regulatory environment which supports innovation while protecting citizens and addressing societal concerns. Grit Young is Technology, Media and Entertainment and Telecommunications Industry Leader at EY Ireland

Agentic AI could help close the gap between investment in AI and the low returns it offers businesses today. David Lee outlines its potential to future-proof growth and profitability The disconnect between the efficiency gains promised by artificial intelligence (AI) and its impact on corporate balance sheets is among most significant challenges facing businesses today. PwC Ireland’s latest CEO survey revealed that 94 percent of chief executives expect AI to be embedded in their workflows within three years. Less than a quarter can demonstrate any meaningful profitability improvements from their investment in AI, however. This gap demands attention as organisations move beyond AI experimentation. With close to one-third of Irish CEOs believing their organisation won’t exist in its current form 10 years from now, there is greater pressure to deliver higher returns from AI investment. Agentic AI—technology capable of autonomous decision-making and actioning—could offer the requisite bridge between personal productivity improvements and enterprise-wide transformation. The state of AI adoption AI sentiment around boardroom tables presents a striking paradox. Despite operating in unparalleled macroeconomic conditions, 93 percent of Irish business leaders maintain a remarkably positive outlook on revenue growth, according to PwC’s CEO Survey. This optimism exists alongside a profound recognition of the need for internal transformation, however. Close to 30 percent of Irish CEOs do not believe their organisation will exist in its current form within a decade. This creates a strong case for AI investment as business leaders race to reinvent their organisations. Six-month trends reveal an acceleration in structured AI implementation, with the proportion of Irish organisations kickstarting formal plans and active projects jumping from 50 to 70 percent. Herein lies the central challenge. While efficiency improvements are widely evidenced, only a quarter of these organisations have translated such gains into profits. This value leakage—from potential to profit—demands explanation. Agentic AI to the value gap If conventional AI has delivered incremental benefits without proportional financial returns, Agentic AI could offer a more compelling proposition. The distinction is not merely technical but fundamental to how value is created and captured. Agentic AI—systems capable of autonomous decision-making, action-taking and process optimisation—represents a shift from what might be termed “intelligent data manipulation” to “intelligent workflow execution”. This transition is the difference between personal productivity and enterprise productivity; between automating discrete tasks and reimagining entire processes. Diverse applications from all areas of the business can be united in their focus on end-to-end processes, rather than isolated tasks. This is precisely the shift needed to bridge the gap between efficiency and profitability. Strategic implementation framework Translating Agentic AI’s potential into sustainable financial returns requires a deliberate approach that strikes a balance between innovation and pragmatism. The following framework offers a pathway. The progression from conventional to Agentic AI implementation is evolutionary rather than revolutionary. The most successful organisations establish proof points through targeted deployments before attempting wholesale business model reinvention. This approach creates the reference experiences necessary to build internal confidence and stakeholder support. Successful and sustained AI adoption must also address obstacles simultaneously. A sequential approach—solving technical challenges before addressing governance concerns, for example—invariably creates impediments to scale. The most effective organisations pursue parallel workstreams that address technology implementation, organisational capability building, governance development, stakeholder engagement, cybersecurity and security enhancement. Particular attention should be paid to the behavioural change requirements. The adoption curve for AI follows predictable patterns—early enthusiasts, the pragmatic majority and reluctant laggards. Effective adoption strategies account for these different constituencies, rather than designing exclusively for the enthusiasts. The behavioural shifts required to support Agentic AI extend beyond initial adoption to continuous learning as capabilities evolve. This differs from the “train once” deployment models of traditional technology implementations. Implementation must also proceed at a pace that maintains trust across all stakeholder groups. Trust, once compromised, requires disproportionate effort to restore—a calculation that justifies measured progress over hasty deployment. Balancing innovation and pragmatism The value gap between AI’s promised benefits and its profit delivery represents the central challenge for business leaders navigating the current wave of technological disruption. With nearly a third of Irish CEOs questioning their organisation’s future in its current form, the imperative to bridge this gap has never been more acute. Agentic AI offers a pathway from incremental improvement to fundamental transformation by shifting focus from isolated task automation to orchestrated process reimagination. Organisations demonstrating measurable financial returns have moved beyond the “faster horses” mindset to rethink how work itself should be structured and executed. Yet, technology alone cannot close the value gap. Successful implementation requires simultaneous attention to business case development, organisational capability building, governance structures, stakeholder trust and security considerations. The most effective approaches strike a balance between innovation ambition and implementation pragmatism, building reference experiences before attempting wholesale business model reinvention. The most valuable lesson from early adopters is perhaps counterintuitive: the strongest financial returns often come, not from cost reduction through displacement, but from capacity expansion through augmentation. As organisation’s progress from experimentation to enterprise adoption, they would do well to remember that AI is not just a “new tool”. Rather, it represents a fundamental shift in how work is conceived and executed. Those who approach it merely as a means to do existing things more efficiently will find themselves with faster horses in an age that demands flying cars. David Lee is Chief Technology Officer at PwC Ireland