The IMI (Irish Management Institute) has published new research highlighting a significant digital readiness gap among Ireland's leadership. Just 5% of decision makers surveyed have the skills to fully harness the potential of AI and other digital innovations, while more than 4 in 10 (44%) report having little to no knowledge of how to strategically deploy AI within their organisation.

As regulatory pressure intensifies and cyber threats become more sophisticated, the research also reveals that just 4% of leaders express high levels of confidence in their capacity to protect and enhance organisational cybersecurity. Meanwhile, 42% report having limited knowledge and expertise on how to strengthen their organisation's cyber controls.

The IMI Leadership Barometer surveyed 459 senior leaders from private, public, and semi-state organisations across Ireland, providing key insights into the attitudes and capabilities of decision makers navigating a complex business environment shaped by economic and geopolitical disruption.

As leaders respond to the threat of potential trade tariffs and ongoing volatility, 1 in 3 (33%) decision makers say they are confident about their capacity to successfully steer their organisation through this period of disruption and achieve key business objectives. Conversely, 8% say they are not confident in their ability to navigate the volatility ahead.

The findings also reveal that nearly half (45%) of decision makers report gaps in financial leadership capabilities, including managing investments and maximising growth. Just 7% of leaders report having excellent financial skills that can unlock business growth.

Despite these challenges, the research highlights strength in leadership around culture and inclusion. A majority of leaders (62%) report having a high level of awareness and understanding of how to foster diversity and inclusion in their workplace - an encouraging signal amid global rollbacks in this space.

Commenting on the release of the IMI Barometer, Shane O'Sullivan, CEO of the IMI, said: "As organisations across Ireland face unprecedented economic and geopolitical volatility, decision makers are tasked with leading through this disruption while ensuring their business is fit for the future. Published today, the IMI Leadership Barometer provides a timely insight into the capabilities of Irish business leaders to respond to these challenges and seize new opportunities for growth.

"Despite the complexity of this environment, it's clear from our findings that many leaders are navigating this evolving landscape with resilience and a measured degree of confidence. From the Covid-19 pandemic to the Brexit crisis and supply chain challenges, decision makers in Ireland have learned from their experience leading their organisations through considerable turbulence in recent years and have developed the skills to successfully adapt, and grow, in this new era of volatility.

"However, significant hurdles remain ahead. From keeping pace with advances in AI to enhancing financial leadership skills, our findings identify a number of weaknesses in current leadership capabilities. Addressing these gaps will be crucial to ensuring leaders are equipped with the key capabilities to navigate the change ahead and drive the future growth and competitiveness of business in Ireland."

For more on the future of leadership and the key capabilities necessary to drive growth and innovation over the coming years, explore the IMI's white paper 'Why Learning Today Can Shape Tomorrow' here.