New research from S&W finds Irish business owners investing heavily in AI and confident about the economy, but a majority now feel that the government is anti-business, with capital gains tax and personal tax reform top of their wish list for Budget 2027.

Irish business owners are pouring money into artificial intelligence and remain upbeat about Ireland’s growth prospects. Yet according to new research published today by S&W, the accountancy, tax and advisory firm, most now believe that the government is anti-business.

The findings come from The BOSS Report, S&W’s 2026 Ireland Business Owners Sentiment Survey of 500 Republic of Ireland business owners with a turnover of €5m or more. AI is no longer experimental for Ireland’s larger owner-managed businesses. It has become a mainstream investment priority. But views on government policy are far more divided, with tax the clearest source of friction ahead of Budget 2027 on October 6.

Confidence in government strategy despite anti-business perception

Backed by strong growth figures, the government’s economic strategy commands confidence with over three quarters (77%) of business owners surveyed. But concerns about tax and infrastructure also mean that over half

(56%) agree strongly or somewhat that the government is anti-business, up from 36% in last year’s BOSS Report.

 

• 56% say the government is anti-business, up sharply from 36% when S&W asked the same question last year in the 2025 BOSS Report.

• 65% agree strongly or somewhat that CGT should be reduced to 20%

• 63% agree that Ireland’s personal tax regime is a significant barrier in their ability to attract and retain senior talent

 

As in last year’s survey, there is strong dissatisfaction with planning, infrastructure and housing in Ireland, along with worries about inflation, particularly among younger business owners. 59% of those aged under 45 think price rises are very or somewhat likely in the next 12 months, compared with 36% of older owners.

 

• 67% say the pace of infrastructure delivery threatens Ireland’s long-term competitiveness

• 65% say infrastructure deficits are directly affecting operational decisions

• 68% regard planning timelines as overly long and cumbersome

• 63% say housing shortages make it difficult to attract candidates to relocate to Ireland

• 64% say housing shortages have influenced decisions on where to locate offices or facilities

 

AI adoption drives redundancies and hiring freezes

Over half of business owners say they’ve seen redundancies (58%) or hiring freezes (56%) or these are likely in the next 12 months. The most common reason is efficiencies or productivity benefits from

artificial intelligence tools (23%), followed by increasing automation (21%). Over a third of business owners surveyed say hiring freezes or redundancies are likely at their business in the next 12 months.

Asked what benefits they expect from AI, 71% cited increased efficiency or productivity, and half (50%) said it would let them reduce headcount or hiring.  67% said that they expect the technology to enable the development of new products or services

 

 •  71% say their business is actively investing in AI

•  69% have a defined AI strategy

•  73% intend to increase their AI spending over the next 12 months

•  72% see AI as an opportunity for their business

•  73% say AI tools have already significantly increased efficiency or productivity

 

Occupational Pension Scheme Investment

Investment in people, meanwhile, looks to be lagging: 62% say their business only makes the minimum contribution to its occupational pension scheme.

Business owners back new Savings and Investment Account

Two-thirds (66%¹) said such a scheme would encourage them to redirect retained business or personal capital into domestic investment, and 65% said it would have the same effect on the wider public.  Only one in ten (10%) disagree.

John O’Callaghan, Managing Partner at S&W in Ireland, said: “What comes through in this year’s BOSS is how mainstream AI has become for Ireland’s larger owner-managed businesses. It’s no longer a side project. It’s shaping strategy, spending and, increasingly, staffing decisions.

“The uncomfortable part of this year’s findings is the effect that AI’s benefits and its costs are having on employees. Owners are the ones seeing the efficiency gains. It’s staff who are more likely to feel the hiring freezes and redundancies. And with six in ten businesses only making the minimum pension contribution, it raises a real question about how much is being reinvested in people alongside the technology.

“Infrastructure and housing aren’t new complaints but the numbers have moved a long way in a year. Two-thirds of business owners now say the pace of delivery threatens the country’s competitiveness and a similar number say housing costs are costing them candidates.

"Our survey shows that business owners are overwhelmingly confident in the country's economic prospects and in the government's overall strategy for growth. The challenge for policymakers is that this confidence is increasingly being overshadowed by frustration over tax, housing and infrastructure, and a perception that the government is anti-business.

“Budget 2027 gives the government a chance to show it’s listening on tax. Owners want CGT back at 20% and a personal tax regime that doesn’t push senior talent elsewhere.”