2026 Business & Legal Sentiment Survey

Irish business leaders are entering 2026 with cautious optimism, but pressing concerns over housing, AI adoption, and global uncertainty are shaping strategic priorities. The findings come from our third annual Business and Legal Sentiment Survey, which polled over 1,000 senior business and legal professionals.

Housing and Infrastructure: Ireland’s Biggest Barriers

Nearly half of respondents (48 percent) identify housing affordability and availability as the single most important factor for improving Ireland's competitiveness, up sharply from one third (33 percent) last year.

Public housing emerges as the top infrastructure priority (48 percent), with energy infrastructure following closely. One in six (15 percent) believe electricity interconnection to the UK and Europe is most critical to Ireland’s economic success, and 14 percent point to offshore wind development.

Will Carmody, our Managing Partner, commented:

"Housing and energy infrastructure continue to shape investment decisions. Unless these pressures ease, Ireland’s competitiveness and business growth could be constrained. We are actively working with clients on key housing and infrastructure projects, but the legislative reforms recommended in the recent Accelerating Infrastructure Report need to be quickly enacted to fast-track priority developments, remove uncertainty and free up additional investment."

AI Adoption Signals Workforce Shifts

Artificial intelligence is reshaping workforce planning. Three in ten businesses (30 percent) expect AI adoption to reduce headcount in 2026, outweighing the one in five who anticipate staff increases. Nearly four in ten executives (39 percent) expect AI to boost productivity.

Will Carmody noted:

"AI is transforming business models and workforce strategy. Careful implementation is critical to avoid future legal issues. We are actively testing AI initiatives to streamline our legal services and enhance efficiencies.”

Measured Outlook for Ireland’s Economy

Just over one third of respondents (34 percent) expect the Irish economy to grow by the end of 2026. More than half (52 percent) expect it to remain flat, and only a minority (14 percent) expect a decline. By contrast, our inaugural survey in 2024 found almost a quarter (23 percent) expected the economy to decline and 45 percent expected no growth by year end.

While almost half (47 percent) describe current business conditions as challenging, 44 percent describe the climate as stable, and one in ten (9 percent) report optimism. Sentiment has become steadier over the three years since the survey began, reflecting a more measured outlook.

However, business leaders hold limited expectations for Budget 2026. A quarter of respondents (25 percent) expect it to make business conditions more difficult, while the majority (52 percent) anticipate no meaningful effect.

Confidence in company level growth is strong. Nine out of ten respondents (93 percent) are very (23 percent) or somewhat (70 percent) confident in their organisation’s prospects for 2026. Private equity expectations remain measured. More than two-thirds of respondents (69 percent) expect deal activity to remain steady in 2026, while 19 percent anticipate an increase and 12 percent expect a decline.

Will said:

"Business sentiment is positive, reflecting optimism that the high levels of volatility, particularly in the first half of 2025, have given way to a clearer path to a more sustained growth trajectory in 2026. Many companies have engaged in very detailed strategic planning to respond to the monetary, regulatory and geopolitical uncertainty in 2025, leaving them well positioned to act on opportunities that will arise.”

Regulation and Confidence

Almost half of businesses (49 percent) believe Ireland's regulatory climate poses a competitiveness risk relative to peer countries. Regulatory changes rank as the biggest challenge for 23 percent of companies for 2026.

Despite concerns about regulatory burdens, Irish businesses are prepared. Almost nine in ten (88%) say they are ready for expected regulatory changes in 2026. Technology governance remains the most significant regulatory worry, flagged by almost two-fifths of respondents (39 percent), followed by financial regulation at 26 percent.

Will commented:

"Businesses recognise the importance of robust regulation, but managing cumulative rules across multiple fronts is challenging.”

US Midterm Elections Loom Larger Than EU Presidency

Two out of five respondents (40 percent) believe the 2026 US midterm elections will have the greatest impact on Ireland's economy, outranking even Ireland's upcoming EU Council Presidency (13 percent). Nearly half (49 percent) are most concerned about potential tariffs on Irish or EU exports, while 39 percent cite re-shoring pressure on US businesses operating in Ireland.

Broader geopolitical tensions also weigh heavily. Almost two-fifths (39 percent) see resolution of Middle East or Ukraine conflicts as critical to Ireland's economic trajectory.

Digital and Technology Investment Take Priority for 2026

Half of all businesses (51 percent) rank technology and digital transformation as their top investment priority for 2026. Product or service innovation follows at 19 percent, while workforce development ranks third at 15 percent.

On cybersecurity, just over half (52 percent) feel well prepared to withstand increasing external threats such as fraud and cyber-attacks, with another 43 percent describing themselves as moderately prepared.

Will concluded:

"Irish businesses have matured in their outlook. The shift in sentiment over three years is striking. More than two thirds of leaders expected decline or stagnation in 2024. Almost half expected growth in 2025. The 2026 outlook shows a steadier and more sustainable view of the year ahead. Companies are investing strategically, managing risks proactively and positioning themselves for long term resilience.

Read more about our survey results in the Irish Times, Business Plus, Breaking News and Irish Legal News.