A new report from Microsoft and Trinity College Dublin has projected that the widespread adoption of Artificial Intelligence could add a substantial €250 billion to Ireland’s economy, measured by GDP, within the next 10 years.
The report, titled The AI Economy in Ireland 2025, forecasts that AI adoption will increase Ireland’s Gross National Income (GNI) by at least €130 billion by 2035. This surge in AI uptake signals a pivotal shift for Ireland, positioning the country as a leader in AI adoption within the European Union.
Significant Growth in AI Adoption
According to the study, AI adoption in Ireland has skyrocketed to 91%, nearly doubling from 49% in 2024. This remarkable leap puts Ireland ahead of many of its EU counterparts, marking a major milestone in the country’s digital transformation.
Despite these positive trends, the report also highlights the ongoing challenges surrounding AI use in the workplace. A concerning issue is the rise of a “shadow AI culture,” where employees independently use AI tools without oversight from their organisations. The report found that 80% of companies report employees using free AI tools without proper enterprise security controls. Moreover, 61% of managers acknowledge that AI is being used in workplaces where its use is officially restricted.
The Gap Between SMEs and Multinationals
The research also reveals a notable disparity between small and medium-sized enterprises (SMEs) and multinational corporations in terms of AI adoption. SMEs are adopting AI at rates 30% lower than their multinational counterparts, with only 10% of SMEs having an AI strategy compared to 50% of multinationals.
In addition, regulatory barriers to AI adoption were found to be more pronounced in Northern Ireland, where 80% of organisations reported challenges compared to 50% in the Republic of Ireland.
Public Sector Challenges and Opportunities
The report also points to the public sector’s slow adoption of AI, with only 15% of public sector organisations utilising AI in most decision-making roles. One of the primary challenges cited is the lack of formal strategies and governance frameworks, which creates gaps in secure and responsible AI implementation.
Despite these obstacles, 63% of businesses expressed confidence in the government’s support for AI adoption, recognising its potential to drive economic growth.
A Collaborative Approach for Future Growth
Catherine Doyle, General Manager of Microsoft Ireland, emphasised the importance of collaboration between government, academia and industry. “With a collaborative approach across these sectors, Ireland can play a leading role in the era of AI, driving sustainable economic growth and setting the stage for global competitiveness as AI adoption continues to surge.”
Dr. Ashish Kumar Jha, Associate Professor of Business Analytics at Trinity Business School and co-author of the report, noted that while Ireland has made significant progress in AI adoption, there is still much work to be done. “This year’s research underscores both the progress made and the work still to be done,” he said. “AI adoption in Ireland has nearly doubled in the past year, but the challenge now is moving beyond experimentation to full-scale, strategic implementation.”
Conclusion
The research, conducted by the Trinity Centre for Digital Business and Analytics (CDBA) at Trinity Business School, in collaboration with market research firm 3GEM, surveyed 300 senior leaders across diverse industries. The findings suggest that AI is not just a tool for digital transformation, but a significant driver of economic growth for Ireland in the coming years.
As AI adoption continues to evolve, Ireland is positioned to capitalise on this emerging technology, driving innovation and securing a competitive edge in the global economy.
Call to Action
If you’d like to delve deeper into how these trends can reshape your organisation, we would be delighted to discuss them in more detail. Invite Mark Kelly, Founder of AI Ireland, to speak at your next team meeting, conference or strategy session. We can explore practical ways to harness AI responsibly, meet sustainability goals, and navigate the evolving consumer landscape. Let’s work together to ensure Ireland remains at the vanguard of innovation in 2025 – and beyond.
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