How Ireland can capitalise on its ‘digital frontrunner’ status


28 Jan 2025

Image: © SakhanPhotography/Stock.adobe.com

Huawei’s Calvin Lan says Ireland’s digital economy shows strong leadership, but it needs further investment in the right places.

We are moving ever faster towards the intelligent world. The fourth industrial revolution is being catalysed by digital technologies such as AI, 5G, 5GA and green energy.

Every industrial revolution of the past has taken technology to new heights, driven productivity improvement and fuelled leapfrog development around the world. Today, digital and intelligent transformation is ramping up, revolutionising production by helping us advance from simple automation to intelligence.

As the physical world continues to intertwine with the digital world, the digital economy has truly taken off. According to the World Economic Forum, over the next five years, 70pc of global economic growth will be driven by digitalisation and intelligence.

As we look toward 2025, one trend is emerging across the globe: countries that are willing to adopt, and adapt to, innovative technologies will find themselves leading the way in economic growth and innovation.

Countries investing in these technologies are not just upgrading tools, they are creating ecosystems that foster innovation, productivity and economic diversity. Take Ireland, for example. Last year, Huawei and IDC launched the Global Digitalisation Index (GDI) 2024, which highlighted Ireland as a digital frontrunner, ranking it in the global top 10 ahead of Germany, France, and Canada.

This leadership is no coincidence. Ireland has embraced digital transformation across industries, from AI-driven manufacturing to advanced healthcare diagnostics. Technology adoption boosts productivity, reduces costs, and enhances competitiveness.

Supporting smaller companies

Last year, Huawei launched a quarterly Digital Business Index, which indicates the role of business confidence in driving digital investment in Ireland. In terms of AI adoption, approximately 10pc of surveyed businesses, primarily in the B2B sector, identify as advanced users of AI.

While more than one in three (35pc) firms do not use generative AI in any aspect of their business and a similar proportion do not intend using it, this rises to half (52pc) of micro firms (fewer than 10 employees).

So, more work needs to be done to support micro enterprises on their AI journey, whether that is through Government supports, training or consultancy. These companies are the backbone of Ireland’s economy, and they need to be supported. AI integration can streamline production cycles, optimise supply chains and improve resource efficiency – advantages that drive GDP growth and global trade competitiveness.

Infrastructure investments

In the digital age, infrastructure extends far beyond roads and power plants. High-speed internet, 5G networks and secure cloud computing are the foundations of modern economies. Countries investing in these technologies will attract global businesses, drive local innovation and foster sustainable growth.

China’s Port of Tianjin offers a compelling example. By integrating 5G, AI and green energy, the port transformed into a smart, zero-carbon terminal. This innovation reduced container transhipment times by 50pc, energy consumption by 17pc and staffing needs by 60pc, all while operating on green power. Imagine the transformative impact a similar project could have on Dublin Port – it would transform logistics, boost trade and enhance Ireland’s reputation as a global tech hub.

Fostering talent

Digital transformation is not just about technology; it is about people. The future of work demands skills in AI, robotics, data science and cybersecurity. Countries investing in education and training to build these capabilities will create a workforce ready to lead in the digital economy.

Ireland is home to a rich talent pool, a major reason leading global tech companies like Huawei have chosen to locate here. To maintain Ireland’s competitive edge, STEM education should be a top priority and we need to ensure that women are equally represented in these fields. Historically, women have been underrepresented in STEM, a loss for both the industry and society. Addressing this imbalance is not just fair – it is essential for innovation.

The consequences of resisting digital transformation are stark. Economies that fail to adapt risk stagnation, diminished competitiveness and widening digital inequality. Businesses will struggle, industries will falter and workforces will be unprepared for the demands of a digital-first world.

Regions without access to high-speed internet and modern technologies will fall further behind, deepening economic divides. The competitive landscape is shifting rapidly and those unwilling to invest in the future will be left out of global economic success stories.

Ireland’s position as a digital leader is no accident but maintaining it will require bold action. We must prioritise green energy alignment with digital infrastructure, future-proof our computing power and foster a culture of innovation.

By investing in STEM education, especially for underrepresented groups, and supporting small businesses in adopting digital tools, Ireland can ensure a more inclusive and dynamic digital economy. Initiatives like the National Broadband Plan and sustainable energy investments are steps in the right direction, but we must accelerate these efforts.

The fourth industrial revolution is here, and digitalisation is the defining force. The countries that recognise its potential and invest in it will set the tone for global progress in 2025 and beyond. I have no doubt that Ireland will be among them, leading Europe as a digital powerhouse. The future is digital, and Ireland is ready.

By Calvin Lan

Calvin Lan is the CEO of Huawei Ireland.

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