From left: Catherine Doyle, general manager of Microsoft Ireland and Dr Ashish Kumar Jha, associate prof of business analytics at Trinity Business School.
AI adoption has nearly doubled in the region since 2024, with 91pc of organisations using it in some form.
The AI Economy in Ireland 2025 report conducted by Microsoft and Trinity College Dublin has shown that AI could potentially contribute €250bn to Ireland’s economy in the next 10 years.
Trinity College Dublin, in collaboration with Microsoft and market research firm 3GEM, surveyed 300 senior leaders across a diverse range of industries, to ascertain the AI adoption trends impacting Ireland. Interestingly it was shown that Ireland, having previously trailed behind, is now ahead of many of its EU counterparts, as 91pc of organisations have adopted AI.
Depending on how businesses, the Government and industry leaders harness the capabilities of AI and implement policies that foster responsible innovation, research suggests that the €250bn figure could be increased by a further €60bn. Additionally, AI adoption is expected to increase Ireland’s gross national income by at least €130bn by 2035.
“Increasingly recognised as a general-purpose technology, similar to electricity and the internet, AI is becoming a fundamental driver of economic growth and this new report highlights its transformational impact on Ireland,” said Catherine Doyle, the general manager for Microsoft Ireland.
However, there are a number of AI and governance challenges to contend with as, despite the growing popularity of AI, some organisations are struggling to effectively adopt and deploy technologies.
A key issue is the lack of a formal strategy or strong governance frameworks. “In line with the vision of a thriving, competitive AI ecosystem, about half of organisations do not yet have clear AI policies, hindering their ability to manage AI usage effectively,” the report notes.
The survey indicated there is a persistent ‘shadow AI culture’, as 80pc of participating organisations reported that employees are utilising free AI tools lacking in built-in enterprise security controls, with 61pc of managers admitting AI usage is common even in workplaces that have a strict no-AI policy.
Furthermore, SMEs, when compared to larger organisations, are finding it difficult to develop a long-term AI strategy, as the study shows only 10pc of SMEs have one in place, compared to 50pc of multinationals. Issues such as limited expertise and high costs have been cited as significant barriers to wider AI adoption among SMEs.
“While Ireland has the essential ingredients for AI success, we must recognise the challenges that businesses, especially SMEs, face in fully unlocking AI’s potential. At Microsoft, we are dedicated to equipping all businesses with the tools, skills and strategies necessary to excel in the AI-driven economy.
“Overcoming barriers such as expertise gaps, cost constraints and the need for innovative solutions is key. With targeted investments in AI education, scalable technologies and strategic partnerships, we can ensure that the benefits of AI reach every corner of the economy, positioning Ireland as a global leader in AI innovation,” said Doyle.
Earlier this week, CeADAR, Ireland’s Centre for AI, struck a deal with Google to help Irish businesses capitalise on AI. The partnership will focus on building an AI-ready workforce and driving the adoption of AI-powered tools.
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