A new report by Microsoft and Trinity College Dublin projects that artificial intelligence (AI) could contribute €250 billion to Ireland's economy, as measured by GDP, over the next decade. The AI Economy in Ireland 2025 report also indicates that AI adoption is expected to boost Ireland’s Gross National Income (GNI) by at least €130 billion by 2035.
The study reveals a significant surge in AI adoption in Ireland, with the rate rising to 91%—almost double the 49% adoption rate in 2024. This marks a notable shift, positioning Ireland ahead of many EU countries after previously lagging behind.
One key finding in the report is the prevalence of a "shadow AI culture," where employees are using AI tools without organizational oversight. Around 80% of organizations report employees using free AI tools that lack enterprise-level security controls, and 61% of managers admit AI usage in workplaces where it is officially restricted.
The research also highlights a gap in AI adoption between small and medium-sized enterprises (SMEs) and multinational companies. SMEs adopt AI at a rate 30% lower than multinationals, with just 10% of SMEs having an AI strategy compared to 50% of multinational corporations.
In terms of regulatory challenges, Northern Ireland faces more significant barriers, with 80% of organizations citing difficulties, compared to 50% in the Republic of Ireland. Additionally, only 15% of public sector organizations are using AI in most of their decision-making processes.
The report points to the absence of formal strategies and governance frameworks as a key issue, creating gaps in secure and responsible AI adoption. Despite these challenges, 63% of organizations feel that the government is supportive of AI integration.
Catherine Doyle, General Manager at Microsoft Ireland, emphasized the potential for Ireland to lead in the AI era: "With collaboration between government, academia, and industry, Ireland can drive sustainable growth and strengthen its global competitiveness as AI adoption continues to rise."
Dr. Ashish Kumar Jha, Associate Professor of Business Analytics at Trinity Business School and co-author of the report, noted that Ireland is at a critical juncture in its AI journey. "The research shows how far we've come, but the next challenge is moving beyond experimentation to full-scale, strategic implementation," he said.
The study was conducted by the Trinity Centre for Digital Business and Analytics (CDBA) at Trinity Business School, Trinity College Dublin, in collaboration with market research firm 3GEM. It surveyed 300 senior leaders from various industries.