The AI economy in Ireland
Although AI adoption could contribute €250 billion to Ireland’s economy over the next 10 years, half of all organisations still lack clear AI policies, a report has found.
The report, The AI Economy in Ireland 2025: Trends, Impact, and Opportunity, published by the Trinity Centre for Digital Business and Analytics (CDBA), finds that “a supportive AI policy environment” could inject an additional €60 billion into the economy. Widespread AI adoption with supportive policies would result in Ireland’s per capita GDP being 42 per cent higher than if AI adoption does not take place, it claims. However, the report also outlines “a more realistic scenario”, where AI begins in the high-tech sector followed by a “delayed broader adoption”.
“Under this scenario, per capita GDP with supportive policies would still be 8.3 per cent higher compared to a slower adoption case. Over a 12-year period, even with phased adoption, AI integration would lead to a 31 per cent increase in Ireland’s total economic output, underscoring the long-term benefits of AI-driven growth.”
Multinationals lead on policy preparedness as 50 per cent have or are working on an AI policy. Only 10 per cent of public sector organisations have an AI policy, with 40 per cent developing one. Of organisations with revenue exceeding €40 million, 5 per cent do not have an AI policy, compared with 25 per cent of organisations with revenue under €10 million. The report asserts that this signifies a greater need for support and guidance in small organisations regarding AI adoption.
The report found that 75 per cent of organisations recognise AI’s value, up from 65 per cent in the CDBA’s 2024 study. While 65 per cent of small organisations believe in its usefulness, this rises to 85 per cent for large organisations. In the public sector, belief in AI grew from 42 per cent in 2024 to 65 per cent.
Multinationals lead the way
The CDBA found that 9 per cent of organisations do not use AI in any from, down from 51 per cent in 2024. It also found that that the amount of organisations integrating AI across all divisions grew from 1.81 per cent in 2024, to 8 per cent. Multinationals lead in AI-adoption, with 63 per cent actively using the technology. For the domestic private sector, 60 per cent use AI, while the public sector has an adoption rate of 50 per cent.
The report highlights “the prevalence of shadow AI culture”, where employees use AI despite it being against company policy. It found that 13 per cent of organisations strictly prohibit free or public AI tools, but that of this group, 61 per cent of managers said they are aware that employees use these tools. The report asserts that “organisations would likely be better off managing AI usage rather than attempting to prohibit it outright”.
Analysis of AI implementation found that it is instigating “major organisational redesign” in 12 per cent of organisations. The report notes: “However, 50 per cent report little to no productivity gains, highlighting the need for more thoughtfully integrated, enterprise-grade AI tools to drive higher efficiency and transformation.”
Multinationals leverage AI more effectively with 38 per cent reporting no or minor productivity gains from AI, with this figure rising to 51 per cent for domestic public and private sector organisations. The report says: “Organisations may currently view AI as more valuable for strategic transformation rather than day-to-day administrative functions.”
Challenges
Training and workforce readiness were also examined in the report, finding that multinationals report lower investment in end-user AI training compared to Irish-owned organisations. However, 70 per cent of multinationals expressed confidence in their workforce’s AI adaptability, compared with 55 per cent in the public sector.
Recruitment challenges identified in the report necessitate investment in manpower training, curriculum updates, and reskilling initiatives. The report adds: “While talent shortages persist, the situation is gradually improving, potentially due to a combination of increased AI training efforts and a growing talent pool.”
With 56 per cent of organisations claiming sectoral regulations create barriers to implementation, the report illustrates they are “perceived as a major inhibitor to AI adoption”. However, 63 per cent of organisations believe the Government supports AI adoption.
On AI ethics and security the report found that only half of senior managers believe their organisation has a responsible or ethical approach to AI adoption. The report also highlights a “potential gap in security preparedness”, as only 50 per cent of respondents believe their organisation has implemented enhanced security measures in response to AI adoption.
During a Dáil Éireann debate on AI in April 2025, Taoiseach Micheál Martin TD said: “AI can be a game-changer in helping us to deal with many of the economic and societal challenges we face here in Ireland and across the European Union. We need a balanced approach that does not stifle entrepreneurship or over-burden innovative firms with regulation. We must be open to the significant economy-wide productivity gains made possible by fast-growing young firms at the technological frontier.”
