Artificial intelligence is no longer a future technology for Ireland. It is already being used by businesses, workers, consumers and public institutions, while the Government is building a new national framework for AI adoption and regulation.
The latest Central Statistics Office data shows that 20.2% of enterprises in Ireland used artificial intelligence in 2025, compared with 8.1% in 2023. Adoption was substantially higher among large enterprises, at 57.7%.
At the same time, Ireland has entered a new phase of AI policy. The Government published its updated Digital and AI Strategy in February 2026, while the AI Office of Ireland was established in July 2026 to coordinate implementation of the EU AI Act.
The result is a rapidly changing technology landscape affecting Irish businesses, jobs, skills, consumers, regulation and investment.
Key Facts
| Area | Latest evidence |
|---|---|
| Enterprise AI adoption | 20.2% of Irish enterprises used AI in 2025 |
| Change since 2023 | Adoption rose from 8.1% to 20.2% |
| Large enterprises | 57.7% used AI in 2025 |
| Small enterprises | 17.2% used AI |
| EU comparison | Ireland was around the EU average of 20% |
| Government strategy | Digital and AI Strategy published in 2026 |
| AI regulation | AI Office of Ireland established in 2026 |
| AI jobs | Ireland is generating AI jobs at 2–3 times the pace of peer countries, according to EGFSN |
| Business policy | Government is developing sectoral support for AI adoption |
| Main challenge | Adoption, skills and AI capability remain uneven |
Table of Contents
- What is happening with AI in Ireland?
- How many Irish businesses use AI?
- Which Irish businesses are adopting AI?
- How are Irish companies using AI?
- What is happening to AI jobs in Ireland?
- What skills will Irish workers need?
- How is the Government approaching AI?
- What is the AI Office of Ireland?
- What does the EU AI Act mean for Ireland?
- How is AI affecting Irish consumers?
- What are the biggest challenges?
- What happens next for AI in Ireland?
What is happening with AI in Ireland?
AI adoption in Ireland is moving from experimentation towards wider operational use.
CSO figures show that the percentage of Irish enterprises using AI increased from 8.1% in 2023 to 15% in 2024 and 20.2% in 2025.
That does not mean one in five businesses has completely transformed its operations with AI.
The CSO measure covers enterprises using AI technologies in some capacity. The most common applications include data mining, natural-language generation and automation or assistance with workflows and decision-making.
The distinction matters because Ireland’s AI transition is taking place at several different levels.
Some businesses are experimenting with generative AI.
Others are integrating AI into existing software.
Some are building customised systems.
Large technology-intensive organisations may be deploying AI across multiple business processes.
The Irish AI story is therefore less about one sudden technology revolution and more about an expanding layer of AI capability across the economy.
How many Irish businesses use AI?
According to the CSO, 20.2% of Irish enterprises used AI in 2025.
The difference between company sizes is significant.
Large enterprises were far more likely to use AI than smaller businesses:
| Enterprise size | AI adoption in 2025 |
|---|---|
| Small enterprises | 17.2% |
| Medium enterprises | 28.6% |
| Large enterprises | 57.7% |
| All enterprises | 20.2% |
This creates one of the central questions for Ireland’s AI economy:
Can AI adoption spread beyond the largest companies?
The Government is already trying to address this issue.
In 2026, the Department of Enterprise, Tourism and Employment launched its “AI – Good for Business” initiative to help businesses understand practical AI applications and supports.
The department also carried out a sectoral consultation covering manufacturing, tourism, construction and ICT services to inform Ireland’s first phase of a Sectoral Strategy for Enterprise Adoption of AI.
Is Ireland ahead of the rest of Europe on AI?
The answer depends on what is being measured.
Ireland has a major multinational technology sector, a strong digital economy and a large concentration of technology companies.
But the CSO’s enterprise-adoption data gives a more nuanced picture.
Ireland’s 20.2% enterprise AI adoption in 2025 was broadly in line with the EU average of 20%.
Denmark recorded 42%, while Finland recorded 37.8%.
That means Ireland has made substantial progress without being the highest-adoption EU economy on this particular measure.
This distinction is important.
Ireland’s strength in AI cannot be measured only by the percentage of businesses using AI.
Investment, multinational activity, research, talent, infrastructure, startups, regulation and the country’s role in the European technology ecosystem also matter.
How are Irish businesses using AI?
The CSO’s data shows that AI is being used across several business functions.
In 2025, the most common AI application was data mining, used by 10.8% of enterprises.
Natural-language generation was used by 9.3%, while 6.2% used AI for automating workflows or assisting in decision-making.
AI was also being used for:
- business administration
- marketing and sales
- ICT services
- research and innovation
- accounting and financial management
- production
- logistics
Business administrative processes were the most commonly reported purpose, at 7.8% of enterprises.
This suggests that AI adoption is not limited to technology departments.
It is increasingly becoming a business-process issue.
Why are some Irish businesses still slow to adopt AI?
The barriers are not purely technological.
Research from ESRI into Irish micro, small and medium-sized enterprises found that knowledge-related barriers were important in explaining differences in current adoption and investment intentions. The study also identified factors including finance, security concerns and skills as important influences on future investment.
That creates a practical adoption problem.
A company may have access to ChatGPT, Microsoft Copilot or another AI service but still lack:
- an AI strategy
- suitable data
- employee training
- security controls
- governance
- integration with existing systems
- clear business objectives
- measurement of financial or operational results
AI availability and AI transformation are therefore not the same thing.
What is happening to AI jobs in Ireland?
AI is also changing Ireland’s labour market.
The Government’s Expert Group on Future Skills Needs reported in August 2026 that Ireland is generating AI jobs at two to three times the pace of peer countries. It also described Ireland as a leading country for AI skills while warning that adoption is uneven across businesses and individuals.
This means the AI jobs story is broader than specialist roles such as machine-learning engineers.
AI is increasingly affecting existing occupations.
Accountants may use AI for analysis.
Lawyers may use AI for document review.
Developers may use AI coding tools.
Marketing teams may use AI for research and content workflows.
Financial professionals may use AI for information analysis.
Managers may use AI to automate administrative processes.
The important change may therefore be the tasks performed within a job rather than the disappearance of the job title itself.
For a detailed examination of the Irish jobs market, CPSU’s separate article covers AI-related hiring, skills and changing occupations in Ireland.
What skills will Irish workers need?
The growth of AI creates demand for both technical and non-technical capabilities.
Workers increasingly need to understand:
- how AI tools work
- what AI systems can and cannot do
- how to check AI-generated information
- how to protect sensitive data
- how to apply AI to a specific profession
- when human judgement is still required
Domain expertise also remains important.
A worker who understands an industry and can use AI effectively may have a different advantage from someone who knows AI technology but does not understand the business problem.
This is why AI literacy is becoming a workforce issue rather than simply a technology issue.
Ireland’s AI strategy has changed in 2026
Ireland’s Government published its updated Digital Ireland – Connecting Our People, Securing Our Future strategy in February 2026.
The strategy contains 90 deliverables and is built around five broad ambitions:
- Apply digital and AI solutions.
- Grow the digital economy.
- Invest in digital and AI infrastructure.
- Lead as a digital regulatory hub.
- Empower people with skills and digital literacy.
The Government’s stated ambition is to strengthen Ireland’s position as a digital leader and global hub for applied AI innovation.
This means AI is now embedded in Ireland’s wider economic and digital policy rather than being treated as a standalone technology issue.
What is the AI Office of Ireland?
One of the most significant AI developments in Ireland during 2026 is the creation of the AI Office of Ireland.
The Regulation of Artificial Intelligence Act 2026 established the Office as an independent statutory body and Ireland’s central coordinating authority for implementation of the EU AI Act.
The Office is responsible for coordinating the work of Ireland’s relevant competent authorities.
It acts as a single point of contact for the EU AI Act involving the European Commission, national authorities and the public.
It also has responsibilities around:
- regulatory coordination
- technical expertise
- supervision
- cooperation between authorities
- AI innovation
- AI adoption
The change is significant because AI regulation in Ireland now has a dedicated institutional centre.
What does the EU AI Act mean for Ireland?
The EU AI Act applies directly across EU Member States, including Ireland.
Ireland’s 2026 legislation establishes the domestic architecture needed for supervision and enforcement of the regulation.
The Irish model uses a distributed system of competent authorities, coordinated centrally by the AI Office of Ireland.
For businesses, this means AI governance is becoming an operational issue.
Companies need to understand:
- what AI systems they use
- what role they have in the AI supply chain
- what obligations apply to those systems
- what documentation is required
- how risks are managed
- how employees use AI
- how personal data is protected
- how AI-generated decisions are governed
The exact obligations depend on the AI system and the organisation’s role under the regulation.
What about AI and Irish consumers?
AI is already present in consumer technology in Ireland.
The CSO reported that more than four in ten Irish internet users used virtual assistants such as Alexa or Siri in its relevant consumer research. In 2024, 28% of internet users reported smart solutions for household energy management, while around 15% used smart household appliances.
AI is therefore not confined to business software.
It increasingly appears in:
- smartphones
- smart speakers
- wearables
- home security
- energy management
- search
- online shopping
- customer service
- financial services
- health-related consumer devices
But consumer adoption also raises questions about privacy, transparency and trust.
Do Irish people trust the Government to use AI?
The answer from recent CSO research is mixed.
The CSO’s Trust Survey 2025 found that 56.1% of respondents said they understood AI well enough to explain it to someone else, while 41.9% had a general understanding.
However, confidence in government use of AI was considerably lower.
Almost half of respondents were not confident that Government could use AI to reduce costs, while 49.9% were not confident in its ability to provide services better tailored to individual needs.
Data protection was an especially important concern.
The findings show that public acceptance of government AI will depend not only on whether systems work, but also on whether people trust institutions to use personal information appropriately.
Is AI good for the Irish economy?
AI has the potential to increase productivity, improve services and create new business opportunities.
The Government’s Digital and AI Strategy explicitly links AI with economic growth, competitiveness and innovation.
But the economic impact is not automatic.
PwC Ireland reported in June 2026 that only 17% of Irish CEOs in its survey said AI had delivered increased revenue during the previous 12 months, while 23% said it had delivered cost reductions.
This highlights a key distinction:
AI experimentation is not the same as measurable economic value.
Irish businesses still need to identify where AI actually improves productivity, reduces costs, increases revenue or improves customer outcomes.
What are the biggest AI challenges for Ireland?
Ireland’s AI transition creates several major challenges.
1. Uneven adoption
Large organisations are adopting AI considerably faster than small enterprises.
2. Skills
Workers and businesses need practical AI capabilities rather than access to technology alone.
3. Regulation
Businesses need to understand increasingly complex AI governance requirements.
4. Data protection
AI systems can create significant data-governance issues, particularly when sensitive or personal information is involved.
5. Cybersecurity
AI can improve security but can also increase the scale and sophistication of cyber threats.
6. Productivity measurement
Businesses need to distinguish genuine productivity improvements from simple increases in AI-generated output.
7. Public trust
Government and businesses need to demonstrate that AI is being used responsibly.
What happens next for AI in Ireland?
Ireland is entering a second phase of AI adoption.
The first phase was largely about awareness and experimentation.
The next phase is about deployment, integration, regulation and measurable value.
The Government is developing targeted support for enterprise adoption, while the AI Office of Ireland provides a new institutional structure for AI regulation.
The labour market is also changing as demand for AI-related skills increases.
For Irish companies, the question is increasingly:
Where can AI create measurable value while remaining secure, compliant and useful?
For workers, the question is:
How will AI change the tasks and skills required in my profession?
For consumers, the question is:
How will AI affect the services, products and decisions I interact with?
And for policymakers, the challenge is balancing innovation with safety, privacy, competition and public trust.
The bottom line
AI is becoming a mainstream part of Ireland’s technology and business landscape.
Enterprise adoption more than doubled between 2023 and 2025, while Ireland has introduced a new national Digital and AI Strategy and established the AI Office of Ireland.
But the Irish AI story is not simply about how quickly companies adopt the technology.
The bigger question is whether Ireland can turn AI adoption into sustainable productivity, new businesses, better public services and stronger career opportunities while ensuring that smaller companies, workers and consumers are not left behind.
The evidence available in 2026 suggests Ireland has moved beyond the question of whether AI matters.
The next question is how effectively Ireland can use it.
Takeaways
10 key facts
- 20.2% of Irish enterprises used AI in 2025.
- Enterprise AI adoption rose from 8.1% in 2023 to 20.2% in 2025.
- 57.7% of large enterprises used AI in 2025.
- Small-enterprise adoption was 17.2%.
- Ireland’s enterprise adoption was around the EU average of 20%.
- The Government’s new Digital and AI Strategy contains 90 deliverables.
- The AI Office of Ireland was established in 2026.
- Ireland is generating AI jobs at 2–3 times the pace of peer countries, according to EGFSN.
- AI adoption is substantially higher among large enterprises than small enterprises.
- Public confidence in some forms of government AI use remains limited.
FAQ
1. What is happening with AI in Ireland in 2026?
AI adoption is increasing across Irish businesses, workplaces and consumer technology. Enterprise AI use reached 20.2% in 2025, while Ireland has introduced a new Digital and AI Strategy and established the AI Office of Ireland.
2. How many Irish businesses use AI?
CSO data shows that 20.2% of Irish enterprises used AI in 2025. Adoption was 57.7% among large enterprises, compared with 17.2% among small enterprises.
3. Is Ireland a leader in AI?
Ireland has significant technology investment, talent and multinational activity, but its enterprise AI adoption rate of 20.2% was around the EU average in 2025 and below Denmark and Finland.
4. Is AI creating jobs in Ireland?
Yes. Ireland’s Expert Group on Future Skills Needs reported strong growth in AI-related employment and said Ireland is generating AI jobs at two to three times the pace of peer countries.
5. Will AI replace jobs in Ireland?
AI is likely to automate some tasks and change others, while also creating new roles and skills requirements. The scale of future job displacement depends on adoption, technology development, business decisions and workforce adaptation.
6. What is the AI Office of Ireland?
The AI Office of Ireland is an independent statutory body responsible for coordinating implementation of the EU AI Act in Ireland.
7. What is Ireland’s Digital and AI Strategy?
Ireland’s Digital and AI Strategy is the Government’s national framework for digital transformation and AI through to 2030, covering public services, business, infrastructure, regulation and skills.
8. What does the EU AI Act mean for Irish businesses?
The EU AI Act creates obligations for organisations depending on their role and the AI systems involved. Ireland’s 2026 legislation establishes the domestic regulatory architecture and the AI Office coordinates implementation.
9. What are Irish businesses using AI for?
CSO data shows applications including data mining, natural-language generation, workflow automation, administration, marketing, accounting, production and logistics.
10. What are the biggest barriers to AI adoption in Ireland?
Research points to barriers including knowledge, skills, finance, security concerns, integration and the ability to identify useful business applications.
11. Do Irish consumers use AI?
Yes. CSO research found widespread use of virtual assistants and increasing use of connected and smart-home technologies.
12. Is Ireland’s AI economy growing?
AI adoption, AI-related employment and government support are all expanding, but the economic benefits are not automatic. Businesses still need to turn AI experimentation into measurable productivity, revenue or service improvements.
