The use of artificial intelligence is expected to add at least €250 billion to Ireland’s economy within 10 years, new research has claimed, but a growing gap between large enterprises and small businesses could see the latter fall behind.
The report from Microsoft and Trinity Business. School was estimated a further €60 billion in gross domestic product could be gained over that period by putting in place supportive policies and business environments.
Gross national income, meanwhile, could be boosted by at least €130 billion.
The study, which was conducted with 300 senior leaders across the island of Ireland, found that use of the technology among Irish businesses had surged in the past year, with 91 per cent of Irish businesses now using the some form of the technology, versus 49 per cent a year earlier.
”While these rates demonstrate a growing use of AI in any form, what’s more inspiring is the rate of organisations with a strategic approach to AI, which is now at approximately 22 per cent,” said Microsoft Ireland general manager Catherine Doyle.
“The rapid acceleration reflects Ireland’s strong appetite for AI, driven by a combination of growing business confidence, increased availability of AI-powered tools, and a supportive regulatory environment. While adoption rates are high, the focus now must shift towards strategic implementation, ensuring that AI is deployed in a way that maximises efficiency, innovation, and long-term competitiveness.”
However, businesses are integrating AI gradually rather than restructuring around the technology, the survey noted, with only organisations 8 per cent of organisations integrating AI across all divisions.
There also remains a gap in adoption, with small and medium sized enterprises less likely to use the technology compared to larger enterprises. The 30 per cent gap was attributed to cost concerns and a lack of expertise, while 62 per cent of SMEs said a lack of AI skills was a barrier to its adoption. Only 10 per cent of smaller businesses said they had an AI strategy, compared to 50 per cent of multinationals.
“Without a structured AI strategy, SMEs risk falling behind in several key areas. Missed efficiency gains can hinder automation, customer engagement, and streamlined operations. Loss of competitiveness is another risk, as businesses that fail to integrate AI may struggle against more agile competitors,” said Ms Doyle. “To stay competitive, SMEs need clear policies, structured training, and access to enterprise-grade AI tools to harness AI effectively.”
There were also differences in the public sector. In Northern Ireland, 24 per cent of public sector organisations use AI in data-driven decision-making; that figure is only 13 per cent in Ireland. However, the survey noted that public sector AI usage in Northern Ireland is “relatively isolated and experimental”, and regulations are perceived as a major barrier to more widespread adoption of the technology in Northern Ireland.
More concerning were governance gaps, with 61 per cent of managers saying that staff used AI tools, even when they had been prohibited from doing so.
Recruitment was also a challenge, with around half of companies finding it difficult to hire AI-trained staff.
“Ireland is at a pivotal moment in its AI adoption journey, and this year’s research underscores both the progress made and the work still to be done,” said Dr. Ashish Kumar Jha, Associate Professor of Business Analytics at Trinity Business School.
“For Ireland to fully realise AI’s economic potential, we must address barriers faced by SMEs and the public sector, focusing on governance, skills development, and strategic integration. The organisations that thrive will be those that integrate AI as a core strategic asset, investing in talent, governance, and innovation.”
