This report, produced by Trinity College Dublin’s Centre for Digital Business and Analytics in collaboration with Microsoft Ireland, explores how Artificial Intelligence (AI) is shaping Ireland’s economy and organisations in 2025. It provides both a snapshot of current adoption and an economic forecast of AI’s long-term impact.
Key Findings
1. Rapid AI Adoption
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In 2024, half of Irish organisations did not use AI; by 2025 this figure dropped to just 9%.
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Larger firms and multinationals are leading adoption, while SMEs and the public sector lag behind.
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Most businesses use AI through third-party software, though “AI-first” organisations (where AI is central to operations) are slowly increasing.
2. Shadow AI Culture
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Employees often use free or public AI tools even when official policies discourage them.
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80% of managers acknowledge this reality, suggesting that management of AI use is more effective than outright bans.
3. Policy and Preparedness
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About half of organisations lack clear AI policies. Larger and multinational firms are better prepared than SMEs and public bodies.
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Public sector adoption remains weaker, particularly in decision-making processes.
4. Productivity and Perceptions
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75% of organisations believe AI is useful, up from 65% in 2024.
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However, 50% report little to no productivity gains so far—AI is mostly delivering incremental improvements rather than major transformation.
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AI is increasingly linked to sustainability goals, with 71% of firms expecting it to support environmental strategies.
5. Training and Workforce
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Talent shortages remain, but recruitment of AI-trained staff is slowly improving.
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Multinationals report stronger confidence in employee adaptability than smaller Irish firms.
6. Regulation and Ethics
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Over half of organisations see regulation as a barrier, particularly SMEs.
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Only half of managers believe their organisation takes a responsible approach to AI ethics and security, signalling risks around trust and governance.
Economic Impact of AI
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AI could add at least €250 billion to the Irish economy over the next decade.
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With supportive policies, this figure could rise by another €60 billion by 2035.
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Per capita GDP could be 42% higher with widespread AI adoption and strong policy support compared to a no-AI scenario.
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Ireland’s GNI per capita could increase by up to €30,000 per person by 2035 with broad AI integration.
Conclusion
Ireland has made rapid progress in AI adoption, but gaps remain—especially for SMEs and the public sector. With the right policies, investment, and training, AI could transform productivity, sustainability, and economic growth. However, without clear strategies and ethical safeguards, adoption risks being uneven and limited in impact.