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AI expected to add €250b to Ireland's economy by 2035 - report

AI expected to add €250b to Ireland's economy by 2035 - report

  • 8 hours ago
  • rte.ie
  • Keywords: AI

A new report predicts AI could add €250 billion to Ireland's economy by 2035. AI adoption has surged to 91%, with many employees using tools未经组织批准，and SMEs lagging behind multinationals in implementation. Challenges include regulatory barriers and a lack of formal strategies, but experts believe Ireland can lead in AI with collaboration.

Microsoft Reports

Estimated market influence

Microsoft

Microsoft

Positive
Analyst rating: Strong buy

Contributed to the report

Trinity College Dublin

Positive
Analyst rating: N/A

Contributed to the report

Context

Business Insights and Market Implications of AI Adoption in Ireland

Key Findings from the Report

  • Economic Impact:

    • AI adoption is projected to add €250 billion to Ireland's GDP by 2035.
    • It could increase Ireland’s Gross National Income (GNI) by at least €130 billion by 2035.

  • AI Adoption Rates:

    • AI adoption in Ireland surged to 91% in 2024, nearly doubling from 49% in the previous year.
    • This growth positions Ireland ahead of many EU counterparts.

  • Shadow AI Culture:

    • 80% of organizations report employees using free AI tools without enterprise security controls.
    • 61% of managers acknowledge AI usage in workplaces where it is officially restricted.

  • SME vs. Multinational Gap:

    • SMEs adopt AI at a 30% lower rate compared to multinationals.
    • Only 10% of SMEs have an AI strategy, versus 50% of multinationals.

  • Regulatory Barriers:

    • Regulatory challenges are more pronounced in Northern Ireland (80%) compared to Ireland (50%).

  • Public Sector Lag:

    • Just 15% of public sector organizations use AI in most decision-making roles.

Market and Industry Implications

  • Competitive Dynamics:

    • The rapid adoption of AI by Irish businesses highlights the growing importance of technology-driven innovation.
    • SMEs face a significant gap in AI readiness, creating opportunities for tech providers to offer tailored solutions.

  • Strategic Considerations:

    • Organizations must prioritize formal AI strategies and governance frameworks to ensure secure and responsible implementation.
    • Collaboration between government, academia, and industry is critical to maximizing AI’s economic potential.

  • Long-Term Effects:

    • The projected €250 billion GDP boost underscores AI’s transformative potential for Ireland’s economy.
    • Strategic focus on closing the SME-multinational gap could drive inclusive growth across sectors.

  • Regulatory and Policy Impact:

    • Addressing regulatory barriers in Northern Ireland and fostering a supportive policy environment will be key to unlocking AI’s full economic benefits.

Conclusion

Ireland is at a pivotal moment in its AI adoption journey, with significant opportunities for economic growth and global competitiveness. However, challenges such as governance gaps, SME readiness, and regional disparities must be addressed to fully realize AI’s potential.