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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

  • 5 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% among organizations, but challenges remain, including a "shadow AI culture" where employees use tools without oversight. Collaboration across sectors is seen as key for future growth.

Microsoft Reports

Estimated market influence

Microsoft

Microsoft

Positive
Analyst rating: Strong buy

Contributed to the report on AI adoption in Ireland.

Trinity College Dublin

Positive
Analyst rating: N/A

Collaborated with Microsoft on the AI report.

Context

Analysis of AI Adoption Impact on Ireland's Economy (2025 Report)

Economic Impact

  • GDP Contribution: AI adoption is projected to add €250 billion to Ireland's GDP by 2035.
  • GNI Growth: The report estimates a €130 billion increase in Ireland’s Gross National Income (GNI) by 2035 due to AI.

Market Trends

  • AI Adoption Surge: AI adoption in Ireland has surged to 91% in 2025, nearly doubling from 49% in 2024.
  • Shadow AI Culture: 80% of organizations report employees using free AI tools without enterprise security controls.
  • SME vs Multinational Gap: SMEs adopt AI at a 30% lower rate than multinationals, with only 10% of SMEs having an AI strategy compared to 50% of multinationals.

Competitive Dynamics

  • Regulatory Barriers: Northern Ireland faces more pronounced regulatory barriers to AI adoption (80%) compared to Ireland (50%).
  • Public Sector Lag: Only 15% of public sector organizations use AI in most decision-making roles.

Strategic Challenges and Opportunities

  • Lack of Formal Strategy: A key issue is the absence of formal strategy and governance frameworks for secure and responsible AI implementation.
  • Government Support: 63% of organizations feel the government is supportive of AI adoption, with collaboration across sectors seen as critical for leadership in AI.

Long-Term Effects

  • Global Competitiveness: Ireland is positioned to play a leading role in AI-driven economic growth and global competitiveness if strategic implementation is prioritized.
  • Sustainability Focus: The report emphasizes the potential of AI to drive sustainable economic growth across sectors.

Key Takeaways:
Ireland's AI adoption is surging, with significant economic benefits projected by 2035. However, challenges such as regulatory barriers, lack of formal strategies, and gaps in SME adoption need to be addressed to fully realize AI's potential. Collaboration between government, academia, and industry will be crucial for sustained growth and global competitiveness.