A new report by Microsoft and Trinity College Dublin forecasts that artificial intelligence (AI) adoption could contribute €250 billion to Ireland’s economy over the next decade. The AI Economy in Ireland 2025 report projects that by 2035, AI could increase Ireland’s Gross National Income (GNI) by at least €130 billion, marking a transformative shift in the country’s economic landscape.
The study highlights a rapid surge in AI adoption, with 91% of Irish businesses now leveraging AI—nearly double the 49% recorded in 2024. This rapid growth has positioned Ireland ahead of many EU counterparts, reversing its previous status as a laggard in AI integration.
Despite this progress, the report points to a growing “shadow AI culture,” where employees independently use AI tools without organizational oversight. Findings reveal that 80% of companies report staff utilizing free AI applications lacking enterprise security controls, while 61% of managers acknowledge AI usage in workplaces where its deployment remains officially restricted.
AI adoption rates also vary significantly between business types. Small and medium-sized enterprises (SMEs) lag behind multinational corporations, with only 10% of SMEs having a defined AI strategy compared to 50% of multinationals. Regulatory challenges further complicate AI integration, particularly in Northern Ireland, where 80% of organizations cite regulatory barriers compared to 50% in the Republic of Ireland.
In the public sector, AI usage remains limited, with just 15% of organizations deploying AI in key decision-making processes. The report attributes this to a lack of formal governance frameworks, resulting in gaps in secure and responsible AI implementation.
Nevertheless, optimism surrounding AI adoption remains strong, with 63% of organizations expressing confidence in government support for AI integration. Catherine Doyle, General Manager of Microsoft Ireland, emphasized the potential for Ireland to lead in AI-driven economic growth.
“With a collaborative approach across government, academia, and industry, Ireland can play a leading role in the era of AI, driving sustainable economic growth across sectors and setting the stage for global competitiveness,” she stated.
Dr. Ashish Kumar Jha, Associate Professor of Business Analytics at Trinity Business School and co-author of the report, underscored the significance of Ireland’s AI adoption momentum.
“This year’s research highlights both the strides made and the challenges ahead. While AI adoption has nearly doubled, the next step is moving beyond experimentation to full-scale, strategic implementation,” he said.
The research was conducted by the Trinity Centre for Digital Business and Analytics (CDBA) at Trinity Business School, in collaboration with market research firm 3GEM. The findings are based on a survey of 300 senior leaders across various industries, offering a comprehensive overview of AI adoption trends in Ireland.
