Ireland has the highest rate of business AI adoption in Europe, with 65% of companies now using artificial intelligence, up from 45% last year, according to AWS’s latest ‘Unlocking Ireland’s AI Potential’ report.
Ireland’s adoption rate compares with a European average of 54% and 64% in the UK.
More than 160 Irish businesses have adopted AI for the first time each day over the past year, according to the report.
The headline adoption figure masks a significant gap in how businesses are using the technology.
Most companies are applying AI to basic tasks such as summarising documents and answering simple queries, while just 20% of AI-adopting businesses have reached an advanced stage where AI forms part of core processes and decision-making.
That gap has significant economic implications. Businesses using AI at an advanced level report average efficiency gains of 66%, compared with 38% among basic users.
The report estimates that moving more businesses towards advanced adoption could generate an additional €10.1 billion in gross value added for the Irish economy.
AI is already delivering benefits for many companies. Some 66% of AI adopters reported productivity gains, while 70% expected the technology to accelerate business growth. More than three-quarters said AI had helped them innovate faster.
Skills gap emerges as major challenge
A shortage of digital and AI skills is increasingly becoming a constraint on adoption. Almost half of businesses, 47%, identified skills shortages as a challenge, up from 43% last year.
Only 18% of businesses said they currently had a strong AI skillset, despite 85% expecting AI skills to be important in their industry over the next five years.
The problem is also affecting recruitment. Businesses reported that it now takes seven months to fill a digital role, compared with five-and-a-half months a year ago, while 42% said they were having difficulty attracting local talent.
Dublin and its surrounding counties have an adoption rate of 74%, compared with 58% across the rest of Ireland. However, the South-West, West and Mid-West are recording faster year-on-year growth than Dublin.
Niamh Gallagher, country lead for AWS in Ireland, said Ireland’s lead could not be taken for granted.
“Ireland now has the highest AI adoption rate in Europe, but other countries are moving fast, and adoption alone won’t sustain our lead,” she said.
The challenge for Irish businesses now is to move beyond simply adopting AI and use it to fundamentally change how products, services and internal processes are delivered.
Patryk Goron
Ltd
