An in-depth report into the future impact of AI in Ireland has suggested the adoption of the new technology could add €250bn to the Irish economy within 10 years.

The rapid uptake of AI was highlighted in the study which found 91% of organisations now use AI in some form- nearly doubling in the last year.

The revelations were included in the AI Economy in Ireland 2025 report produced by Trinity College Dublin in collaboration with Microsoft Ireland.

Its aim is to provide a comprehensive view of the current rate of AI adoption. 

Some of the headline conclusions from the report include the claim Ireland’s GNI is expected to increase by €130bn by 2035 thanks to the adoption of AI.

The authors of the report also suggest GNI could rise to €160,000 per person with optimal AI adoption and policies - €30,000 higher than a non-AI baseline scenario.

“Increasingly recognised as a general-purpose technology, similar to electricity and the internet, AI is becoming a fundamental driver of economic growth, and this new report highlights its transformational impact on Ireland,” said Catherine Doyle, General Manager, Microsoft Ireland.

“Ireland is uniquely positioned to capitalise on AI’s capabilities, thanks to its thriving tech ecosystem, skilled workforce, and forward-thinking government initiatives.

"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 as AI adoption continues to surge.” 

But it warns of a 'shadow AI culture' as 61% of managers report employees using AI tools even when prohibited, exposing governance gaps. 

SMEs are also lagging behind multinationals in adopting AI with only 30% using it at present. Limited expertise and cost concerns were given as the primary reasons for the low take up.

The report also noted just 10% of SMEs have an AI strategy, compared to 50% of multinationals while 62% of SMEs cite a lack of AI skills as the top barrier to adoption. 

The all-island report found regulatory barriers to AI adoption more pronounced in Northern Ireland, with 80% of organisations citing challenges compared to 50% in Ireland.

Multinationals also report greater ease in training staff for AI roles, with 70% stating their teams are skilled and easily trained in AI. This contrasts with just 55% of public sector organisations.

"Ireland is at a pivotal moment in its AI adoption journey, and this year’s research underscores both the progress made and the work still to be done," said Dr. Ashish Kumar Jha, Associate Professor of Business Analytics at Trinity Business School and co-author of the report. 

“AI adoption in Ireland has nearly doubled in the past year, but the challenge now is moving beyond experimentation to full-scale, strategic implementation.

"The opportunity is huge – AI has the potential to add at least €250 bn to Ireland’s economy (GDP) by 2035.

"Larger firms are leading the charge, while SMEs - which make up 99.8% of enterprises in Ireland - and the public sector risk falling behind due to barriers in expertise, investment, and structured deployment.

"For Ireland to fully realise AI’s economic potential, we must address barriers faced by SMEs and the public sector, focusing on governance, skills development, and strategic integration.

"The organisations that thrive will be those that integrate AI as a core strategic asset, investing in talent, governance, and innovation.”