While the hype surrounding GenAI has dissipated, companies are starting to make serious investments in the technology to address a variety of very real business issues.
“The purposes for which enterprises use AI software and systems differ depending on their size and economic sector,” says Erik O’Donovan, head of digital policy with business group Ibec.
“In Ireland, the use of AI for automating workflows or assisting in decision making is the most common use among both medium and large enterprises, while the use of AI for natural language generation is most prevalent among small enterprises,” he explains.
“Recent research by TCD and Microsoft has found that 30 per cent of multinational organisations use AI in most or all data-driven decisions, versus 15 per cent of public sector organisations in Ireland.”
Last year professional services firm KPMG began taking a quarterly AI pulse survey of top-tier executives in large US organisations. Its Q1 survey this year found leaders plan to invest nearly $114 million in GenAI over the next year, up from $89 million in the last survey.
Organisations are rapidly accelerating from experimentation to piloting AI agents – the latter is up from 37 per cent to 65 per cent since last quarter. However, the percentage of organisations deploying agents remains flat at 11 per cent, it found.
More than four in five leaders (82 per cent) expect risk management to be the biggest challenge to their GenAI strategies for the remainder of 2025, followed by quality of organisational data (64 per cent) and personal trust in the technology (35 per cent).
Productivity tool usage on a daily basis was up to 58 per cent, from 22 per cent. Knowledge assistant usage on a weekly basis was up to 61 per cent, from 48 per cent, as is GenAI usage embedded into existing workflows, up from 24 per cent to 35 per cent, it found.
Just under one third (32 per cent) of business leaders surveyed believed that trust in the accuracy and fairness of AI outputs will be the greatest society-wide challenge with AI between now and 2030.
But it isn’t only in the private sector that the pace of AI adoption is accelerating. In May the Government launched guidelines for the responsible use of AI in the public sector.
The aim is to empower public servants to use AI in the delivery of services, while also enhancing public trust in how Government uses AI.
A range of resources designed to support the adoption of AI has been developed to that end, including clear information on Government’s principles for responsible AI, a decision framework for evaluating the potential use of AI, a responsible AI canvas tool to be used at planning stage, and an AI life-cycle guidance tool.
Other government supports available to public service organisations include learning and development materials as well as training courses for public servants.
AI is increasingly being considered across public services in the State. For example, St Vincent’s University Hospital in Dublin is exploring the potential for AI to assist with performing heart ultrasound scans to help reduce waiting times for patients. The Revenue Commissioners is already using large language models to route taxpayer queries more efficiently, ensuring faster and more accurate responses. The Department of Agriculture, Food and the Marine is developing an AI-supported solution to detect errors in grant applications and reduce processing times for applications.
In many ways Ireland is well placed to leverage the AI opportunity, given the strength of the tech sector here. According to an American Chamber of Commerce report earlier this year, one of the reasons why US multinationals invest in the Republic is because it has the highest level of Stem graduates per capita in the EU among 20–29-year-olds.
Investing here also gives them access to clusters of excellence, they say, with nine of the top 10 US technology and software companies and the top three enterprise software companies already located in the State, all of which positions us well to participate in the rise of AI.
But the same report also sounded a word of caution, with two thirds of AmCham members recording difficulties filling vacancies, key areas such as digital, data and cyber showing the biggest skills gaps.
It’s why the need for Ireland to develop its AI skills base as it competes for investment from companies that are increasingly reliant on the technology is now “a strategic imperative”, says O’Donovan.
“Research by Eurobarometer and Skillnet Ireland indicates skill shortages can hinder AI adoption by businesses. Ireland must pursue a strategic approach to addressing AI and digital skills that mobilises and co-ordinates the whole education and training system,” he says.
That includes continuing to gather intelligence on technological trends, on the State’s evolving labour market, and on consequent skills needs to inform supply.
“We must respond to existing skill needs through upskilling and reskilling, build a strong talent pipeline with multiple and varied opportunities to develop AI and digital skills, and support digital inclusion through lifelong learning and AI/digital literacy so that a wide diversity of talent and people can participate in an evolving labour market,” says O’Donovan.
“We must provide AI talent with opportunities to apply their experience in industry domains. Government must resource this necessary strategic investment in our future by engaging business and leveraging the National Training Fund.”
