Ireland’s continued success as a destination for foreign direct investment (FDI) will be determined by how we embrace and accelerate AI, digital transformation and the emerging technologies reshaping industry worldwide.
Ireland is already well positioned to be a global leader in these industries. As the home to the European headquarters of many of the world’s most innovative companies, the Republic already acts as an EU regulatory hub for the digital sector. Further, it has the highest proportion of Stem graduates within the EU among 20-to-29-year-olds, reflecting a sustained national commitment to education, skills, and workforce development.
This pipeline of skilled talent, combined with multinational experience and access to EU and global markets gives Ireland a competitive edge in both attracting and sustaining high-value investment in key sectors including AI, digital transformation and emerging technologies.
This potential is already reflected in the investment priorities of US MNCs in Ireland.
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In AmCham’s FDI Insights survey, 40 per cent of members identified AI and emerging technologies as the greatest opportunity for their organisation in Ireland over the next five years. Additionally, 65 per cent of respondents indicated that they will invest in AI, automation and data analytics over the next 12 months, while 60 per cent will invest in digital transformation and 55 per cent in employee upskilling. Crucially, more than 80 per cent of respondents believe the AI transformation will result in increased or maintained investment by their organisation in Ireland over the next five years.
But the opportunities that AI and emerging technologies present for Ireland go beyond financial investment. These technologies will provide highly skilled jobs in the Irish economy; however, we must ensure that we have the necessary talent base to support them.
Already, skills in digital and data, engineering, and in AI and machine learning represent the top three skills gaps being experienced by companies in Ireland. Of the 69 per cent of respondents to an AmCham survey that said they are experiencing difficulty in filling vacancies in Ireland, 46 per cent said that this challenge was due to a shortage of specialist skills.
The provision in Budget 2026 for the development and operation of 11 technological university facilities, supporting Stem and related disciplines, will be important in addressing these skills gaps. Additionally, the increase in the research and development tax credit from 30 per cent to 35 per cent, which as a key ask of AmCham, will further bolster the State’s innovation ecosystem. However, further measures to enhance investment in Ireland’s higher-education institutional infrastructure and to expand the range of apprenticeships available in areas including digital and data and machine learning will be beneficial in ensuring Ireland’s talent pool is best placed to grasp the opportunities of the future.
While it is important to look to the future and the opportunities that exist for FDI in Ireland, it is equally important that we acknowledge the successes already achieved as part of the US-Ireland business relationship.
There are now more than 970 US companies with a presence in Ireland, employing more than 245,000 people. That is a 16 per cent increase in employment by US multinationals compared to 2024. Meanwhile, Ireland has grown to be the fifth-largest investor in the US, employing more than 202,000 people across all 50 states.
However, amid the geopolitical landscape and global challenges around supply chains and trade, it is important that we also consistently work to boost Ireland’s competitiveness and address challenges around the availability of housing, transport infrastructure and energy costs and supply. This will be essential to ensuring Ireland’s continued attractiveness for FDI.
As we look to 2026 and the Republic’s presidency of the Council of the European Union, we particularly welcome plans to convene an international AI summit as a flagship moment next year, demonstrating Ireland’s commitment to digital and AI leadership. The EU presidency also provides a significant opportunity to further strengthen the transatlantic partnership that has long supported our economic success.
As the only common-law, English-speaking EU member state, the Republic is uniquely positioned as a bridge between the US and Europe, facilitating transatlantic engagement between the business community and policymakers.
This presents Ireland with a significant opportunity to shape conversations on competitiveness, sustainability, and innovation, and to highlight Ireland’s unique perspective within the EU-US transatlantic partnership.
