Ireland leads AI adoption but SMEs lag on skills and readiness, study finds
Ireland ranks among the world's leading economies for AI adoption, with 92% of organisations now using or planning to use the technology. Yet a sharp divide is emerging between large firms and small-to-medium enterprises, threatening to constrain national productivity growth.
New research from Trinity College Dublin and Microsoft Ireland reveals that while AI adoption is near-universal, fewer than half of organisations have a formal AI policy in place. That gap matters: companies with formal policies are 10 times more likely to report major productivity gains.
Time savings favour large firms
AI is freeing up measurable time across the economy. A typical mid-sized Irish organisation saves up to 1,000 hours per month through reduced meetings, email, and administrative work. Large multinationals operating here reach 5,000 hours monthly.
But the gains are unevenly distributed. Large organisations are twice as likely as SMEs to save two or more hours per employee per week (54% versus 25%). The gap widens further at higher savings levels.
SMEs that do invest in AI, however, see stronger returns. Eighteen percent report significant productivity gains compared to 8% of large organisations-suggesting that where smaller firms commit resources, the payoff is real.
The skills and confidence divide
SMEs are twice as likely as large firms to have no formal AI training in place (15% versus 6%). This readiness gap is already translating into uneven business outcomes.
A separate confidence issue cuts across gender lines. Seventy percent of women hesitate to use AI at work, compared to 52% of men-an 18-point gap mirrored in lower self-reported AI literacy among women in leadership roles.
The stakes are substantial. SMEs account for more than two-thirds of employment in Ireland and contribute over 40% of gross value added. Without closing the maturity gap, productivity gains will concentrate among large employers.
Leaders report real relief from workload
Beyond efficiency metrics, AI is changing how leaders experience work. Seventy percent report reduced overall workload pressure. One in three say AI makes it easier to switch off from work, and 26% report less evening and weekend work.
These gains matter for retention and wellbeing, but they represent only the first phase of AI's economic potential. The bigger returns come from using freed-up time to drive innovation and create new products-not just doing today's work faster.
The governance challenge ahead
Ninety-two percent of organisations use or plan to use AI, but only 44% have formal policies. That readiness gap becomes critical as new EU AI Act provisions take effect in August 2026.
Organisations without formal governance structures risk compliance issues while missing the productivity multiplier that comes with structured deployment. The research shows that formal policies don't slow adoption-they accelerate results.
The survey covered 250 senior leaders across Irish organisations between December 2025 and January 2026. Time savings estimates are based on self-reported weekly savings of up to two hours per employee.
For management and development professionals, the findings point to two priorities: closing the skills gap in SMEs and building confidence among women in leadership to use AI effectively. Both directly affect how quickly organisations move from early adoption to scaled, value-driven deployment.
Learn more about AI productivity strategies and AI for management roles.
Your membership also unlocks:
