Irish SMEs Struggle to Keep Pace with AI Adoption Despite Government Push
Only 10% of Irish SMEs have an AI strategy compared to 50% of multinationals. Key barriers include lack of expertise, high costs, and uncertainty about implementation.
Irish SMEs Lag Behind in AI Adoption
New research from Trinity Business School and Microsoft Ireland highlights a significant gap in artificial intelligence (AI) adoption between Irish SMEs and multinational companies. Only 10% of Irish SMEs have an AI strategy, whereas 50% of multinationals do. The report, based on input from 300 senior leaders across Ireland, reveals that 40% of SMEs actively use AI in some capacity, but most struggle with expertise, costs, and implementation uncertainty.
Smaller businesses, particularly those with revenues under €10 million, often adopt AI through broader software packages rather than standalone or fully integrated AI solutions. Organizations pursuing an ‘AI-first’ approach — embedding AI across all departments — make up just 8% of the sample, a slight rise from 1.81% in 2024.
Barriers to AI Adoption for SMEs
- Lack of AI expertise: 62% of SMEs cite this as the main obstacle.
- Cost concerns: High expenses deter investment in AI technologies.
- Implementation uncertainty: Many SMEs are unsure how to effectively integrate AI into their operations.
The Central Statistics Office reports that AI usage among Irish enterprises increased from 8% in 2023 to 14.9% in 2024. Most medium and large enterprises use AI to automate workflows or assist decision-making, while small enterprises mainly use AI for natural language generation.
Government Initiatives to Support AI Uptake
The Irish government has set a target for 75% of enterprises to use cloud, AI, and data analytics by 2030. Niamh Smyth, Minister for Trade Promotion, AI, and Digital Transformation, emphasizes that AI presents an opportunity to close the productivity gap in indigenous SMEs. She highlights generative AI and AI assistants as tools to enhance efficiency, especially in microenterprises and small businesses.
To support businesses, the government launched the Grow Digital Portal. This platform offers case studies of non-tech businesses that have successfully adopted digital solutions, providing relatable examples for SME owners. The Local Enterprise Offices (LEOs) have widened eligibility for the Grow Digital Voucher, doubling the grant to €5,000 or 50% of expenditure and extending it to all businesses with up to 50 employees, regardless of export status.
LEOs also introduced the Digital for Business consultancy scheme, offering expert advice to companies on technology adoption. Further digital upskilling programs will expand under the refreshed National AI Strategy, including initiatives through Skillnet Ireland and Springboard+.
What This Means for Government and Operations Professionals
- Supporting SMEs in overcoming AI adoption barriers is crucial for national economic growth.
- Focus on skills development, governance, and clear AI integration strategies will help smaller organizations scale AI use effectively.
- Encouraging AI adoption across public and private sectors will contribute significantly to Ireland’s GDP — with potential to add €250 billion by 2035, and possibly €60 billion more if policies and investment align.
Businesses that treat AI as a strategic asset and invest in talent and innovation will be best positioned to thrive. For government professionals, driving initiatives that provide expertise access, financial support, and digital skills training will be key to bridging the current AI gap.
Further Learning and Resources
To support AI skills development within your teams or organisations, consider exploring practical AI training courses available at Complete AI Training. These courses cover a range of AI applications relevant to operations and government roles.
