With a booming tech ecosystem, world-class universities and many of the world’s leading technology companies already operating here, Ireland has the potential to be a world leader in research and development (R&D) in artificial intelligence (AI). Yet while the foundations are solid, experts agree that real leadership in this critical field will depend on strategic action, now. We have a strong base, but there is no room for complacency in this fast-moving field.
“Ireland is already a natural home for research and development around artificial intelligence,” says Dr Patrick Mannion, lecturer in computer science at the University of Galway and programme director of its postgraduate certificate in AI for managers. He points to the presence of data centres, engineering labs and multinationals with strong R&D operations, noting that “there is a lot of AI-related investment here already”.
According to Ibec’s head of digital economy policy, Erik O’Donovan, the Irish ICT sector made up a striking 35 per cent of the Republic’s gross value added in 2022, employing around 90,000 people. When digitally intensive sectors are included – those that rely heavily on digital technologies – the jobs figure triples, he estimates.
But for the State to move from a fast follower to a global leader, public policy needs to create a supportive environment. “Despite our strengths, we cannot be complacent,” warns O’Donovan. “Industry investment in innovation makes up most of the total expenditure on research and innovation (R&I), while public investment lags.” In 2021, ICT accounted for 43 per cent of total business R&D expenditure and 45 per cent of total R&D personnel.
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This imbalance, he argues, must be addressed. “Supports for research and innovation are underutilised by industry due to the administrative burden and challenges in navigating the system,” says O’Donovan.
“Ireland must enhance regulatory capacity, co-ordination and simplicity to support certainty and innovation.”
O’Donovan outlines several key steps to strengthen the State’s AI capacity: boost public investment in strategic digital R&I; make R&D tax credits more accessible to the private sector; launch a new programme for research in third level institutions; and channel National Training Fund resources into research talent development.
Crucially, he stresses the need for a “strategic approach to addressing gaps in AI skills that mobilises and co-ordinates the whole education and training system”.
Mannion echoes this view. “We need to emphasise upskilling and reskilling the workforce for the types of new AI-related roles that will emerge in the coming years,” he says. While Ireland has one of the highest third-level education completion rates in the world, the speed of AI development means ongoing learning must be central to the national approach.
Although the Republic has an enviable track record in technology, to lead in AI it needs to focus its efforts. Rory Timlin, data and AI lead at KPMG Ireland says, “it is important for Ireland to pick the right fields and sectors in AI in which we will play strongly and differentiate ourselves.” He sees the greatest opportunities in sectors where Ireland already has global standing: pharmaceuticals, medtech, agri-food, and tech operations.
“Many of the factors that have helped Ireland’s position in the modern cloud-based technology sector hold for growing AI R&D,” says Timlin. The State’s emerging role as a centre for digital regulation in the EU, combined with its position between the US and European markets, gives it “a natural advantage” in navigating the future of AI governance.
Talent remains a defining factor in AI progress – but also a potential stumbling block. AI Ireland founder Mark Kelly warns that competition for top researchers and engineers is fierce, with leading experts “always open to the next move” to stay at the cutting edge.
Developing a healthy AI ecosystem also requires supporting emerging talent – not just elite researchers.
“One of the challenges is probably at the junior level,” Kelly says. “Getting roles as entry-level data scientists is very, very difficult, because people want experience. It’s a kind of catch 22: how do I get experience if I don’t already have it?” His advice to budding data scientists: personal projects.
More companies like Intercom, which is building out a strong generative AI team in Ireland, are needed to grow the AI ecosystem. “If you have more of those companies here, then the ecosystem gets stronger and stronger,” he says.
However, without deliberate effort to support the formation of clusters, Ireland risks losing out. “It’s really important that these AI roles are based here,” Kelly stresses. “Otherwise, you’ll see talent migrating to countries like Portugal, Spain or Finland, where clusters are forming.”
Beyond talent, data infrastructure is another area where Kelly sees a need for urgent action. “We need a better, more systematic approach to data management in Ireland,” he says. Without it, Ireland’s future job market and innovation capacity may suffer. AI, he adds, could even play a role in optimising Ireland’s energy grid to support this.
The complexities of developing a national AI strategy are considerable, and Kelly is clear that “there’s no quick or easy solution.” But there is hope. “There are a lot of really positive things to point to – strong talent, national strategy, global players already based here. That gives me heart.”
With AI now reshaping industries across the globe, the State is well-positioned – and the advice from the experts consistent: build on our strengths, simplify and scale support for innovation, invest in skills, foster clusters of excellence, and target the areas where we can lead globally.
