It is a great pleasure to address the House on behalf of the Minister of State, Deputy Smyth, who will join us momentarily.
The Department of Enterprise, Tourism and Employment asked me to begin by addressing the serious concerns that all of us have in relation to the abuse of Al capabilities, more specifically regarding Grok’s ability to "nudify" individuals without their consent. To be absolutely clear, the sharing of non-consensual intimate images is illegal and the generation of child sexual abuse material is illegal. Coimisiún na Meán, as Ireland's new online safety and media regulator, is at the heart of Ireland’s online safety framework, including the regulation of social media. Under the online safety framework, there is an obligation on platforms to act on reports of illegal content, so the public can report illegal content to the online platform, which must react on that report, and to Coimisiún na Meán. A failure by the platform to protect against illegal or harmful content being shown can lead to significant financial sanctions and, under the Online Safety and Media Regulation Act, continued non-compliance can lead to criminal sanctions for senior management. Under the Digital Services Act, the European Commission has powers with respect to the proliferation of illegal content online on platforms, including X, and the protection of fundamental rights, including protection for minors. Coimisiún na Meán is engaging with the European Commission in this context in relation to Grok. The Attorney General has also been asked to advise on other mechanisms within the legal framework to protect people from digital harms like these.
To move on, the Department would like to share its key priorities and long-term vision for Ireland’s approach to artificial intelligence. Our country has long been recognised as a dynamic and forward-looking digital hub, but maintaining this position demands continuous effort and ambition. To secure the country’s place at the forefront of technological change, it is essential to embrace the transformative potential of artificial intelligence across the economy and wider society. Last week’s announcement of the €4.7 billion sectoral capital plan marks a decisive moment in our ambition to lead in innovation and advanced technologies. This is the largest ever investment in our enterprise and innovation ecosystem. It is a long-term commitment to jobs, competitiveness and building the infrastructure that the world’s most advanced enterprises demand. Crucially, more than €1.3 billion of this plan is dedicated to enterprise, innovation and commercialisation. That means sustained investment in disruptive technologies, technology centres, research partnerships and major European projects.
Through these investments, we are clearly signalling our ambition to position Ireland as a global leader in advanced manufacturing, Al and space technologies. As the Department pursues this ambition, we must also acknowledge that rapid technological progress brings real societal challenges, particularly around safety, privacy and the protection of fundamental rights. Building public trust in Al is at the heart of Ireland’s Al strategy. Our Government has prioritised putting in place the appropriate governance mechanisms and guardrails to ensure Al is used responsibly in Ireland. The opportunity Al offers is immense, but so too is the Department’s responsibility to get this right and to use Al for our greater good in business, the economy and wider society. That is why the Department has been actively working to build public understanding of Al through trusted independent voices, including the enterprise digital advisory forum and the Al advisory council; implementing the EU Al Act; rolling out standards and certification for Al; establishing a new Al office of Ireland; and making Ireland's voice heard in international Al governance forums.
The Department of Enterprise, Tourism and Employment will continue to couple bold innovation with strong, trusted governance. Citizens and businesses need confidence that Al systems are safe, fair, trustworthy and accountable. The Grok Al scandal and the misuse of Al to generate appalling deepfake images is a prime example of why governance is so important. This leads me to one of my, and the Government's, key ambitions in the broader Al agenda, namely, cementing Ireland’s position as a centre of regulatory excellence and as a strong voice in Europe advocating for well-designed digital regulation that is fit for purpose to protect individuals' safety and fundamental rights while enabling innovation. The Department of Enterprise, Tourism and Employment is firmly committed to implementing the EU Al Act, which is a forward-looking framework that balances innovation with proportionate safeguards. The Department is making very good progress. It has adopted a distributed model implementation allowing businesses to work with regulators who understand their sectors, making compliance more practical and effective. This past Tuesday, the Government approved priority drafting of legislation to give full effect in Ireland to the EU Al Act.
Looking to the months ahead, the Al office of Ireland is set to be established by August 2026, supported by €1.5 million in start-up funding. Work is well under way on the general scheme of the regulation of artificial intelligence, which will create the office as an independent statutory body. The office will act as Ireland’s central authority for implementing the EU Al Act. It will also promote research and adoption. All businesses should begin assessing their Al use and compliance. The Department has already put resources in place to help businesses do that, through CeADAR, Ireland’s national centre for applied Al, the Department’s website and the EU Al Act service desk’s compliance checker. The Department also needs a place where businesses can safely test, learn and innovate. An important function of the office will be to ensure the establishment of a national Al regulatory sandbox. This sandbox will support Irish businesses, particularly SMEs and start-ups, to navigate the Al Act requirements while driving innovation.
Together, these measures strengthen our national framework for trustworthy Al. They are also aligned with a wider European effort to ensure regulation is effective and proportionate. In October, the Minister of State, Deputy Niamh Smyth, sent a letter to her colleague, Henna Virkkunen, European Commission executive vice president for technological sovereignty, security and democracy. This letter called for an ambitious digital simplification package that supports the EU’s strategic positioning as the location of choice for trustworthy digital innovation. The European Commission’s digital simplification omnibus package, published last November, is an important development because it includes proposals to simplify rules on data, cybersecurity and artificial intelligence. These proposals are a very welcome first step to improving competitiveness at an EU level.
The Minister of State, Deputy Smyth, has been vocal at meetings with ministerial colleagues across the EU that Ireland believes the digital simplification package should take a dynamic, ambitious and risk-based approach, focused on removing regulatory overlaps, reducing administrative burdens and yet supporting compliance. However, the Department wants to be clear that simplification does not mean deregulation. The proposed simplification measures have been arrived at through significant stakeholder consultation by the Commission.
They maintain the same high standards for safety and fundamental rights protection while ensuring more effective implementation of the Al Act. The Department is confident we can create a future where innovation and integrity go hand in hand with a more simplified and straightforward approach to deregulation.
Trust and effective regulation give us a strong foundation. Equally important to our future success is to fast-track widespread adoption of digital and Al technologies across the Department’s enterprise sector. The Department has seen first hand the impact that Al can have on boosting productivity and enhancing competitiveness in firms of all sizes. The Department’s key focus is to empower more businesses, particularly SMEs, to do exactly that. The Department is working with the local enterprise offices, European digital innovation hubs and enterprise agencies to ensure that every SME is aware of the benefits of Al use and the State supports available to them. These range from targeted funding programmes, expert guidance and consultancy to research and development grants. The Department is building on this momentum and recently announced a further €23 million in additional funding for lreland’s four European digital innovation hubs to support SMEs in their uptake of Al and other cutting edge digital technologies. These hubs in Cork, Dublin, Mullingar and Sligo are delivering real and practical supports that help SMEs understand, test and adopt advanced digital technologies with confidence.
Ireland already has a strong reputation as a choice location to research, test, develop and scale the latest cutting-edge technologies. This has not happened by chance. It is the result of sustained investment in our talent, creativity and capacity to innovate. The impact of this investment can be clearly seen in initiatives like the Disruptive Technologies Innovation Fund. This fund awards funding to collaborations between SMEs, multinational corporations and research performing organisations and Al is increasingly at the centre of these projects. The number of DTIF projects placing Al at the core of their solutions has grown rapidly. To date, €183 million has been invested by Government in the 51 DTIF projects that place Al at the core of their solutions. The Department is determined to accelerate this progress even further so that Ireland remains well positioned as new technologies continue to evolve. Our recently announced sectoral capital plan reflects that ambition. It will strengthen Irish SMEs and attract world-class foreign investment. Under this plan, €1.33 billion has been allocated for enterprise innovation and commercialisation, including €190 million in funding for technology centres, €196 million for the Disruptive Technologies Innovation Fund, €170 million for European Space Agency programmes and €120 million for Important Projects of Common European Interest.
Innovation is what drives our competitiveness. By investing in disruptive technologies, research collaborations and digital transformation, the Government is positioning Ireland as a global leader in advanced manufacturing, Al and space technologies. The Department also allocated €250 million to the seed and venture capital programme and €100 million to a new scaling fund for Irish SMEs. The Department will continue to develop an environment where funding for entrepreneurs is accessible, and ambition is backed so that transformative ideas that create jobs and drive progress can be realised and scaled right here in Ireland.
The Government shortly plans to publish an updated national digital and Al strategy, which will set out a clear roadmap for lreland’s digital and Al adoption and development in the years ahead. The strategy will take a whole-of-government approach. Alongside commitments to Al adoption across sectors and company sizes, it will address the wider critical enablers for a successful digital economy, building on Ireland’s strengths in digital skills to infrastructure and the way we deliver our public services.
As Ireland prepares to take the wheel for the Presidency of the Council of the European Union, it is a huge opportunity for Ireland to shape and drive forward work in the areas we believe are of the greatest relevance for the European Union and, crucially, its citizens. Next October Ireland will host an Al and digital summit in Dublin. This will be a flagship event bringing together over 1,000 participants to include thought leaders, businesses, governments and innovators. The Department is looking forward to showcasing lreland’s leadership in Al and digital innovation, fostering collaboration across EU member states, and exploring opportunities for ethical, sustainable, and inclusive technology development.
This debate comes at a particular moment but it is a timely one regardless. It gives us a great opportunity to discuss events that have occupied the public mind over the past number of days and weeks, and indeed have haunted the minds of many people who use social media or, more pertinently, have children who use social media. It also gives an opportunity to talk about the wider strategy. I look forward to engaging thoughtfully and earnestly with all Deputies from across the aisle and the Minister of State, Deputy Niamh Smyth, looks forward to responding at the end of the debate.