I move: "That the Bill be now read a Second Time."
I am very pleased to bring this Bill before the House today. The purpose of the Bill is to give full effect in Ireland to EU Regulation 2024/1689 of the European Parliament and Council, and of the EU's Artificial Intelligence Act, which I will refer to throughout as the AI Act.
The Al Act is designed to provide a high level of protection to people's health, safety and fundamental rights and to promote the adoption of human-centric, trustworthy Al.
As with all EU regulations, the Al Act has direct legal effect across all member states. It aims to harmonise rules for Al systems across the EU, creating a single market and ensuring a consistent approach to risk, safety and fundamental rights. With those aims in mind, this Bill is a technical implementing measure. It neither adds to nor alters the obligations placed on regulated entities by the Al Act. The Bill establishes essential domestic regulatory architecture for the supervision and enforcement of the Al Act in the State.
A central feature of the Bill is the establishment of oifig intleacht shaorga na hÉireann, the Al office of Ireland, as an independent statutory body. Our new Al office will be designated as the single point of contact for our citizens at home, the European Commission and other member states. In this role it will support consistent enforcement of the Act and facilitate co-operation between competent authorities and fundamental rights bodies. The office will promote Al innovation and literacy and oversee the Al regulatory sandbox, which will foster innovation and support startups and SMEs in compliance with the Al Act.
The Bill also empowers our competent authorities and it creates a robust administrative sanctions framework. The Bill establishes a regulatory foundation on which to build trust in society for an evolution of Al that serves as a tool for people, with the ultimate aim of increasing human well-being.
Artificial intelligence is one of the defining technologies of our era. Its applications now reach into virtually every corner of the economy and society, from healthcare and financial services to the delivery of public services and much more. Al has brought remarkable benefits. It is accelerating scientific discovery, improving outcomes in medicine, expanding access to services and generating significant economic opportunity. Our national digital and Al strategy, Digital Ireland: Connecting our People, Securing our Future, sets out Ireland's ambition to be a global hub for applied Al innovation.
Al also carries real risk, however. Without appropriate oversight, it can embed and amplify discrimination, manipulate behaviour or exploit the vulnerabilities of people, posing threats to the health, safety and fundamental rights of our citizens. The Al Act, which entered into force in August 2024, is the first ever legal framework designed to address these concerns while simultaneously fostering innovation of responsible and ethical Al. The Al Act is a risk-based, horizontal regulation. It applies across all sectors of the economy, both private and public, with targeted exemptions for national defence, national security and purely personal use. Crucially, its measures are proportionate: most Al systems will give rise only to minimal risk and can be marketed and used subject to existing legislation, without additional obligations under the Al Act. This ensures that the EU and Ireland remain competitive for Al investment and innovation. The Al Act also takes into account the specific interests and needs of SMEs in terms of simplified obligations and tailored supports.
There are five main pillars to the Al Act, which set out obligations across a number of categories and uses of Al systems and models. Under prohibited practices, eight Al practices are prohibited due to the unacceptable risk they pose to European values and fundamental rights, including practices such as harmful manipulation, social scoring and real-time remote biometric identification. Given the rapid development of technology, the Al Act also provides for the list of prohibited practices to be kept under regular review. Stringent requirements apply to high-risk Al systems used in eight areas set out in the Al Act, such as biometrics and critical infrastructure. Under transparency obligations, specific requirements apply to Al systems that interact with users, generate synthetic content with risks of impersonation or enable deepfakes. Under the general purpose Al pillar, providers of general-purpose Al models face obligations to mitigate systemic risks. Enforcement will be led by the European Commission with member state co-operation. Under the enforcement pillar, member states are required to designate competent authorities to supervise and enforce the regulation of Al and to provide for significant penalties, with fines of up to €35 million or 7% of global annual turnover for the most serious infringements.
I will now speak to the importance and urgency of the legislation. Ireland has a key position in the European regulatory landscape. Eight of the leading providers of foundational Al models are established here. These are the companies at the frontier of Al development and deployment globally. Maintaining the competitiveness and viability of Ireland's digital economy is an overarching national imperative, as outlined in Programme for Government: Securing Ireland's Future, and is the driver behind a number of key commitments in the Government's recently updated national Al and digital strategy.
As Ireland assumes the Presidency of the Council of the EU, meeting our obligations under the Al Act will further strengthen our position as an EU centre of excellence and digital regulatory hub. It will also demonstrate our commitment to fostering responsible, human-centric Al innovation, both domestically and across Europe.
There is also a firm legal deadline. Enforcement of prohibited Al practices posing unacceptable risks, as set out in Article 5 of the Al Act, takes effect as of 2 August 2026. Ireland must have the necessary national supervisory and enforcement infrastructure in place by that date. I acknowledge the considerable complexity and pace of work required to reach that point. The EU allowed a comparatively short window between the Al Act entering into force and its application. The complexity of the Bill, combined with the parallel development of the EU's digital omnibus proposal, has required extraordinary efforts from my officials, the Office of the Parliamentary Counsel and the Office of the Attorney General. To them I am most grateful.
As I have noted, and as Deputies will no doubt be aware, the EU's digital omnibus on Al, a set of targeted amendments to the Al Act, was provisionally agreed in May 2026 and approved by the European Parliament in June. Ireland supports the agreed omnibus, which helps increase legal certainty and reduce administrative burden. Importantly, the omnibus extends certain implementation timelines, including for transparency obligations and high-risk Al system requirements. However, the omnibus does not extend the timeline for enforcement of prohibited Al practices under Article 5. The 2 August 2026 deadline remains firm, and this Bill addresses it directly. Any amendments to domestic legislation that may be required following formal adoption of the digital omnibus on Al will be addressed as part of phase 2 of this work in the autumn. The second phase will also provide an opportunity to further enhance Al regulation in accordance with the Al Act if required.
Having set out the context and the urgency of the Bill, I will now outline its provisions. The Bill is structured in ten Parts, with 139 sections and 4 Schedules. Its overarching policy objective is to ensure that the Al Act can be comprehensively and effectively implemented here in Ireland.
Part 1 of the Bill, comprising sections 1 to 5, inclusive, provides for the Title and commencement, key definitions, regulation-making powers, service of documents, and expenses, to provide that the costs of administering the Act are funded with the appropriate ministerial approval.
Part 2 is set out over sections 6 to 40, inclusive, and provides for the establishment of oifig IS na hÉireann and its governance structure, including appointment of its board, CEO and staff and its accountability, funding and functions. Sections 12 to 23, inclusive, are concerned specifically with matters relating to board governance, with provisions on board establishment and membership, appointment process, terms of appointment, membership of either House of the Oireachtas, remuneration, conflict of interest and others. Sections 24 to 33, inclusive, relate to the chief executive officer role and provide for the matters relating to the CEO's appointment, resignation, accountability and functions. Sections 34 to 36, inclusive, relate to the staff of oifig IS na hÉireann and confidentiality.
The appointment of staff is subject to the Public Services Management (Recruitment and Appointments) Act 2004 and the Civil Service Regulation Acts 1956 to 2005. Sections 37 to 40, inclusive, provide for funding and accountability, including the strategy statement, accounts and annual report.
Part 3, comprising sections 41 to 52, inclusive, provides for the practical operational infrastructure underpinning enforcement of the Al Act in Ireland. Section 42 designates the Al office as the national single point of contact in relation to the public and other counterparts at member state and Union levels, and to help increase organisational efficiency as required by the Al Act. Section 43 provides that the Al office will establish and maintain a national Al register, recording all instances of prohibited Al practices, serious incidents involving high-risk Al systems, and other required notifications. Transparency and public accountability are embedded from the outset. Section 46 provides for the establishment of Al regulatory sandboxes under the supervision of the Al office. SMEs and start-ups are to receive priority access. Sections 48 to 50, inclusive, make provision for real-world testing of high-risk Al systems in controlled conditions, subject to appropriate safeguards, oversight, and rights of review.
Market surveillance authorities are a key cohort of the national competent authorities required for the implementation of the Al Act and Part 4 sets out, at sections 54 to 62, inclusive, the general obligations and powers of market surveillance authorities, including the power to receive complaints from the public. Section 59 enables fundamental rights bodies to request the testing of high-risk Al systems where infringements of fundamental rights are suspected. Sections 63 and 64 are concerned with co-operation agreements of relevant market surveillance authorities. Sections 65 and 66 set out data protection matters for relevant competent authorities.
Part 5 provides market surveillance authorities with a comprehensive, structured, and proportionate enforcement toolkit, progressing from co-operative compliance measures through to coercive intervention. Authorised officers, appointed by each market surveillance authority under sections 68 to 70, inclusive, will have powers to enter premises, inspect relevant Al products and records, require the production of information, and take samples. Section 71 provides that contravention notices may be issued requiring an operator to remedy a breach. Section 72 provides that prohibition notices may be issued to stop an Al system from being placed on the market or put into service where it poses a risk or breaches the Al Act. Sections 73 and 74 provide powers for seizure, disposal, and forfeiture of unsafe Al products and, under section 75, in the most serious cases, for the removal of online content to eliminate serious risk. Section 77 provides rights of appeal to the District Court throughout.
Part 6 establishes, at sections 78 to 120, inclusive, the independent adjudication system for the imposition of administrative fines for breaches of the Al Act. Sections 79 to 86, inclusive, provide that where a market surveillance authority believes an infringement has occurred and an authorised officer has conducted an investigation, the matter may, with the authority's consent, be referred to an independent adjudicator. The administrative fines, set out in section 105, are substantial and fully aligned with fines set out under the Al Act. For public bodies, fines are capped at €1 million, in line with the data protection legislation. Section 114 provides that no administrative fine takes effect without confirmation by the High Court, which is a key procedural safeguard. Sections 107 to 109, inclusive, provide for the rights of appeal. Sections 116 to 117 provide for the nomination of adjudicators by the Al office and appointment by the Minister for Enterprise, Tourism and Employment. Section 118 expressly provides for the adjudicators’ independence in the performance of their functions.
Part 7 of the Bill concerns penalties and miscellaneous provisions and, at sections 121 to 127, inclusive, sets out criminal penalties for obstruction of authorised officers, failure to comply with enforcement notices, and unauthorised disclosure of confidential information. Part 8, at sections 128 to 133, inclusive, amends the Central Bank Act 1942 to equip the Central Bank with the investigatory and sanctioning tools necessary for its role as a market surveillance authority under the Al Act. Part 9, at sections 134 to 137, inclusive, amends the Competition and Consumer Protection Act 2014 to equip the Competition and Consumer Protection Commission with the investigatory and sanctioning tools necessary for its role as a market surveillance authority under the Al Act.
Part 10, at sections 138 and 139, contains miscellaneous amendments, including consequential amendments to the Communications Regulation Act 2002, and the Freedom of Information Act 2014. Additionally, there are four Schedules governing oral hearing procedures, the assignment of adjudicators and the register of adjudicators.
In conclusion, establishing a credible and coherent Al enforcement regime in Ireland underscores our commitment to responsible Al development and is a core component of our international competitiveness offering. In this respect, the Regulation of Artificial Intelligence Bill 2026 matters to how Al will impact our society, our economy, our international standing and, of course, our future. It puts in place the enforcement structures that will protect people in Ireland from Al systems that pose unacceptable risks to their health, safety, and their fundamental rights. It provides the regulatory clarity and helps build the public trust that businesses, both indigenous and multinational, need to invest, operate, and grow with confidence.
As we assume the Presidency of the Council of EU, meeting our obligations under the Al Act demonstrates our commitment to responsible digital governance and to being a trusted partner in the EU. The implementing measures enabled by this legislation, including the establishment of the new Al office of Ireland, will provide an enduring foundation, strengthening our position as an EU centre of excellence and digital regulatory hub, and demonstrate our commitment to fostering and promoting responsible Al innovation and adoption both in Ireland and in Europe. It is imperative that the State has a comprehensive and robust legal basis for the full and effective implementation of the Al Act. I am confident this Bill achieves that objective in a balanced, proportionate and technically sound manner. I thank colleagues for their attention and commend the Bill to the House.