Dáil Éireann Debate, Wednesday - 17 December 2025
193. Deputy Emer Currie asked the Minister for Enterprise, Tourism and Employment if the Government has assessed the level of AI adoption among Irish SMEs and retailers; and the supports that will be introduced to help small businesses safely integrate AI tools. [72741/25]
View answerThe European Commission’s 2025 Annual Report on the State of the Digital Decade, published in June 2025, provides a comparative view of Ireland’s digitalisation progress relative to other EU Member States. The findings indicate that Irish businesses perform well overall, but there is room for improvement.
On measures of AI adoption, 13.8% of Irish SMEs report using AI, which is above the EU average of 12.6%. This has increased steeply from 2023, when only 8% of SMEs reported using AI.
More detailed CSO analysis indicates that while the pace of AI adoption over 2024 has been rapid, a strong digital divide is apparent. 25% of medium (50 or more employed), and 12% of small sized enterprises were using AI compared to almost 51% of larger companies.
The Expert Group on Future Skills Needs (EGFSN) report, AI and the Irish Labour Market, was published in November 2025. A key finding of the report is that enterprise usage of AI has surged, with adoption rates doubling in recent years.
There is currently no specific assessment of AI adoption within the retail sector.
The National Digital and AI Strategy is currently being updated and will have a significant emphasis on AI throughout. A key priority of the Strategy will be to enable SMEs to harness AI to improve productivity, drive efficiencies and enhance competitiveness.
To support this transition, a wide range of enterprise supports are already in place:
• The Grow Digital Voucher offers up to €5,000 to small businesses (under 50 employees) to adopt digital tools like e-commerce, AI, cybersecurity, and website development.
• The Digital for Business consultancy scheme—a free service which connects businesses with expert advisors to assess needs and develop tailored plans.
• The Grow Digital Portal showcases success stories from non-tech businesses embracing digital transformation.
• Ireland’s four European Digital Innovation Hubs (Dublin, Cork, Mullingar, Sligo) help SMEs and public bodies adopt key technologies: AI, cybersecurity, and high-performance computing.
• The Cyber Security Review Grant (worth €3,000), to help businesses strengthen their online security.
Finally, the establishment of a new AI Office of Ireland in 2026, an independent statutory entity which will be the central coordinating authority for the EU AI Act, will be a major milestone, providing clarity and regulatory certainty for enterprise. A critical function of the Office will be to act as the focal point for responsible AI innovation and adoption in Ireland.
