This morning, I was in the Westgrove Hotel in Clane with the County Kildare chamber, where there were 60 businesses represented. I was giving a keynote speech on the supports for SMEs that the State was providing and some simple use cases for AI by small and medium-sized enterprises, which really transform their businesses.
In February, the Government published the Digital Ireland: Connecting Our People, Securing Our Future strategy, which was a significant policy developed by the Government. The strategy looked at the digitalisation of public services and the use of AI, which is due to go across Departments, trying to identify efficiencies and ways in which the Government can deliver services to the public in a better and more practical manner.
Some elements of the strategy have already come into being. The AI regulation Act, enacted in July, brought into being the AI Office of Ireland - Oifig IS na hÉireann - with Paul Byrne as its first chief executive officer. He has taken to the role extremely well. The first AI sectoral champions have also been appointed. I commend the Minister of State, Deputy Niamh Smyth, in particular, for her work.
On Wednesday of next week, we will have the International AI Summit, which will be one of the key events of the EU Presidency this year and also one of the largest international AI events taking place not only in Europe, but globally, in 2026. While there are extremely positive developments here, what is key for any type of policy like this is how it is being tracked. How do we track delivery, particularly when it goes across Departments and is not specific to, for example, the Department of enterprise, where AI actually sits? This is where we can realise substantial benefits, particularly when it comes to public services.
There is a need for greater sectoral adoption. The sectoral champions have been appointed, but we need to ensure that our SMEs are adopting AI properly. We had the Microsoft AI diffusion report, which showed that Ireland was first in Europe for AI adoption and third globally, which is significant. However, real adoption is very different from simply using AI. Somebody logging on and putting a query into ChatGPT or Copilot is very different from someone creating an agent to help run a business, whether for payroll or whatever else.
The risk with that, and something we have to be really cognisant of, is tokenisation. As companies such as Anthropic, which operates Claude, and OpenAI look to float publicly, either later next year or the year after, there is a chance that the cost of using AI will increase significantly, not just for SMEs, but also for the State. We need a strategy to look at how we will tackle that if it does come into being. If we are trying to get our businesses to adopt AI, then we need to ensure that they can afford it.