Ireland now leads Europe in artificial intelligence adoption, with 65% of businesses using the technology, according to new findings from Amazon Web Services. That figure represents a sharp climb from 45% recorded in 2025.
The AWS report, Unlocking Ireland’s AI Potential, reveals that more than 160 companies begin deploying AI every single day. Results already show measurable impact. Two-thirds of adopters report productivity improvements, 70% anticipate growth benefits, and 76% say AI accelerates innovation.
Yet beneath those headline numbers lies a troubling gap. Only 20% of businesses use AI in advanced applications, meaning systems embedded within core operations and decision-making. The remaining 80% stick to basic implementations.
That divide carries a hefty price tag. AWS Ireland country lead Niamh Gallagher estimates unrealized value exceeding €10 billion. She warns that other European nations are moving quickly, and adoption rates alone won’t secure Ireland’s edge. Closing the gap demands investment in workforce skills, wider AI use across public services, and better regional access to technology and support.
The research, carried out by consultancy Strand Partners for AWS, points to a persistent digital skills shortage as the biggest obstacle. Just 18% of Irish companies claim strong AI capabilities today. Meanwhile, 85% expect AI skills to matter in their industry within five years.
Public sector action could unlock faster adoption. More than 80% of businesses say they would embrace AI if government integrated it into its own systems. A similar share want grants and tax incentives. Startups feel this pressure most acutely: 38% say public sector adoption remains crucial for scaling. However, 36% cite slow or complex procurement processes as a hurdle.
Enterprise minister Peter Burke acknowledged the progress while urging continued momentum, especially among smaller firms. He stressed that accelerating AI and digital adoption across enterprises will strengthen competitiveness and productivity.
