AI Adoption Soars in Ireland, But Skills Gap Threatens Productivity Gains
Ireland is experiencing widespread adoption of artificial intelligence (AI) across businesses of all sizes, but a growing gap in AI maturity between large organizations and small-to-medium enterprises (SMEs) could hinder national productivity and economic growth, according to new research from Trinity College Dublin and Microsoft Ireland. The findings, released on April 29, 2026, reveal that whereas 92% of organizations are currently using or planning to use AI, significant disparities exist in skills investment and organizational readiness.
Time Savings and Productivity Boosts
AI is demonstrably freeing up employee time across the Irish economy. Mid-sized organizations are reporting gains of up to 1,000 hours per month, while large multinational corporations are experiencing time savings of up to 5,000 hours monthly. Notably, SMEs that invest in AI are more likely to report significant productivity gains compared to larger organizations (18% vs. 8%).
Large organizations are twice as likely as SMEs to save two or more hours per employee each week (54% vs. 25%), with the gap widening to an eightfold difference at the highest levels of time savings. Seven in ten leaders report a reduced workload, and one in three attribute this to AI enabling them to disconnect more effectively, with 26% reporting less operate during evenings and weekends.
The AI Maturity Gap: SMEs Lagging Behind
Despite near-universal adoption, only 10% of leaders describe their organization’s AI deployment as advanced or frontier-level. SMEs are disproportionately concentrated at the early stages of AI implementation, creating a widening maturity gap. This gap is further highlighted by the fact that organizations with a formal AI policy are ten times more likely to report major productivity gains (30% vs. 3%). Currently, fewer than half of organizations (44%) have a formal AI policy in place, a potential concern as provisions of the EU AI Act take effect on August 2, 2026.
Gender Confidence Gap in AI Usage
A notable gender disparity exists in AI confidence and literacy. 70% of women report hesitating to use AI at work, compared to 52% of men – an 18-point difference. This hesitancy is mirrored in lower self-reported AI literacy among women.
Looking Ahead
The AI Economy Ireland 2026 report underscores the importance of addressing the AI maturity gap and fostering greater confidence in AI usage across all demographics. Closing these gaps will be crucial to maximizing the economic benefits of AI and ensuring inclusive growth in Ireland.
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