Ireland's AI forecast: Time is running out
Ireland is positioning itself as a hub for Artificial Intelligence (AI) innovation, leveraging its strengths in research and innovation. However, the country faces challenges, such as high electricity costs and limited access to large-scale data centers, which put it at a disadvantage compared to other regions.
Despite these hurdles, Ireland can boost its AI innovation by making strategic use of public data resources while ensuring privacy. A clear-eyed appraisal of the scale of the AI challenge and pace of change is crucial for Ireland to avoid being an observer rather than a leader in the age of AI.
Recently, Ireland missed out on securing a position as a host for one of the EU's AI Factories, highlighting the need for the country to address its data center capacity and regulatory environment. The government has announced an updated National Development Plan that includes significant investments in key sectors like energy and infrastructure, although specific AI-related allocations are not emphasized.
A Comparative Analysis
Northern Ireland
Northern Ireland is making significant strides in AI, with its economy projected to double by 2028. The region is strong in practical AI implementation and benefits from targeted investments and initiatives like the Artificial Intelligence Collaboration Centre (AICC) at Ulster University. A recent £30 million investment in science and technology sectors, including AI and cybersecurity, further supports this growth.
Europe
The European Union is actively promoting AI adoption across its member states by establishing AI Factories and investing heavily in AI research and skills development. The EU aims to invest over €20 billion annually in AI, focusing on training AI professionals and ensuring regional innovation.
Asia Pacific
The Asia Pacific region is expected to experience the fastest growth in the AI market, with a projected annual growth rate of 20% between 2025 and 2034. This rapid expansion is driven by robust investment in AI technologies and favourable business environments in countries like China and Japan.
North America
North America, particularly the United States, continues to dominate the global AI landscape, capturing over 37% of the market share in 2024. The region's strong presence in big tech and access to substantial data resources give it a competitive edge in AI innovation.
Key Differences
- Data Access and Costs: Ireland struggles with high energy costs and limited access to large-scale data centers, contrasting with regions like North America and the Middle East where data access and financial resources are more readily available.
- Regulatory Environment: Ireland and other European countries are working to clarify and streamline regulations to support AI innovation, while regions like North America have well-established tech ecosystems but face challenges related to privacy and data governance.
- Investment in AI: The EU's widespread investment in AI through initiatives like AI Factories and skills training is distinct from Ireland's more generalized investment plans, which lack specific AI allocations. Northern Ireland's targeted investments in AI and cybersecurity demonstrate a focused approach to AI development.
- The EU's AI Act will impose a detailed regulatory roadmap over the coming years.
- The effectiveness of the EU's or US/UK approaches towards AI is uncertain.
- Byrne argues for clear ethical frameworks in education, considering the current use of AI tools.
- Other countries are moving faster in AI development with considerable resources.
As Ireland prepares for an AI summit during its EU presidency in 2026, the new AI office, operational by next year, will implement the EU's AI Act. Meanwhile, the new AI observatory will assess the technology's effects, including employment disruption and future skills needs. Fianna Fáil TD Malcolm Byrne, the chair of the committee, believes Ireland could position itself as "the AI island." However, the divergence in approaches between the EU and the US/UK could have significant impacts on competitiveness.
Ireland can leverage technology and artificial-intelligence (AI) to address its challenges and position itself as a leader in the age of AI, as illustrated by the strategy employed by Northern Ireland. To boost AI innovation, Ireland should focus on making strategic use of public data resources while ensuring privacy and ethical frameworks, as suggested by Fianna Fáil TD Malcolm Byrne.
In its quest to become an AI island, Ireland will face competition from regions with more readily available data access and financial resources, such as North America and the Asia Pacific. The successful implementation of the EU's AI Act, coupled with the establishment of an AI office and an AI observatory, may help Ireland narrow the gap and achieve competitiveness in the global AI landscape.
