Generative AI Could Boost Irish Economy by €40-45 Billion Over Next Decade

AI Could

Generative AI could lead to a €40-45 billion boost in Ireland’s economy over the next decade if fully adopted, according to a new study. Generative AI will be able to help with two-thirds of jobs, or 1.7 million roles. It seems unlikely that 800,000 jobs, or 28% of the total, will see any automation at all.

6% of positions, or 150,000 jobs, are likely to have more than half of their work fully or partially displaced by AI automation. The productivity loss resulting from this is estimated to cost between €1-2 billion.

Around 8% of Irish businesses had adopted at least one form of AI by last year, on par with the EU average but behind other Northern European states. 58% of Irish business leaders said AI has already improved the productivity of their staff. Just over 50% say it has led to the creation of fresh concepts that are already being used. The productivity effect of generative AI in Ireland will peak at 1.4% of GDP each year. A five-year delay in adopting generative AI could reduce GDP growth potential from 8% or €40-45 billion, to only 2% or €8-10 billion.

Ireland should incentivize partnerships and mentorship programs between multinational tech giants and SMEs to facilitate knowledge transfer and encourage AI adoption. The manufacturing sector could see the greatest impact, potentially boosting annual productivity growth by 1.2% or €15-16 billion. Gaps in AI drivers, such as talent, development, commercial, and research, need to be filled for Ireland to compete with large economies like the US.

Ireland has an opportunity to remain at the forefront of the AI transition by embracing new technology and leading innovation in Europe.

The Department of Finance is producing a report to stress test the labor market and identify areas at risk, with plans to respond in a way that maintains employment growth. Google Ireland is committed to bringing AI to Ireland in a bold and responsible way, focusing on reskilling and upskilling roles that might be impacted by AI.

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