Despite significant external volatility, artificial intelligence continues to be a major driver of Ireland’s economy.
Ibec, the group representing Irish business, has today (16 July) published its latest Quarterly Economic Outlook report, which explores many of the issues impacting Ireland’s economy.
It found that despite significant pressures and global volatility affecting growth, AI-related investment, investment in public infrastructure and resilient consumer spending are all continuing to support the economy.
Gerard Brady, Ibec chief economist and head of national policy, explained that we are seeing early evidence of the impact artificial intelligence is having on the country’s economic figures. He said that total trade in AI-related goods to and from Ireland is on track to double across five years, reaching €56bn annually.
He explained that there has been a significant investment in ICT equipment and software, to the value of almost €6bn in the past year, which is a 50pc increase compared to 2025 and double the amount from 2024. He said that within business, the impact of AI on the competitive environment, investment, trade and the labour market is clear, that these figures will only grow over time.
Commenting on the report, Brady said, “Given that we are only at the foothills of understanding the impact of AI on our economy, the full picture has yet to emerge. We may not be at the forefront of developing new AI models, but early evidence suggests we have an opportunity to be a central node in AI-related supply chains.
“We also have a massive opportunity to be the country with the best-prepared workforce for the generational change in work and skills currently underway. However, our participation in lifelong learning hovers around the EU average, well below where we want to be for an open, global and sophisticated economy.”
He explained that Ireland’s current economic success is firmly rooted in its commitment to investing in a manner that enables the country to be at the forefront of new technological shifts in the global economy.
“We have a tangible opportunity to get ahead of other countries because we have a large training fund, in the form of the National Training Fund, paid for by employers, with a €2bn surplus. This cannot be left idle,” he said. “This fund must be deployed to support the workforce transition, prepare us for change and set Ireland up as a frontrunner in the emerging global economy.”
For Ireland, despite global pressures – such as the US-Iran ceasefire collapse, US tariffs and the uncertainty around the Strait of Hormuz – exports have remained relatively resilient. However, Ibec did find that it will be 2027 and beyond before we can fully understand the true impact of tariffs on Ireland’s exporting sectors.
Brady said, “We expect exports, which grew by around 7.5pc in 2025, to rise only marginally in 2026 as a consequence of this ‘whiplash’ effect. However, exports are projected to resume strong growth at 4pc in 2027. The story within the domestic economy is more prosaic. Consumer spending is holding up, but inflation will dent its trajectory.
“While the labour market is showing signs of softening, investment remains strong. Most of the levers to support long-term economic development, such as infrastructure delivery, skills development, regulation, and supporting innovation and digitalisation, remain firmly within our control.”
Ibec also recently issued a new report exploring the correlation between workplace AI and consistent learning strategies. The ‘Skills for all, skills for life’ report warned that unless there is a deliberate shift in the national approach to lifelong learning, Ireland will fail to capitalise on the long-term economic potential of AI.
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