Ireland’s AI Investment Gap: A Ticking Time Bomb for Global Competitiveness

As artificial intelligence reshapes the global economic landscape, a stark warning has emerged from Ireland’s business community: while Irish executives recognize AI as critical to future success, their investment patterns tell a different story. According to groundbreaking research from Forvis Mazars’ C-suite Barometer: Outlook 2026, Ireland’s AI investment lags significantly behind global counterparts, creating what experts warn could become a serious competitive vulnerability.

The Paradox of Irish Business Leadership

The numbers paint a troubling picture. While 68% of Irish executives have formal technology transformation strategies in place—with AI positioned as a cornerstone of their long-term growth plans—only 10% allocate more than 20% of their technology budget to artificial intelligence initiatives. This stands in stark contrast to the global average of 15% of companies investing at that level.

“This isn’t just a funding issue—it’s a strategic misalignment that could cost Irish businesses their competitive edge,” warns Liam McKenna, partner at Forvis Mazars in Ireland. “Irish business leaders are convinced of AI’s importance and are moving fast to implement it. What is concerning is the investment gap.”

The research, which surveyed 3,012 C-suite leaders globally including significant representation from Ireland between October and November 2025, reveals a paradox at the heart of Irish business strategy. Executives express the highest confidence in AI’s return on investment among all technology investments, yet their budget allocation doesn’t match this conviction.

The Global Context: Why Ireland’s Lag Matters

In an era where AI adoption increasingly determines market leadership, Ireland’s conservative investment approach could have far-reaching consequences. As global competitors pour resources into AI infrastructure, talent acquisition, and innovation, Irish companies risk being left behind in what many consider the most transformative technological shift since the internet revolution.

The gap becomes even more pronounced when examined against the backdrop of Ireland’s ambitious economic goals. As a nation that has successfully positioned itself as a European tech hub—home to the European headquarters of major tech giants and a thriving indigenous startup ecosystem—falling behind in AI investment could undermine decades of strategic positioning.

Job Creation and Displacement: The Human Element

The Forvis Mazars research also sheds light on AI’s impact on Ireland’s workforce. Of participating Irish leaders, 44% reported the creation of new roles specifically around AI, suggesting the technology is generating opportunities rather than simply eliminating positions. However, nearly a quarter of leaders reported job displacement, indicating a workforce in transition.

“This suggests a workforce in transition with skills evolving rather than disappearing, though it raises questions about reskilling, talent development, and education pipeline readiness,” the report notes. The emergence of roles such as AI auditors, ethics specialists, and machine learning engineers points to a rapidly evolving job market where traditional career paths are being redefined.

Ethical Considerations and Responsible Adoption

Despite the investment gap, Irish business leaders aren’t ignoring the ethical implications of AI adoption. Three-quarters of participating Ireland-based leaders expressed concerns about the ethical and societal implications of AI, demonstrating a sophisticated understanding of the technology’s broader impact.

“Irish businesses are grappling with responsible AI deployment, trying to harness a competitive advantage while managing social and governance risks,” the report states. This balanced approach—recognizing both the opportunity and the responsibility—could prove crucial as regulatory frameworks around AI continue to evolve globally.

The Skills Imperative

The conversation around AI investment in Ireland cannot be separated from the skills gap conversation. Morgan McKinley’s 2026 Irish Salary Guide, published last week, reinforces this connection. While Ireland’s labor market remains active, hiring has become increasingly disciplined, with improved salaries and positions reserved for those with skills deemed critical to delivery or risk management.

In the technology ecosystem specifically, the most in-demand roles include data engineering, cybersecurity analytics and risk specialization, machine learning engineering and data science, AI auditing and AI ethics, automation, and DevOps. Notably, new roles for AI auditors and ethicists have emerged as direct responses to evolving regulatory frameworks.

Bridging the Investment Gap: A Call to Action

McKenna’s message to Irish business leaders is clear and urgent: “The organizations that win in the next three to five years will be those that move decisively on AI investment while managing risk and ethical and societal concerns in parallel.”

This requires more than just increased budget allocation. Success demands a comprehensive approach that includes building the infrastructure, skills, and governance frameworks necessary to support responsible AI adoption. McKenna emphasizes the need for stronger collaboration between business, education, and government to unlock AI’s full potential as a competitive advantage.

The Path Forward: Strategic Imperatives

For Irish businesses looking to close the investment gap and maintain their competitive position, several strategic imperatives emerge:

First, immediate budget realignment is necessary. The gap between expressed confidence in AI ROI and actual investment levels must be addressed through concrete financial commitments.

Second, talent development must accelerate. With new AI-specific roles emerging and existing roles evolving, organizations need robust reskilling and upskilling programs to ensure their workforce can leverage AI effectively.

Third, governance frameworks need strengthening. As ethical concerns remain prominent, businesses must develop comprehensive approaches to responsible AI deployment that balance innovation with risk management.

Fourth, collaboration across sectors becomes essential. No single organization or sector can address the AI challenge alone—partnerships between business, academia, and government will be crucial for building the ecosystem necessary for AI success.

The Competitive Stakes

The research makes one thing abundantly clear: the time for deliberation is over. Irish businesses face a critical juncture where their approach to AI investment will largely determine their competitive position for years to come.

“The investment gap isn’t just about money—it’s about mindset,” McKenna explains. “Organizations need to move from seeing AI as an optional technology investment to viewing it as fundamental infrastructure for future competitiveness.”

As global markets become increasingly AI-driven, the question isn’t whether Irish businesses will invest in AI, but whether they’ll invest enough, fast enough, and strategically enough to maintain their position in an increasingly competitive global landscape.

The data suggests that while Irish executives understand the stakes intellectually, translating that understanding into action remains the critical challenge. The businesses that bridge this gap—aligning their investment with their strategic vision—will be the ones that define Ireland’s economic future in the AI era.

Tags:

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ViralSentences:

Irish businesses risk missing the AI opportunity while global competitors surge ahead
The AI investment gap could cost Ireland its competitive edge in the digital economy
Business leaders express confidence in AI ROI but fail to back it with budget
New AI roles are emerging while traditional jobs evolve—not disappear
Ethical concerns about AI haven’t stopped Irish businesses from pursuing adoption
The organizations that win will be those that move decisively on AI investment
Ireland’s workforce is in transition with skills evolving rather than disappearing
Morgan McKinley reveals Irish employers prioritizing critical skills over headcount
AI auditors and ethicists emerge as new roles in response to regulatory frameworks
The time for deliberation is over—Irish businesses face a critical AI investment juncture
Bridging the investment gap requires more than money—it demands mindset change
Collaboration between business, education, and government is essential for AI success
Three-quarters of Irish leaders express ethical concerns about AI adoption
Only 10% of Irish companies allocate more than 20% of tech budget to AI
Global average AI investment stands at 15% compared to Ireland’s 10%
44% of Irish leaders report creating new AI-specific roles
Nearly a quarter of leaders report job displacement due to AI
Irish businesses are grappling with responsible AI deployment
The investment gap raises questions about sustaining competitive advantage
AI is considered critical to competitive advantage but investment doesn’t reflect this
Professional services firm Forvis Mazars sounds the alarm on Ireland’s AI vulnerability
C-suite leaders worldwide were surveyed in research conducted October-November 2025
68% of Irish executives have technology transformation plans in place
Irish businesses investing at lower rates than global peers risk competitive vulnerability
Now is the time for boards to align investment with AI strategy
Skills in data engineering, cybersecurity, and machine learning are most in demand
The labor market is active but increasingly disciplined in how it hires
New regulatory frameworks are driving demand for AI auditors and ethics specialists
Organizations need robust reskilling programs to leverage AI effectively
Governance frameworks must strengthen as ethical concerns remain prominent

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