Leo Moore

Now in its third edition, the report provides a 10-year view of how Irish business attitudes to technology, regulation and investment have evolved across 2016, 2021 and 2026. This year’s findings show that AI and other transformative technologies have moved firmly onto the C-suite agenda, with business leaders increasingly focused on how these technologies can reshape operations, deliver value for customers and generate measurable returns.

The report, based on research conducted by Ipsos B&A with 412 senior business decision-makers across the country, found that while 80 per cent of large Irish businesses have invested in AI, 70 per cent of businesses overall have yet to do so. Among larger businesses, only 11 per cent report having achieved a positive return on AI investment to date, while 69 per cent remain concerned about extracting measurable value from AI tools already procured.

Ireland remains highly attractive as a location for technology and AI investment and is now ranked as the number one European jurisdiction for AI and technology investment, ahead of Germany, the Netherlands and the UK. It also shows that Ireland’s appeal has evolved significantly over the past decade. In 2016, the corporate tax rate was the leading driver for technology investment, while in 2026, proximity to customers and ease of doing business have moved to the fore, reflecting a shift from financial incentives to operational capability, regulatory certainty and market access.

The report also highlights a major shift in how businesses view regulation. In 2016, the incoming GDPR was widely seen as a compliance challenge. By 2021, 89 per cent of respondents rated Ireland’s regulatory regime as good to excellent. In 2026, businesses increasingly view EU-wide technology regulation enhancing business of certainty, compared to decentralised legal regimes in other markets, with 47 per cent saying a uniform EU approach enhances business certainty.

However, the report also points to a regulatory readiness gap. While 81 per cent of large businesses now rank legal and regulatory compliance as their number one consideration when adopting technology, such as AI, 55 per cent of businesses say they are not aware of what EU laws apply to their technology adoption.

However, the report warns that Ireland’s competitive position will depend on how quickly businesses can close gaps in AI adoption, specialist skills, governance, cybersecurity resilience, energy security and compute infrastructure.

Leo Moore, head of technology at William Fry, said: “Ireland is entering the next phase of technology disruption from a position of real strength. We have a deep technology base, a strong pro-business environment and a regulatory framework that many organisations increasingly see as a source of certainty rather than a barrier to innovation.

“However, the findings also point to a clear AI readiness gap. Large, well-resourced businesses are building the legal, contractual and operational foundations needed to deploy AI at scale, while many medium-sized businesses have yet to begin their journey. Closing that gap will be one of the defining competitiveness challenges for Irish businesses over the next five years.

The report identifies return on investment as one of the central issues now shaping AI adoption. While investment is accelerating among larger organisations, many businesses remain at an early stage in turning AI pilots and experimentation into measurable commercial outcomes.

Barry Scannell, partner at William Fry, said: “The report shows that AI investment is accelerating and that return on investment is still emerging. This is not surprising. AI is a new frontier for business and, as with any major technology transformation, it will take time for investment to translate into measurable commercial value.

“The organisations beginning to see returns are generally the early adopters: businesses that have identified practical use cases, invested in the right skills and governance, and aligned AI deployment with clear commercial objectives. The next challenge for Irish businesses is to move from experimentation to execution.”

Cybersecurity and skills remain significant barriers to progress. Only 17 per cent of businesses say they feel confident their organisation can keep pace with AI-driven cybersecurity threats, while a lack of AI skills is cited by 43 per cent of businesses as a barrier to growth.