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Lead or be led: Ireland’s last chance to compete in a global AI race

As countries around the world race to harness the potential of artificial intelligence, Ireland faces a critical juncture. Urgent, coordinated action across government is needed, not only to seize emerging opportunities but to confront the very real risks that accompany them. That was the stark message delivered this week by Dr Patricia Scanlon, Chair of the Government’s AI Advisory Council and Ireland’s first AI Ambassador, at a hearing of the Joint Oireachtas Committee on Artificial Intelligence.

The urgency could not be starker. Dr Scanlon and fellow experts outlined two converging risks. The first is familiar: the societal risks posed by AI, from job displacement and privacy erosion to algorithmic bias, threats to fairness and human dignity, and the disruption to creative rights.

The second, and perhaps more insidious, is the risk of inaction. Without decisive adaptation, Ireland risks stalling innovation, undermining its competitiveness, and becoming shaped by this digital transformation, rather than shaping it. This warning is all the more timely given the latest World Competitiveness Rankings from the Institute for Management Development, which saw Ireland drop to seventh place, a notable decline that underscores the urgent need for strategic policy and investment in future-facing sectors like AI.

Chaired by Fianna Fáil TD Malcolm Byrne, the Committee heard that Ireland has the potential to become Europe’s preferred base for AI development, supported by strong foundations such as an educated workforce,  robust research capacity and a significant multinational presence. This view is echoed in a recent report from Microsoft and Trinity College Dublin, The AI Economy In Ireland 2025, which positions AI as a major economic driver over the next decade. The report’s economic analysis underscores that Ireland is strongly positioned to capitalise on this emerging technology, driving innovation, boosting productivity, and securing a competitive edge in the global digital economy. 

The report estimates that AI adoption could contribute at least €250 billion to the Irish economy over the next 10 years. Moreover, it highlights that with the right enabling environment and a coherent set of supportive policies, Ireland could unlock an additional €60 billion in economic value, reinforcing the case for timely and strategic investment in AI infrastructure, skills and regulation.

The choices Ireland makes now will determine its position in the rapidly evolving global AI landscape. With clear opportunities for driving economic growth and innovation, alongside significant risks that could arise if left unaddressed, the time for decisive and coordinated action is now.

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