A new survey reveals that while Ireland has emerged as Europe’s leading destination for AI and technology investment, a significant AI readiness gap is emerging across Irish business.
The third William Fry Technology Report, which was launched today at the William Fry AI Summit in Dublin, provides a ten-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 found that while 80% of large Irish businesses have invested in AI, 70% of businesses overall have yet to do so.
Among larger businesses, only 11% report having achieved a positive return on AI investment to date, while 69% remain concerned about extracting measurable value from AI tools already procured.
William Fry said that 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.
Today’s report shows the country’s appeal has evolved significantly over the past decade.
It noted that the corporate tax rate was the leading driver for technology investment in 2016, while proximity to customers and ease of doing business have moved to the fore this year. This reflects a shift from financial incentives to operational capability, regulatory certainty and market access.
Today’s report also points to a regulatory readiness gap. While 81% of large businesses now rank legal and regulatory compliance as their number one consideration when adopting technology, such as AI, 55% of businesses say they are not aware of what EU laws apply to their technology adoption.
Leo Moore, Head of Technology at William Fry, said that 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,” Mr Moore said.
“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,” he noted.
“Closing that gap will be one of the defining competitiveness challenges for Irish businesses over the next five years,” he added.
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,” he said.
“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,” he stated.
“The next challenge for Irish businesses is to move from experimentation to execution,” he added.
