Despite significant volatility, artificial intelligence continues to be a major driver of the economy.
Ibec, the Irish business body, has today (16 July) published its latest Economic Outlook report, which examines a range of issues affecting the Irish economy.
What it found is that despite the high pressure and global volatility affecting growth, AI-related investment, public infrastructure investment and strong consumer spending are all set to support the economy.
Gerard Brady, chief economist and head of national policy explained that we are seeing the first evidence of the impact of artificial intelligence on the country’s economic statistics. He finds that total trade in AI-related goods to and from Ireland is on track to double over the next five years, to €56bn a year.
He explained that there has been significant investment in ICT equipment and software, with a value of almost €6bn last year, which is an increase of 50pc compared to 2025 and double the figures from 2024. He finds, within the business, the impact of AI in the competitive environment, investment, trade and the labor market to be clear and expects that the statistics will only increase with time.
Commenting on the report, Brady said, “Because we are only in the beginning stages of understanding the impact of AI on our economy, the full picture has not yet emerged. We may not be at the forefront of developing new AI models, but early evidence shows that we have the potential to become a key node in the market for AI-related services.
“And we have a great opportunity to be a country with a workforce that is better prepared for the ongoing change in work and skills that is currently underway. However, our participation in lifelong learning is around the EU average, far below where we want to be in terms of an open, global and complex economy.”
He explained that Ireland’s current economic success is firmly based on its commitment to investment in a way that puts the country at the forefront of new technological changes in the global economy.
He said, “We have a real opportunity to go further internationally because we have a huge training fund, in the form of the National Training Fund, which is paid for by employers, with more than €2bn. This cannot be left idle. This fund must be deployed to support the workforce transition, prepare for change, and position Ireland as a leader in the emerging world economy.”
In Ireland, despite global pressure, such as the US-Iran fallout, US tariffs and the uncertainty surrounding the Strait of Hormuz, exports have remained strong. However, Ibec has found that it will be 2027 and beyond before we fully understand the true impact of prices on Ireland’s export sectors.
Brady said, “We expect exports, which grew by around 7.5pc in 2025, to rise only slightly in 2026 as a result of this ‘whiplash’ effect. However, exports are expected to resume strong growth at 4pc in 2027. The story in the domestic economy is more complex.
“Consumer spending has stagnated, but inflation will slow its pace. Although the labor market is showing signs of softening, investment remains strong. Most of the measures to support long-term economic development, such as infrastructure delivery, skills development, regulation and support for innovation and digitization, remain within our control.”
Ibec has also released a new report that examines the relationship between workplace AI and adaptive learning strategies. the ‘Skills for all, skills for life‘ The report warned that unless there is a deliberate change in the national approach to lifelong learning, Ireland will fail to harness the long-term economic potential of AI.
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