Irish Tech Sector Leads Europe in AI Governance as Golden Age of FDI Evolves
Irish businesses are outperforming their global peers in deriving value from technology investments, with 89% of Irish tech leaders reporting improved value from their investments -- but experts warn that the country must adapt as the traditional model of foreign direct investment in tech faces disruption from artificial intelligence.
A new KPMG Global Tech Report reveals that Irish organisations are significantly ahead of the global average in technology performance. Some 94% of Irish organisations reported revenue growth over the past five years, compared to a global average of 79% reporting improved value from tech investments. Cybersecurity remains the top concern, with 44% of Irish tech leaders identifying cyberattacks as their main risk.
AI Governance: Ireland Leads the Way
On artificial intelligence governance, Ireland stands out globally. Some 97% of Irish organisations report close collaboration between IT, security, and risk teams for secure AI deployment -- significantly higher than the global average of 89%. This reflects a mature approach to AI risk management that positions Ireland well as regulators across Europe and the UK tighten their oversight of AI systems.
Investment in AI is a key strategic priority, with 70% of Irish organisations planning to invest in AI over the next 12 months. While this is slightly below the global average, Irish companies are more likely to have a clearly defined AI strategy in place, suggesting a more deliberate and structured approach to adoption.
The End of the Golden Age?
However, analysts are warning that the golden age of Irish tech -- characterised by massive foreign direct investment from US technology giants -- may be entering a new phase. The rise of AI is creating challenges for traditional software and hardware companies that have long been major employers in Ireland. Firms including Intel, Salesforce, Adobe, and Workday have faced investor concern about how AI will disrupt their business models, leading to calls for IDA Ireland to attract more significant AI-specific projects.
The government's Large Energy-User Action Plan (LEAP) specifically aims to attract the next generation of investment in energy intensive sectors, such as life sciences, semiconductors, AI and data centres. While major AI players including Alphabet, Microsoft, OpenAI, and Anthropic have a significant presence in Ireland, the number of jobs directly created by new AI-specific projects has so far been relatively modest.
What's Next
The primary challenge for Irish tech leaders is the effective execution of AI strategies to demonstrate tangible business value. The rapid pace of technological change means that strategic plans can become outdated quickly, requiring continuous reassessment. For Ireland as a whole, the question is whether the country can successfully transition from a hub for traditional tech FDI to a leading centre for AI-driven innovation.
Read the full KPMG report analysis at The Irish Times.
