The economic opportunity of generative AI in Ireland

Generative AI will boost global economic growth in the coming decade. It can increase productivity and boost Ireland’s competitiveness. To capture the next wave of AI benefits across society, Ireland needs to promote commercialisation and secure widespread AI knowledge.

An Implement Consulting Group study commissioned by Google has estimated generative AI’s GDP contribution and implications on jobs in Ireland. Capturing the full potential of generative AI, however, depends on a number of drivers of AI adoption – from a robust operating environment to the availability of skilled AI practitioners.

Key findings of the study

• Economic Opportunity: Generative AI could boost Ireland’s annual GDP by EUR 40-45 billion, amounting to +8% GDP in peak year if widespread adoption is achieved. Generative AI technology is developing faster than previously anticipated, and the peak economic contribution could come sooner than expected, already in around ten years.
  
  The gains come from three sources, including productivity increases from people working with generative AI, freed-up time from generative AI’s automation potential and the re-employment of time to other value-creating activities.
  
• Job implications: In Ireland, 66% of jobs are expected to work together with generative AI, 28% of jobs are likely to remain unaffected by generative AI, and only 6% of jobs are deemed highly exposed to generative AI, leading to some job closures. However, new jobs in the AI-powered economy are expected to replace those lost to automation, resulting in unchanged employment levels.
  
  
• Key sectors benefitting: Generative AI is most effective in automating knowledge-intensive tasks, such as those carried out in IT-services, finance and business services. However, due to the vast size of Ireland’s manufacturing sector (45% of Irish GVA), this sector holds the largest economic potential, whereby generative AI is estimated to boost annual productivity growth by 1.2% at peak and increase value added by around €15-16 billion.
  
  
• AI readiness: Ireland is doing well on AI adoption drivers, but trails behind globally on AI innovation capabilities. Current gaps suggest that Ireland is at risk of losing its frontrunner position and needs to focus on strengthening AI-related innovation drivers, such as the build-up of AI-related talent and research.

Ireland should leverage its strong tech environment and promote upskilling and commercialisation to maximise the benefits of AI.