AI Job Growth Outpacing International Competitors

According to the Expert Group on Future Skills Needs (EGFSN), AI-related roles are being created in Ireland at two to three times the pace observed in neighbouring countries. The disparity is stark when examining job market demand: close to 12 per cent of job postings in Ireland reference AI skills, compared to 4 per cent in the US and 6 per cent in the UK.

This acceleration represents a significant shift in the Irish labour market. The share of Irish job postings referencing AI skills fluctuated between 4 and 6 per cent from 2019 to 2023, and has since doubled, with a marked increase over the past year.

Enterprise AI Adoption Accelerating Across All Sizes

The EGFSN report, authored by Diarmaid Smyth, draws on Eurostat data to show rapid AI uptake across the Irish enterprise sector:

  • Large enterprises: AI usage rose from 31.2 per cent to 57.3 per cent between 2021 and 2025
  • Medium-sized firms: AI adoption rose from 13.2 per cent to 28 per cent over the same period
  • Small firms: AI adoption rose from 6.1 per cent to 16.8 per cent between 2021 and 2025

While all firm sizes are adopting AI, the gap between large and small enterprises in AI adoption has widened over time, pointing to an emerging divergence in productivity potential across the Irish enterprise sector.

The Two-Speed Economy Risk

The EGFSN report warns of a risk of a two-speed economy, in which larger Irish firms capture a disproportionate share of AI-related productivity gains. This divergence comes at a time when employment patterns are shifting unevenly across demographic groups.

Youth Employment Concerns

CSO figures show employment growth among people aged 15 to 24 in Ireland has been flat over the past two years and contracted over the past year. This contrasts sharply with broader employment trends: employment across the Irish economy grew by an average of 2.2 per cent over the same two-year period in which youth employment stagnated.

According to the EGFSN report, AI is likely responsible for at least some of a recent slowdown in employment among young people in Ireland. However, the report states it remains “too early to be definitive” about whether AI is causing significant job losses across the Irish economy.

Source: The Irish Times