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AI adoption can add €250bn to Irish coffers, says Microsoft chief
Ireland can boost its per capita GDP by 42% with widespread AI adoption and supportive policies, once the nation's workforce is encouraged to embrace the opportunities currently emerging.
Catherine Doyle, general manager, Microsoft Ireland, cites her firm's recent analysis suggesting Ireland could aspire to adding anything up to €250bn to the economy by 2035.
In this Q&A interview, she outlines some of the national policy actions that would be helpful in optimising this opportunity. She also suggests some of the skills enhancements and other steps that can be taken within the workplace, starting small and rapidly growing the ambition for AI adoption.
How well — or otherwise — are businesses in Ireland adapting to the rise of AI?
AI adoption in Ireland has surged dramatically over the past year, with the adoption rate increasing from 49% to 91%, as highlighted in our recent report, The AI Economy in Ireland 2025: Trends, Impact & Opportunity, in collaboration with Trinity College Dublin. This growth showcases Ireland's proactive approach to leveraging AI's transformative potential, showing that Irish people are not merely observing the AI trend, but actively embracing it.
That said, we're still on a journey with AI. While larger companies and multinationals are leading the way with more comprehensive and strategic adoption, smaller businesses are making progress but still face real hurdles like cost, lack of expertise, and uncertainty around where to start.
We've consistently seen that successful digital transformations happen when an organisation has a change agent — someone within the organisation who champions technology adoption and inspires others to embrace new ways of working. To build this momentum, organisations should begin with small steps: experimenting with AI-powered productivity tools and identifying practical use cases where AI can deliver meaningful value, and then identify an individual who will drive and champion this change across the organisation.
In what way could business owners benefit from greater engagement with AI?
Business owners who actively engage with AI and explore its practical application stand to gain the most. Our recent research found 79% of senior business leaders said they had experienced productivity gains within their organisation. Still, 40% of Irish organisations haven't yet identified a clear AI business case, so aligning AI with business goals is crucial.
AI isn't just another tool — it's a general-purpose technology, much like electricity or the internet, transforming business operations, teamwork, and customer service. Early adopters are better equipped to anticipate market changes, personalise customer experiences, and streamline processes. For instance, companies using AI-powered analytics have halved the time spent on data collection, allowing teams to focus on strategic work.
Yet, despite these benefits, many organisations in Ireland still haven't aligned AI initiatives with their core strategies. The real breakthrough emerges when organisations directly connect AI adoption to their business vision, pinpointing valuable use cases and empowering teams with AI skills.
By embracing AI now and investing in people, business owners can move from simply adapting to change to leading it — delivering lasting value to customers, employees, and the wider economy.
What could be AI's potential contribution to business and the Irish economy going forward?
The economic opportunity here is significant. As highlighted in our report, with deliberate and strategic investments in AI skills and infrastructure, Ireland could add up to €250 billion into the economy by 2035. This is a tangible possibility if we act now and act together.
Our analysis shows that Ireland's per capita GDP could be 42% higher with widespread AI adoption and supportive policies compared to a scenario without AI. Even in more moderate projections, AI could still add over €60 billion more to the economy by 2035.
Our vision is for Ireland to become the most AI-advanced nation in Europe, leading in safe and rapid AI adoption by equipping an already highly skilled workforce. Ireland is possibly the most well-positioned to grasp this opportunity — leveraging its vibrant tech community, world-class talent, and strong government support to ensure AI delivers meaningful impact for society and the economy.
What guidance do you have to offer for employers and employees?
My advice is simple: don't wait. Now is the time to start small with AI adoption. For example, you can begin by using AI to assist in day-to-day tasks such as drafting emails, managing documents, and organising meetings. This will help you see the practical benefits of AI and identify use cases within your business where AI can make a significant impact.
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In addition, our report highlights a rising 'shadow AI culture,' where employees use unapproved AI tools without guidance, risking sensitive data. Organisations must prioritise secure, enterprise-grade AI solutions with strong security and privacy safeguards as adoption grows.
Alongside investing in tools, we need to invest in people. At Microsoft Ireland, we support organisations through initiatives like Skill Up Ireland, which helps build AI skills across the workforce. Upskilling your teams will better equip them to adopt AI confidently and responsibly.
Adoption should not just align with business goals but also with ethical considerations and regulatory frameworks. For instance, public sector bodies in Ireland are guided by the Guidelines for the Responsible Use of AI in the Public Service, which offer a practical framework to ensure AI is used in a transparent, fair, and accountable manner. Businesses — large and small — can look to these principles as a foundation for responsible AI integration, building trust with employees and customers alike.
At Microsoft, we've been proud to be part of Ireland's digital journey, working with both public and private sector organisations across Ireland for the last 40 years. Looking ahead, we're committed to ensuring that AI benefits everyone — businesses, employees, and society at large. Together, we can make Ireland a global leader in AI innovation.
