ESRI: AI bubble a 'larger' risk to Irish economy compared to other economies outside of the US

If AI does not pay off, it could impact tech employment and corporation tax receipts

Google and Meta are just two of the large multinationals with significant operations in Ireland that are heavily investing in AI development. 

The risk to the Irish economy posed by AI is “larger” compared to other economies outside the US, and if the investment tech firms have put into the technology does not pay off, it could have an impact on employment as well as corporation tax receipts, the Economic and Social Research Institute (ESRI) has said.

In its latest quarterly economic commentary, the ESRI said despite all the headwinds this year, the Irish economy had a strong economic performance, but growth is expected to slow next year, with much of the downside risks coming through international channels.