Ireland has highest AI adoption rate in Europe, says Amazon report

But gap remains where just 20% of adopting businesses are using AI in advanced ways

Niamh Gallagher, Country Lead for Amazon Web Services in Ireland.

A report published by Amazon Web Services on Monday says that Ireland has the highest AI adoption rate in Europe, with 65% of businesses now using the technology, up from 45% in 2025.

The latest AWS Unlocking Ireland’s AI Potential report says that more than 160 businesses are adopting AI every day. It says that AI is already delivering results, with 66% of adopters reporting productivity gains, and 70% expecting growth benefits, while 76% say AI is accelerating innovation. However,  just 20% of adopters are using AI in advanced ways — where AI forms part of core business processes and decision-making. 

"Ireland now has the highest AI adoption rate in Europe, but other countries are moving fast, and adoption alone won't sustain our lead," said AWS Ireland country lead Niamh Gallagher.  "The gap between basic and advanced AI represents more than €10bn in unrealised value. To capture that, we need to invest in skills at every level, scaling AI across public services, and ensuring businesses in every region have the access and support they need to unlock the opportunity of AI."

The report, conducted by independent consultancy Strand Partners and commissioned by AWS, says a digital skills gap continues to be the single biggest hurdle hindering Ireland’s AI ambitions.  Only 18% of Irish businesses say they have a strong AI skillset today, yet 85% expect AI skills to be important in their industry in the next five years. 

More than four in five (81%) businesses say they are more likely to adopt AI if the public sector integrates it into its own systems, and 82% say government support such as grants and tax incentives are important in their decision to adopt. Similarly, 38% of startups say public sector adoption is crucial or very important to their ability to scale – though more than a third (36%) of businesses cite complex or slow public procurement processes as a challenge.

“This report demonstrates the progress Irish businesses are making in embracing digital technologies. While these findings are encouraging, we must continue to accelerate the adoption of digital and AI technologies across enterprises, particularly among SMEs, to strengthen competitiveness and boost productivity," said Enterprise minister Peter Burke.