Ireland’s small and medium-sized businesses (SMBs) are set to double down on AI, but they’re doing so with a clear-eyed understanding of the challenges ahead. A new report from Viatel Technology Group and Amárach Research reveals a promising surge in adoption, alongside a sharp focus on planning, privacy and security.
The report, “AI Horizons: Insights into AI Adoption, Security and Risk in Irish SMBs”, paints a picture of a market poised for a significant shift. The survey conducted among 150 Irish business decision makers found that while 31% of Irish SMBs report that no AI adoption has taken place to date, 80% expect to be engaged with AI from early trials to extensive use within the next 12 months.
This shift isn’t just about trying the latest trend; it’s about real, impactful integration. The extensive use of fully integrated AI is set to more than double, rising from 7% to 17% in the same period, indicating a move beyond simple curiosity to genuine, strategic implementation.
Crucially, the report highlights that for businesses already using AI, the benefits are undeniable. 98% of those organisations using AI find it useful, underscoring its tangible value.
“This research offers a timely and comprehensive exploration of the current AI landscape, uniquely tailored to the Irish context,” says Lisa Hunt, Microsoft Practice Director at Viatel Technology Group.
“The report focused on Irish companies with up to 500 employees, who are well aware of the need to unlock the full potential of artificial intelligence but cannot afford failed experiments, and need to demonstrate a worthwhile return on investment. Trusted external support is critical in ensuring that every organisation is equipped to compete in the race to AI.“
While the appetite for AI is strong, 95% of Irish SMBs see significant barriers. Leading the charge are concerns over security (38%), a lack of technical expertise (35%), and a missing AI policy or framework (33%). Irish firms are keenly aware of the competitive disadvantage of not adopting AI, but they are also wary of the uncertain return on investment and the potential for financial loss from failed projects.
Policies and roadmaps are seen as crucial to avoid pitfalls, but a staggering 87% of businesses don’t have a formal AI policy in place, and only 5% have a detailed roadmap with a timeline and budget. The report also highlights a significant knowledge gap, revealing that 35% of SMBs simply don’t know where to start when it comes to implementing proper AI governance.
“There’s a lot of noise around AI, and a lot of people are talking about it,” said James Finglas, Managing Director of Digital Services at Viatel Technology Group. “Unfortunately, very few are actually doing it. At Viatel, we’re actively partnering with public and private sector organisations on their AI frameworks; getting the policies, people, and processes in place to roll out AI; to truly deliver return on investment and contribute to business goals.”