On July 16, 2026, Ibec, the group representing Irish business, released its latest Economic Outlook report, highlighting the significant impact of artificial intelligence on Ireland's economy. The report indicates that despite global pressures, such as geopolitical tensions and trade tariffs, AI-related trade is projected to double over the next five years, reaching €56 billion annually. Gerard Brady, Ibec's chief economist, noted a substantial increase in investment in ICT equipment and software, which rose to nearly €6 billion in the past year, marking a 50% increase compared to 2025 and doubling the figures from 2024.
Brady emphasized that while Ireland may not be at the forefront of developing new AI models, there is a clear opportunity for the country to become a central node in AI-related supply chains. He pointed out that the workforce must be prepared for the generational changes in work and skills that AI will bring. However, he expressed concern that Ireland's participation in lifelong learning is currently around the EU average, which is insufficient for a sophisticated economy. The National Training Fund, with a €2 billion surplus, presents a significant opportunity to support workforce transitions and prepare for future changes.
The report also discussed the resilience of Ireland's exports, which grew by approximately 7.5% in 2025, despite the challenges posed by global events. However, it is expected that exports will only see marginal growth in 2026 due to the 'whiplash' effect of tariffs, with a projected strong growth of 4% resuming in 2027. The domestic economy shows signs of softening in the labor market, but investment remains robust, with key areas such as infrastructure delivery, skills development, and innovation firmly under control.
Ibec's findings underscore the importance of adapting to the evolving economic landscape shaped by AI. The organization recently published a report on the correlation between workplace AI and consistent learning strategies, warning that without a deliberate shift in the national approach to lifelong learning, Ireland risks missing out on the long-term economic potential of AI. The report serves as a call to action for policymakers and businesses to invest in education and training to ensure that the workforce is equipped to thrive in an AI-driven economy.
