Ireland Seeks to Build AI Businesses, Not Just Host Them

Ireland has long been a hub for technology in Europe, with major tech companies establishing significant operations and contributing to a strong tech sector.

The country is now focusing on moving beyond AI adoption to building AI businesses, developing intellectual property, and creating lasting economic value.

The recent International AI Summit in Dublin, during Ireland’s EU Council presidency, highlighted the need for Ireland to shift from hosting and regulating AI to becoming a center for AI product development.

Ireland’s position at the intersection of US tech investment and the European single market provides a strong foundation for this shift.

Microsoft’s Global AI Diffusion report shows Ireland has the highest AI user share in the EU at 49.9%, significantly above the global average of 18.8%.

While global AI debates focus on foundational elements like energy and data centers, Ireland’s opportunity lies in applying AI to industries such as technology, financial services, life sciences, and healthcare.

Investment in Irish AI firms has reached €947.3 million across 182 deals since January 2025, with €256 million invested in 75 deals in 2026 alone.

The challenge is ensuring that this investment leads to businesses, intellectual property, and economic value that remain in Ireland.

Regulation is a key factor, with Ireland needing to balance effective oversight with fostering a competitive AI sector.

The Dublin Declaration on trustworthy AI emphasizes that regulation and competitiveness should reinforce each other, not conflict.

Ireland’s regulators must have sufficient resources and expertise to support businesses and ensure clarity in the regulatory framework.

The proposed AI Regulatory Sandbox could help businesses engage with regulators as they bring new products to market.

Trust is essential, particularly in sectors like financial services and life sciences, and regulators must provide clear, proportionate rules to support innovation.

Ireland’s success in the AI economy depends on its ability to move from hosting AI to building AI businesses and applications.