Generating growth

In brief

• Gen AI could increase the long-term growth rate in Ireland’s economy, over the next 15 years (to 2038) by more than 50%.
  
  
• Without a people-centric approach, Ireland could leave €96 billion in economic value on the table.
  

• By taking coordinated action towards our five imperatives for AI-powered reinvention, organisations can multiply their chances of success fourfold.

Ireland's gen AI opportunity: For people, organisations and the economy

Ireland is positioned to become a global leader in the gen AI era. The technology could boost the nation’s long-term growth rate by 55% by 2038. But there is no guarantee the full potential for growth will be realised.

A people-centric approach is required, focusing on using gen AI to amplify human abilities. Too few organisations are taking this approach today. Without strategic intervention, €96 billion in economic value could be left untapped by 2038— an amount nearly equivalent to Ireland’s total public investment in 2024.

Focus on the future

Ireland has built strong foundations for the age of AI—but the cracks are beginning to show. We see three gaps emerging:

• Deployment gap: Organisations are struggling to move their use of gen AI beyond proofs of concept. Of the organisations that have piloted gen AI, most (91%) have not scaled its use across their business.
  

• Skills gap: Executives report that less than half (45%) of their workforce is confident in the digital fundamentals required for work. Nearly two-thirds (64%) of today’s workforce need reskilling. A surge in digital skills training is needed, and urgently.
  
  
• Trust gap: A lack of confidence between employees and executives is impeding gen AI adoption. Only half (50%) of people expect business leaders to be responsible and make the right decisions for gen AI to have a positive impact, and even fewer (38%) trust the government to do so.

Closing these gaps requires a people-centric approach. Our economic modelling forecasts that when employees are empowered to innovate and identify new opportunities, financial gains are greatest.

Make AI a multiplier

• 70% of the nation’s workforce could see at least a third of their working hours enhanced by gen AI.
  

• Yet, three out of five executives are prioritising investments in process automation that cut costs in the short-term over ones that transform people’s roles for the long-term.

There is a real optimism among Irish workers about the impact of AI. But more needs to be done to harness this enthusiasm.

• Five times as many people think gen AI will accelerate, rather than decelerate, their career progression.
  

• Many are moving ahead of their organisations: Half of the people using gen AI at work are self-starters procuring the tools they need themselves.

A formula for success

1 in 10 organisations are using gen AI at scale, so we know it can be done

What should public and private sector leaders do over the next 12 months to put their organisations—and the Irish economy—at the forefront?

Based on delivering more than 1,000 global gen AI projects, we see a formula for success emerging. We have identified five imperatives to accelerate the Ireland’s AI-powered reinvention:

1. Lead with value: Shift the focus from siloed use cases to prioritising business capabilities across the entire value chain and developing new, AI-enabled offerings.

2. Understand and develop an AI-enabled, secure digital core: Invest in technology that runs seamlessly and allows for continuous creation of new capabilities.

3. Reinvent talent and ways of working: Set and guide a vision for how to reinvent work, reshape the workforce and prepare workers for a gen AI world.

4. Close the gap on responsible AI: Create governance structures and a culture that operationalises AI responsibly, with decision-making processes that thoughtfully assess both the risks and rewards of the technology.

5. Drive continuous reinvention: Make the ability to change a core competency and part of company culture supported by an ecosystem of collaborators.

Our modelling estimates an organisation is four times more likely to succeed in scaling the use of gen AI if coordinated action is taken towards the five imperatives simultaneously.

Over the past 18 months, gen AI has captured imaginations; now, with this formula, it can deliver results.