Ireland’s AI Advantage: Second in EU Skills, Fastest Job Growth

The Expert Group on Future Skills Needs (EGFSN) has published a report titled ‘The Irish Labour Market and AI in 2026’, revealing Ireland’s strong position in the European AI landscape. According to the report, Ireland ranks 2nd in the EU for AI skills, behind Luxembourg. More significantly, Ireland is generating jobs in the AI industry at 2–3 times the pace of other EU countries—a striking acceleration that sets the nation apart.

The EGFSN report found a robust pipeline of AI talent and strong demand for AI skills in Ireland. However, the analysis also highlighted a critical challenge: AI spread throughout Ireland is uneven, suggesting that while the nation is leading in aggregate numbers, regional disparities may be limiting the full potential of this growth.

Government Welcomes Report, Flags Adoption Challenge

Minister for Enterprise, Tourism and Employment Peter Burke welcomed the EGFSN report, describing Ireland as “a global leader in respect of AI adoption across the labour market.”

Yet Minister of State for Trade Promotion, Artificial Intelligence and Digital Transformation Niamh Smyth struck a more cautious note, stating that “the policy challenge centres on the capacity of businesses, workers and government to adopt and utilise AI effectively.” Her remarks suggest that while Ireland’s talent pipeline and job growth are exceptional, translating that advantage into widespread, effective AI deployment remains a work in progress.

Global Context: AI’s Uneven Employment Impact

New research from Goldman Sachs provides important context for Ireland’s position. The analysis found that industries with greater exposure to AI automation have generally seen slower job openings growth since the second half of 2022. This slowdown was particularly pronounced in Germany, Australia and the U.S.

Goldman Sachs found that employment in information and communication services—among the industries most exposed to AI—has slowed across nearly all major developed economies since 2022. Across the broader labour market, a 10% occupational exposure to AI was associated with only a 0.1 percentage point drag on annual headcount growth in France, Canada and the U.S.

The picture becomes sharper for entry-level workers. For this cohort, a 10% occupational AI exposure was associated with a drag of more than 0.6 percentage points on headcount growth in Australia and over 0.2 percentage points in the U.S.

Despite these headwinds in specific sectors and demographics, Goldman Sachs concluded that AI-related hiring pressures are clearly visible in employment data globally, but remain limited to a relatively narrow set of industries and workers. The firm notes that AI adoption is already widespread across developed economies, averaging roughly 15% to 20%.

For Ireland, this global context underscores both the opportunity and the responsibility: the nation’s exceptional job growth and AI skills ranking offer a rare advantage, but realising that advantage will require effective adoption strategies across business, government and the workforce.

Source: Westmeath Independent