Ireland’s startup ecosystem is setting the pace for AI adoption in Europe, according to a new AWS report titled “Unlocking Ireland’s AI Potential 2025”. The report, based on survey data of 1,000 Irish businesses, highlights how agile Irish startups are rapidly integrating artificial intelligence (AI) into their core operations, with 36% of Irish startups embedding AI at the core of their business model, higher than the 29% European average.
Irish startups are also seeing measurable gains from this adoption, with 94% of Irish businesses reporting a significant increase in revenue thanks to adopting AI, with an average 36% revenue increase directly linked to their use of AI.
“The data in this report aligns closely with our observations in the field – Irish startups are demonstrating a strong commitment to integrating emerging technologies,” said Niamh Gallagher, AWS Country Lead for Ireland. “Many of these companies clearly recognise that AI is becoming increasingly important for maintaining competitiveness, attracting investment, and pursuing global expansion opportunities.”
During the AWS Gen AI Loft Dublin tour, Niamh Gallagher met with Niamh Smyth, Minister for the Department of Enterprise, Trade and Employment with special responsibility for Trade Promotion, Artificial Intelligence and Digital Transformation. The Minister was presented the “Unlocking Ireland’s AI Potential 2025” report and taken through the key findings. During the event, leading Irish startup founders shared how AI is already transforming their industries.
Minister Smyth, praising the role of startups in Ireland’s AI leadership, said “These findings make it clear that startups are central to Ireland’s digital future,” she said. “They’re leveraging AI not only to grow, but to lead the transformation of entire industries—from safety tech to genomics and climate solutions.”
“This report validates our approach to keeping children safe online,” said Rena Maycock, founder of Chirp, a safety-focused tech company. “Using GenAI to enhance our datasets has enabled us to detect and block harmful communications and offer real-time protection for children and families—something that simply wouldn’t be possible with conventional tech alone.”
“At Jentic, we’re building AI-native infrastructure for the agent era, enabling AI agents to dynamically discover, load, and execute the exact tools they need, precisely when they need them,” said Dorothy Creaven, Chief Operating Officer of Jentic. “This report reinforces what we’re seeing every day: Ireland’s startups are not just adopting AI, they’re pushing the boundaries of how AI is applied at scale.”
“The report reflects what we’re seeing on the ground,” added Sean Mullaney, Founder & CEO of Seapoint. “AI isn’t just enhancing finance tools—it’s fundamentally changing how startups manage money, make strategic decisions, and scale. It’s enabling us to build the intelligent financial home we always wished we had.”
Across Ireland, businesses are integrating AI at an accelerating pace, with 45% now using AI, marking a 32% growth in just one year, up from 34% last year. This growth is outpacing the European average, where, overall, 42% of businesses are now consistently using AI at a growth rate of 27%.
The report also found that Irish businesses reported a 25% year-on-year increase in AI investment, exceeding the European average of 22%.
Wide, but shallow adoption: The two-tier economy
Many businesses, particularly large enterprises, are not leveraging the most advanced uses of AI. This risks a two-tier AI economy between startups and large enterprises. The research identifies three distinct stages of AI adoption in Ireland, outlining the gap between businesses that are merely experimenting with AI and those that are fully embedding it into their operations for transformative impact.
Stage 1: First steps
- Two thirds (66%) of Irish businesses are in the early stages of AI adoption, primarily using publicly available chatbots or basic AI tools for routine tasks (e.g., chatbots, scheduling assistants)
- Large enterprises are slow to progress beyond basic AI applications with 83% remaining at the most basic stage of AI integration
Stage 2: Transformation
- The divide between startups and large enterprises becomes pronounced at this stage. Startups continue to set the standard on AI integration—25% are currently at this stage and exploring how they can integrate AI more deeply within their organisations, more than triple that of large businesses (7%).
Stage 3: Strategic Innovation
- A small proportion of businesses are at this stage and are using AI not just to improve efficiencies, but also as a fundamental pillar of their strategy. 26% of startups have reached stage 3, integrating AI across operations, compared to only 8% of large businesses.
- (17%) of businesses at this stage are building custom AI systems or apps tailored to their specific needs, and additionally, 17% of businesses report full AI integration, where AI is seamlessly embedded across operations.
“This report highlights the remarkable pace of innovation in today’s startup ecosystem,” said Tricia Troth, General Manager, Startups UK & Ireland at AWS. “We’re seeing startups move beyond AI experimentation to implement practical, strategic applications. The data shows how founders are increasingly focused on integrating AI into their long-term growth and scaling strategies.”
Read the report in full HERE
