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AI-Related Trade to Double in Five Years, Boosting Irish Economy: Ibec
🇮🇪 Ireland /Economy & Trade

AI-Related Trade to Double in Five Years, Boosting Irish Economy: Ibec

From RTÉ News · () English

Translated from English, summarized and contextualized by DistantNews.

At a glance

News Named sources New plan
  • Trade related to artificial intelligence (AI) is significantly impacting Ireland's economy, with projections indicating it will double in the next five years.
  • Investment in ICT equipment and software has surged by 50% year-on-year, reaching nearly €6 billion, with most products likely imported for re-export.
  • Ibec forecasts inflation to rise to 3.6% this year due to energy price pressures and geopolitical uncertainty, potentially reaching 5.7% in a worst-case scenario.

Artificial intelligence (AI) is already making a substantial mark on the Irish economy, with business group Ibec projecting that AI-related trade will double over the next five years. This surge is reflected in a nearly 50% increase in investment in ICT equipment and software over the past 12 months, reaching close to €6 billion.

We may not be at the forefront of developing new AI models, but early evidence suggests we have an opportunity to be a central node in AI-related supply chains.

— Gerard BradyChief Economist and Head of National Policy, Ibec, on Ireland's role in AI.

According to Ibec's latest economic forecast, a significant portion of these AI-related products are likely imported into Ireland for onward export to the UK, continental Europe, and other regions. This is evidenced by notable spikes in inventory stocks within Ireland's national accounts. Ibec's Chief Economist, Gerard Brady, highlighted Ireland's potential to become a central node in AI supply chains and to foster a workforce well-prepared for the evolving nature of work and skills.

We also have a massive opportunity to be the country with the best-prepared workforce for the generational change in work and skills currently underway.

— Gerard BradyIbec's view on Ireland's potential in the AI-driven workforce transformation.

However, the impact of AI on jobs remains unclear. Meanwhile, Ibec has revised its inflation forecast upward to 3.6% for the current year, primarily driven by ongoing energy price pressures linked to the U.S.-Iran conflict and uncertainty surrounding the Strait of Hormuz. In a more severe scenario of escalating hostilities, inflation could reach 5.7% for the full year. The report also notes that U.S. tariffs and the front-loading of exports are expected to create a "whiplash" effect on 2026 growth figures, leading to a slightly slower GDP growth forecast of 0.9%. Despite these challenges, Ibec anticipates strong investment and continued consumer growth to support domestic demand.

The collapse of the US-Iran ceasefire less than three weeks after implementation began underlines the uncertainty running through the global economy this year.

— Gerard BradyCommenting on geopolitical factors affecting global economic uncertainty.
DistantNews Editorial

Originally published by RTÉ News in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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