Azets Ireland has unveiled new data which reveals that 60% of Irish businesses are using AI in some form as part of everyday operations.

AI adoption grows among Irish firms

The survey of 119 firms across Ireland in May 2025 reveals how Irish SMEs are using technology to future-proof their operations amid the accelerating digital transformation. Findings reveal growing rates of adoption of AI tools and technology, with the number of organisations using AI across their organisation every day rising by 11% since last November.

Despite growing levels of adoption, a significant proportion of firms remain at an early stage on their AI journey. 21% of firms have not yet integrated AI in their business, while 19% of firms are researching the technology but have yet to implement it within operations. Only 1% of firms consider themselves to be at the forefront of AI adoption and innovation in their sector.

Smaller firms lagging behind

There are also signs of a correlation between company size and adoption, with smaller companies struggling to keep pace with larger counterparts. 71% of micro businesses (10 employees or less) have yet to adopt AI within operations, compared to only 12% of large organisations.

The Finance sector has the highest level of AI adoption, with 76% of organisations having implemented AI in some capacity. This compares to 54% of firms in the construction sector and 53% of firms in the retail sector.

Cybersecurity tops business priorities

Findings show that cybersecurity is the top business priority for firms in Ireland, amid the rapidly evolving AI landscape. Data on key growth indicators show that firms expect to significantly strengthen cybersecurity over the next 12 months, scoring a projected change in capabilities at 6.7 out of 10. Digitalisation and future turnover follow at 6.4 out of 10, indicating an elevated focus on growth and technology investment.

Irish firms experience a lower level of cybersecurity incidents across Northern Europe

The results show that Irish organisations experienced the lowest level of cybersecurity incidents (30%) across the six northern European countries surveyed. This compares to an average of 38% across the UK, Denmark, Finland, Norway and Sweden. Only 8% of Irish firms reported multiple cyber incidents across the year, demonstrating a high level of cyber resilience across the Irish business community.

The construction sector experienced the highest average rate of cyber incidents, with 45% reporting at least one incident over the past 12 months. This is followed by the finance sector, with 43% of surveyed firms reporting a minimum of one incident. More than 1 in 3 (37%) medium-sized businesses reported a cyber incident over the past 12 months.

Commenting on the findings, Neil Hughes, CEO of Azets Ireland, said: "In an era of heightened economic and trade volatility, business leaders need to navigate their organisation through short-term turbulence while planning effectively for the future.

"Many SMEs in sectors such as hospitality, retail, and other family-owned businesses are under pressure as a result of the rising cost of business and need greater support if they are to grow and thrive into the future. Reducing the cost and regulatory burden on these businesses must be a priority in the months ahead.

"Despite these challenges, our findings show that leaders are taking decisive steps to future-proof their organisation and drive growth from harnessing the power of AI to strengthening cybersecurity. It's clear that leaders increasingly recognise the potential of AI to enhance productivity and efficiency across their organisation and are embracing the technology in their business.

"Not every business has the resources to keep pace with the rapid pace of innovation. Our findings show that small, owner-managed businesses in particular are struggling to advance innovation and embrace AI tools and technology. With a growing skills gap at many of these firms, it's crucial that d...