Guest post by Elisabeth Kant (she/her) Head of Data Science at SumUp

Following the AI summit in Paris earlier this year, Taoiseach Micheál Martin stated "we need to embrace the opportunities that AI offers - for our start-ups and businesses, our public services, and ultimately for our citizens, and their quality of life.…If we don't, we risk losing out and forfeiting the enormous gains AI promises." In an increasingly digital world, small and medium-sized enterprises face a pivotal moment: adapt to technological change or risk being left behind.

While innovation was once the domain of large corporations, advancements in digital tools like automation and artificial intelligence are future-proofing SMEs, should they choose to adopt them. That includes the sectors we don't typically associate with cutting-edge innovation: your local salon, the family-run grocer or an independently run café.

AI is no longer a futuristic concept reserved for the few, it's part of a broader wave of digital tools that businesses must embrace to stay competitive. We've already seen examples of how adopting new technologies such as AI can make or break businesses. When looking at the booming e-commerce sector, for example, the rise of personalised shopping experiences thanks to artificial intelligence has had a great impact on how retailers are bringing their goods to customers.

It is no secret that the popularity of online shopping has led to many businesses leaning on algorithms to present their customers a personalised shop window. Those that have failed to adapt the opportunities AI has created in the space not only lose out on making their offerings more attractive to consumers, but risk losing their business by relying on outdated technology. AI is the new frontier of digital transformation, and organisations that oppose it risk falling behind.

Ireland's SMEs in the digital age

This digital transformation of SMEs in a plethora of other industries is currently being driven by tools that provide services like automation, AI, and cloud-based systems across Ireland. Once thought to be reserved for larger scale organisations, these technologies are now inexpensive, accessible, and for many, essential to the running of their business day to day.

SMEs are the backbone of the Irish economy, representing a third of the country's GVA according to the CSO, and the advantages of embracing digital technologies mentioned above are endless, with some being able to be integrated almost immediately. You don't have to be a tech company to benefit from technology - automation can deliver real value by taking repetitive tasks off the plate of any business. We're increasingly seeing examples like lead qualification for small sales teams or appointment scheduling for local restaurants - freeing up time for business owners to focus on higher-level strategic work.

AI, although sometimes seen as removing the human element from processes and procedures, can in fact customise client interactions, improve the sales process, and enable teams to provide a more bespoke experience. Hairdressers for example can use AI scheduling tools to personalise reminders and rebooking prompts. These benefits are especially important for SMEs, which operate with limited resources and where customer care is paramount.

The rise of AI

According to a recent report conducted by Trinity College Dublin and Microsoft Ireland, AI use in Irish enterprises increased significantly from 49% in 2024 to 91% in 2025. Among the SMEs surveyed, just under 40% of respondents are actively utilising AI, with 10% having adopted an AI strategy. However, there's a noticeable gap when looking at the AI usage in large multinational enterprises. Perhaps in order to gain a competitive edge in an ever-changing and evolving industry, following the example set by larger corporations could be beneficial, improving upon operational efficiency and customer service for example.

That being said, there are barriers SMEs face ...