Generative AI Could Boost Ireland’s GDP

A report by Accenture has revealed that generative artificial intelligence (Gen AI) has the potential to contribute significantly to Ireland’s economy, with projections suggesting an increase of up to €148 billion in the country’s annual GDP by 2038. This technology promises not only substantial monetary benefits but also major productivity enhancements across various sectors.

Projected Productivity Gains Across Industries

The research highlights several key industry sectors that are poised to experience notable productivity uplifts from Gen AI. For instance, the life sciences sector is projected to see gains of approximately 20%, while the financial services sector could benefit even more, with productivity increases projected at around 30%. Altogether, if organizations tap into the full capabilities of Generative AI for automation and augmentation, savings across all industries could amount to a striking €22.2 billion annually.

Public Sector Advantages

Interestingly, the public sector is anticipated to reap the most significant benefits from the implementation of Gen AI technologies. According to the findings, up to 42% of working hours in the Irish public sector, excluding healthcare, could be enhanced by these advancements. The report paints a picture of a future where AI optimizes workflows and processes, leading to a more efficient public service.

Collective Action Required for Success

Hilary O’Meara, Accenture’s Country Managing Director in Ireland, remarked on the country’s opportunity, stating, “Ireland stands at a pivotal moment in its AI journey, with the potential to add €148 billion to annual GDP by 2038.” However, she stressed that achieving this potential hinges on collective action among the full ecosystem—government, businesses, and academia—to create a skilled workforce and nurture responsible innovation.

Challenges to Realising AI Potential

Despite these promising prospects, the report also identifies several risks that could hinder Ireland’s ability to maximize its AI potential. These include a growing deployment gap between organizations that have embraced AI and those lagging behind, a skills gap among the workforce, and uncertainties regarding decision-making by leaders on AI implementation.

Peter Burke, Minister for Enterprise, Trade and Employment, highlighted the report’s relevance to business leaders, suggesting it serves as a useful guide for taking actionable steps and building trust in the responsible deployment of AI technologies. He emphasized the need for continuous evolution alongside technological advancements, urging both homegrown firms and multinational entities to improve productivity through transformation.

Thorough Research Methodology

Accenture’s study employed a comprehensive approach, utilizing economic modeling, surveys conducted with employees and executives, alongside interviews, client experiences, and real-world case studies to underpin its findings. This thorough methodology assures the credibility of the report’s predictions and projections regarding the impact of generative AI on Ireland’s economy.