Rising Need for AI-Skilled Workers

Demand for workers with AI and digital skills has ramped up, as a significant number of businesses report grappling with severe talent gaps. A new survey published today by the business group Ibec highlights that a staggering 82% of businesses are currently experiencing significant skills deficits, describing such gaps as a “strategic handbrake” that restricts their capacity to keep pace with rapidly evolving technologies.

The findings from Ibec’s 2025 Skills Survey unveil a troubling mismatch between available roles and the talent pool, showcasing the changing landscape of the job market. Employers are increasingly concerned that competition for talent will intensify in the next five years, potentially exacerbating existing difficulties. This urgency is underscored by the fact that seven out of ten companies reported challenges in recruitment over the past year.

According to the report, roles demanding robust AI skills are notably prevalent across various sectors, including content generation, data analytics, marketing, risk management, and even manufacturing. The report’s insights into the urgent need for skilled workers reflect broader operational pressures faced in a tight labor market.

These pressures have not only affected recruitment efforts but have also led to increased frustration and potential burnout among existing employees who are often required to cover multiple positions due to these skills shortages. As reported, one in four businesses indicated a notable increase in staff losses and absenteeism linked directly to this issue, further emphasizing the detrimental impact on overall productivity.

A critical takeaway from the report is the identified “preparedness gap” for technology adoption between large and small businesses. The survey reveals that while 30% of large organizations engage in AI training, only 13% of smaller enterprises do the same. A large proportion of bigger firms reported having both larger training budgets and a commitment to developing essential skills, contrasting sharply with the lower investment levels seen in smaller businesses.

Furthermore, while Ireland’s lifelong learning engagement among adults improved to 16%, these figures still lag behind European leaders such as Sweden and Denmark, which sit at 42% and 32% respectively. To address these challenges, Ibec calls for government intervention to establish a national scheme aimed at incentivizing employer investment in training and preparing for significant market trends.

Meadhbh Costello, the report’s author and Ibec senior executive for skills and innovation policy, articulates the urgency of action required, noting the impending €3 billion surplus in the National Training Fund. She stresses that proactive measures are vital to equip the workforce for the future, advocating for access to proven upskilling programs. Costello also raises concerns about companies contributing to the National Training Fund but struggling to secure the essential supports needed, highlighting a need for improved funding towards respected training initiatives like Skillnet business networks, which are recognized globally.