A new report from Microsoft Ireland and Trinity College Dublin Business School reveals that AI Adoption in Northern Ireland (NI) has surged, with 88% of organisations reporting that they are now using AI in some form for work purposes.
The adoption of AI is expected to generate an uplift to UK real GDP of 2.98% by 2035, highlighting the significant economic potential of AI, and the potential for substantial improvements in productivity, efficiency, and revenue for Northern Ireland.
Drawing on insights from 300 senior leaders across the island of Ireland (250 in Ireland and 50 in Northern Ireland) from both the public and private sectors, this new report from Trinity College Dublin and Microsoft Ireland provides a snapshot of current rates of AI Adoption.
Potential Economic Impact of AI to Northern Ireland
The research highlights how the positive sentiment towards the transformative potential of AI within organisations is rising. Remarkably, 52% of respondents in NI believe AI could significantly boost their net revenue by 30-70% within the next year. This optimism is echoed by 86% who view AI as a key driver for economic growth and job creation. The usefulness of AI is also widely endorsed, with 92% agreeing on its usefulness, and 93% acknowledging the impact of the AI tools they have implemented.
Shadow AI Culture
In line with other global research, a “Shadow AI Culture” persists in organisations whereby employees independently adopt AI tools without the organisation’s oversight. The report reveals a diverse landscape regarding the use of free AI tools within organisations. A mere 8% of organisations in NI strictly prohibit the use of free AI tools, whereas a substantial 62% have no formal policy, indicating an absence of structured governance around AI adoption. Interestingly, 30% of NI organisations actively promote the use of such tools, embracing a more open approach.
The report also reveals that 70% of NI respondents are aware of individuals leveraging AI tools for specific tasks within their organisations, with 26% reporting frequent usage. Strikingly, a significant 90% of NI leaders admit to employing free AI tools themselves, pointing to a potential disconnect between leadership practices and organisational policies. Although the broad utilisation of free AI tools can enhance productivity and foster innovation, it does present data security and privacy challenges. These risks could be mitigated through the more systematic integration of enterprise tools within organisations.
AI Skilling
A clear trend is emerging towards integrating AI skills into the workforce. Remarkably, 94% of NI respondents anticipate hiring individuals with AI expertise within the next 1-3 years, underscoring a robust recognition of the value AI brings to current and future roles. Confidence in the adaptability of the existing workforce is also pronounced, with 74% of NI respondents believing that staff can quickly become proficient in using AI in their daily tasks.
Further stats from the report on responsible AI, AI readiness and government support, include:
- 29% of NI respondents are in the process of planning, developing, or have already instituted an AI policy, indicating a growing awareness and commitment to structured AI integration.
- 82% of respondents believe that AI can play a pivotal role in supporting their organisation’s sustainability and ESG (Environmental, Social, and Governance) objectives.
- 80% express confidence in their organisations’ preparedness and 78% acknowledge that their organisational culture is conducive to AI integration.
- 76% of organisations have implemented enhanced data security measures and 78% believe their organisations adopt a responsible approach to AI integration.
- 80% feel that existing government policies and regulations within their industry often act as barriers to the adoption of new technologies.
“AI is increasingly recognised as a transformative technology, driving economic growth and innovation. This report highlights AI’s potential to revolutionise Northern Ireland’s economy,” said Catherine Doyle, General Manager, Microsoft Ireland. “Northern Ireland is uniquely positioned to leverage AI’s capabilities, thanks to its vibrant tech ecosystem, government-backed initiatives, and access to both UK and EU markets. The synergy between strong research institutions and industry further enhances R&D in AI. However, to fully unlock AI’s potential, we must address challenges such as expertise gaps and cost constraints. At Microsoft, we are committed to equipping businesses with the tools, skills, and strategies necessary to thrive in the AI-driven economy. By investing in AI education, scalable technologies, and strategic partnerships, we can ensure that the benefits of AI permeate every sector, positioning Northern Ireland as a global leader in AI innovation.”
“Our research shows that, while there are many similarities in the way AI is being increasingly adopted by organisations in Northern Ireland, and other locations (including Republic of Ireland), there also exist unique challenges and opportunities. With a high percentage of business leaders recognising support from government and the role of AI in enabling organisation’s sustainability efforts, there exists a unique opportunity to use AI responsibly and become a leader in AI-driven transformations in all aspect of business.” said Dr. Ashish Kumar Jha, Associate Professor of Business Analytics at Trinity Business School and co-author of the report.
