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AI Adoption Among Irish SMEs Accelerates, with More Growth Expected

Published: 1 April 2025

A recent survey of 400 domestic SMEs has revealed a rapid adoption of AI in daily operations, with even more businesses planning to implement AI this year.According to TechCentral, the survey, conducted by eir evo and supported by Microsoft, found that 35% of SMEs have already integrated AI into their workflows, while nearly half (48%) plan to do so within the next 12 months.

These figures are striking, particularly given that, according to the Central Statistics Office’s Business in Ireland report, SMEs comprise 99.8% of Irish businesses. However, it is important to consider what specific AI applications these SMEs are utilising or planning to adopt.
The enthusiasm surrounding AI adoption echoes previous excitement about cloud computing, which if we were to take reports at face value, has become the default mode of computing. Yet, AWS CEO Adam Selipsky recently estimated that only 10-15% of global computation workloads actually run in the cloud. While Selipsky has a vested interest in AWS’s growth, his estimate aligns with the reality that most enterprises operate a hybrid mix of on-premise and cloud-based software.

This discrepancy raises questions about reported adoption figures. For instance, O’Reilly’s 2021 cloud adoption report stated that 90% of surveyed organisations used cloud technology, while the 2024 report claimed a 175% increase in ‘cloud-native’ development. Such figures depend largely on how ‘cloud’ is defined—whether it refers to cloud-based applications like Microsoft 365 or to advanced cloud infrastructure.
Similarly, the simplest path for businesses to adopt AI is through tools like Microsoft’s ChatGPT-powered Copilot, which is already integrated into Microsoft’s software and services. According to eir evo’s survey, SMEs expect AI to impact key areas such as customer service (32%), IT (27%), and sales (14%).

Despite imaginative notions of AI-driven salespeople, the reality is more grounded. AI-augmented sales are likely to involve software providing real-time insights to sales representatives. In IT, AI applications range from cybersecurity—which is already commonplace—to assisting helpdesk operations, which closely aligns with customer service.

Customer service remains one of the most likely sectors to be transformed by AI, for better or worse. However, it is important to manage expectations. No technology has completely eliminated mundane tasks—just as the ‘paperless office’ remains an elusive goal.
Nonetheless, eir evo’s survey indicates that 32% of SMEs believe AI could save them three to four hours of administrative work per week—a promising prospect. While technological advancements often fall short of their most ambitious promises, AI has already demonstrated its utility in streamlining tasks like invoice processing and note synthesis.

However, there is a broader concern: by offloading tedious work to AI, are we inadvertently fostering human complacency? While eliminating monotonous labour is a positive development, cognitive challenges—though sometimes frustrating—are often integral to the learning process. As AI continues to evolve, balancing efficiency with meaningful human engagement will be key.

Adapted from the following article techcentral.ie by Jason Walsh:

Are businesses doing more than dipping a toe in the water with AI?

 

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