80% of SMEs Say AI Can Transform Their Business, But Lack of Skills Keeps Adoption Rates Low

People standing at Google Ireland Sign

Google, Local Enterprise Offices And Enterprise Ireland launch AI Works for Ireland to help SMEs build practical AI skills and drive growth

Research at a glance:

  • 80% of Irish SMEs believe AI can positively impact their business and 65% expect it to drive growth in 2026
  • 20% of Irish SMEs are not using AI for any business task as yet
  • The main barriers preventing greater AI adoption include fear of making mistakes (30%), lack of skills (27%) and cost (24%)
  • One-third (33%) of micro-businesses (under 10 employees) are not using AI at all, compared to just 7% of larger SMEs (50–250 employees)
  • Businesses operating for more than 16 years are three times more likely to have no AI usage (33%) than newer firms operating for 1–5 years (11%).

3 March 2026 | Dublin – Irish small and medium-sized enterprises (SMEs) overwhelmingly believe artificial intelligence (AI) can benefit their business, yet most are still struggling to translate that opportunity into action, according to new research released today. 

The study, commissioned by Google in partnership with Amárach Research and based on a survey of 400 Irish SMEs, shows that while 80% believe AI can positively impact their business and 65% expect it to drive growth in 2026, adoption remains limited. 

The findings indicate a significant confidence and capability gap. The main barriers preventing greater AI adoption include fear of making mistakes (30%), lack of skills (27%) and cost (24%), with many business leaders unsure of where to start (16%). More than half (57%) believe they are behind competitors in adopting AI, while 50% are concerned their business could be left behind without it. 

The research also highlights that micro-businesses, longer established firms and non-exporters are most at risk of falling behind, underscoring the need for targeted, practical support that meet SMEs' varying needs. 

The research is being launched today at an event hosted by Google Ireland at The Foundry as part of Local Enterprise Week.  In partnership with the Local Enterprise Office (LEO) network, Google also announced the launch of AI Works for Ireland, a series of complimentary, face-to-face regional events aimed at equipping SMEs with practical AI skills for business. 

The series begins today in Dublin, followed by events in Galway (April 30th), Cork (14th May) and Monaghan (28th May). Each event will feature insights from Google AI experts on how SMEs can use AI to drive growth, creativity and efficiency, alongside dedicated AI workshops offering support for founders and business leaders.

As part of the initiative, Google and the Local Enterprise Office network are providing up to 10,000 AI scholarships to workers across Ireland. Delivered through Coursera, the Google AI Professional Certificate offers practical training across more than 20 real-world AI business use cases, from data analysis and content creation to customer communications. 

This research and initiative follow the release of the government’s National Digital and AI strategy, which includes key pillars to empower people, workers and businesses to develop cutting edge skills and fostering digital and AI literacy, alongside growing a digital innovative and competitive enterprise sector within Ireland.

Minister of State for Trade Promotion, Artificial Intelligence and Digital Transformation, Niamh Smyth, TD said: “AI has the potential to boost productivity and enhance competitiveness across Ireland’s SME Sector. As we advance the ambitions of the recently published National Digital and AI Strategy, a key priority of my department is to fast‑track enterprise adoption digital and AI technologies. Initiatives like this one, delivered in partnership with Google and the Local Enterprise Offices, are vital in ensuring that businesses of all sizes, in every region, have the skills and confidence they need to adopt AI at pace.”

Vanessa Hartley, Head of Google Ireland, said: “Irish SMEs are clear about the opportunity AI presents, but this research shows many are being held back by uncertainty rather than ambition. AI Works for Ireland is about closing that gap – providing practical, trusted support that helps businesses move from awareness to action, and from experimentation to real impact. At Google, we are committed to helping people and businesses across Ireland build the skills they need to succeed in an AI-powered economy. Through initiatives like this, we want to ensure SMEs have access to high-quality training, tools and expertise that empower them to grow, innovate and compete with confidence.”

Kieran Comerford, Chair of the Local Enterprise Offices, said: “Local Enterprise Week is all about helping businesses and entrepreneurs improve and showing them the resources available to them.  This new initiative with Google will bring accessible and hands on support in the area of AI which can benefit every small business.  In a business eco system full of AI noise they need trusted advice to get started and AI Works for Ireland will deliver that support locally, where it can make the greatest difference.”

Anne Lanigan, Divisional Manager Local Enterprise & Regions, Enterprise Ireland said:

“Empowering Irish companies of all sizes to adopt and deploy AI is a key objective of Enterprise Ireland’s strategy, and this is further endorsed by the Government’s updated National Digital & AI Strategy, Digital Ireland – Connecting our People, Securing our Future. We look forward to supporting the Local Enterprise Offices and Enterprise Europe Network in partnering with Google to deliver this important nationwide initiative to strengthen the digital capabilities of Irish companies.”

Gerard O’Neill, Chairman of Amárach Research, said: “What stands out in this research is the gap between belief and behaviour. Irish SMEs recognise the value of AI, yet many lack the confidence, skills or reassurance to embed it in their day-to-day operations. Addressing these human barriers will be just as important as the technology itself if Ireland is to fully realise the benefits of AI.”

Further information on AI Works for Ireland and how to register for upcoming events is available at goo.gle/aiworksireland To register for Google’s AI Professional Certificate please visit here. To apply for one of the 10,000 scholarships please contact your Local Enterprise Office.