Nearly half of Irish employees believe AI will affect their roles, while employers focus on retention, pay and skills development amid a resilient jobs market. Just 3.6% of firms have used AI to replace a role.
Almost half of Irish workers believe artificial intelligence (AI) will affect or potentially replace their jobs in the years ahead.
However despite this, according to a new report from FRS Recruitment, there is a strengthening recruitment market in Ireland with a growing emphasis on employee retention among employers.
“While concerns about the long-term impact of AI on employment are increasing … the evidence suggests that its influence is currently being felt primarily through the automation of tasks rather than the replacement of entire roles”
The recruitment firm’s 2026 Employment Insights Report found that 45% of employees expect AI to negatively impact or replace their current role in the future. The figure has risen by 19 percentage points compared with last year, reflecting increasing awareness of how rapidly AI technology is being adopted across workplaces.
The research charts a significant shift in attitudes towards AI over the past five years, with workplace use evolving from experimentation to practical day-to-day application. FRS Recruitment found that many employees first began testing AI tools in 2024 before they became widely embedded in work processes during 2025.
Despite concerns among workers, the report suggests that widespread job displacement has yet to materialise.
Just 3.6% of organisations surveyed said they had used AI to replace an entire role within their business.
Retention focus
Almost two thirds (65%) of companies in Ireland have already commenced recruitment campaigns this year, representing an 11-point rise compared to the same time last year. A further 10% of companies say they intend to start hiring within the next three months.
The biggest stand out trend among employers so far in 2026 is the focus on retention. More than two-thirds (68%) of survey respondents said staff retention will be their number one priority in their company this year. Comparing this to 2023, employers were mainly seeking new staff. Today’s employer is less worried about filling vacancies than losing experienced staff representing a major strategic shift for HR.
On the employee side, priorities have shifted away from working from home policies to career opportunities over the last five years. Coming out of lockdown in 2023, conversations about hybrid and remote working dominated job interviews and were cited by 28% of workers as a reason to change jobs. In 2024, more employers began to introduce return-to-office policies and now in 2026, the debate is largely over. Today’s workforce accepts hybrid working as the normal model. Fully remote working continues to decline, accounting for just 13% of workers – down three percentage points year-on-year.
Salary expectations
One trend has remained dominant over the last 5 years even though the reasons may have changed; salary remains the dominant factor for workers when evaluating new opportunities with 83% of respondents identifying it as their top priority.
In 2023, career opportunities and progression were the other main priorities for workers. However, in 2026 all of the top factors affecting a worker’s choice were financially driven: the cost-of-living and financial security.
More than half of workers believe their current pay does not accurately reflect their responsibilities, while a majority expect to receive a salary increase over the coming year.
Additionally, workers increasingly believe that changing employer offers the greatest opportunity to improve earnings, reinforcing the competitive nature of the current labour market. Two-thirds (66%) said moving to a new employer is more likely to help them achieve the salary they want, compared with staying in their current organisation.
Emigration trend continues
The 2026 Employment Insights Report also reveals an interesting trend where the appetite among young people seeking to move abroad for work has dampened.
With the ongoing conflicts in the Middle East, only 8% of people said they would consider moving abroad for work – down from 12% the previous year. In particular, almost half (43%) of respondents said that the war in Iran has made it less likely that they will move to locations such as Dubai or Abu Dhabi in the future.
“Following a cautious approach to hiring throughout 2025, Irish employers have entered 2026 with more confidence,” said Colin Donnery, Group CEO of FRS Co-Op.
“Today’s jobs market has not returned to the frantic conditions of 2022. Instead, it has entered a healthier, more sustainable growth phase where employers are investing selectively rather than hiring at all costs.”
“Perhaps the most significant emerging trend identified in this year’s report is the growing adoption of AI technology in Irish workplaces. While concerns about the long-term impact of AI on employment are increasing among both employers and employees, the evidence suggests that its influence is currently being felt primarily through the automation of tasks rather than the replacement of entire roles.”
Lynne McCormack, general manager of FRS Recruitment, added: “Against a backdrop of continuing economic uncertainty, geopolitical instability, rising living costs and accelerating technological change, the findings of the 2026 Employment Insights Report reveal a labour market that remains resilient, while also highlighting significant shifts in recruitment, workforce priorities and employee behaviour.
“In this year’s report, we have also reflected and compared the results of our 5 previous surveys. Interestingly, employers’ attitudes have shifted substantially in recent years. In 2026, focus has been on staff retention, artificial intelligence, upskilling workers, salary reviews, wellbeing, and pay transparency – the majority of these topics were barely discussed five years ago. This showcases that Irish employers are becoming much more strategic about workforce management,” McCormack said.
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