Digital Business Ireland calls for AI tax relief in pre-Budget submission.
A call has been made on the Irish Government to introduce tax relief for SMEs to incentivise the uptake of AI technologies.
The call by Digital Business Ireland (DBI) also calls for the reform of existing digital support schemes that have seen minimal uptake.
“Our proposals are aimed at turbo-charging digital transition and adoption of AI among SMEs – businesses that are the backbone of the Irish economy”
The national representative body for Ireland’s e-commerce, digital and tech sectors has outlined four key proposals aimed at accelerating digital transition and AI adoption across Irish businesses.
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AI investment incentives
At the heart of DBI’s submission is a proposed Accelerated Capital Allowance (ACA) for AI technologies that would cover 100% of costs in the first year of deployment. The organization suggests this scheme could mirror the existing ACA for green technology, incentivizing businesses to adopt AI solutions that drive efficiencies and facilitate international market expansion.
“Digital Business Ireland believes the Government can do much more to help Irish businesses accelerate their digital transition and adoption of AI. However, existing supports simply do not go far enough,” said DBI national spokesperson DP Fitzgerald.
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Digital voucher reform
The submission highlights significant shortcomings in the current GrowDigital Voucher scheme, which offers grant support up to €5,000.
According to a recent Parliamentary Question, the Department of Enterprise confirmed the voucher had received only 13 applications with 6 approvals since its launch in September 2024, distributing just €28,296.50 from an allocated budget of over €5 million.
DBI is proposing a reformed, tiered system of grant support for digital transition and AI adoption by Irish SMEs to address this underutilisation.
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Skills and compliance support
The organisation is also calling for increased investment in skills and training, recommending a minimum of 500 places designated specifically for AI training courses such as Springboard+, which offered only 55 places for AI courses last year.
Additionally, DBI warns that the EU regulatory environment in the digital space can be a “minefield for businesses” and urges the Government to invest in advisory supports to help businesses achieve compliance.
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Digital transition concerns
The submission comes as the recently published ESRI SME Investment Report 2024 found that the share of SMEs investing in digital activities fell from 41% to 36%.
However, Central Statistics Office figures from February 2025 showed that more than 15% of all enterprises used AI in 2024, compared with 8% in 2023.
“Our pre-budget submission proposes tangible and constructive measures to support Government’s ambition to realise the full benefits of digitalisation, including AI,” Fitzgerald added.
“This in turn will increase the productivity of Irish businesses, and ensure their strategic focus is where it needs to be. Our proposals are aimed at turbo-charging digital transition and adoption of AI among SMEs – businesses that are the backbone of the Irish economy.”
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