Amid AI acceleration and investment headwinds, Ireland’s Tech, Media and Telecoms (TMT) sector continues to scale, says head of TMT at Bank of Ireland Paul Swift.
Ireland’s Technology, Media and Telecoms (TMT) sector has demonstrated notable resilience in the first half of 2025, despite geopolitical uncertainty and a sharp decline in venture capital investment.
According to Bank of Ireland’s latest sectoral outlook, businesses are increasingly focused on sustainable growth, cost control and strategic deployment of artificial intelligence (AI) technologies.
Q – AI is not magic. It’s a tool, and similar to any tool, it has limitations
“Despite geopolitical uncertainty, the TMT sector remains resilient. Businesses continue to explore the promise of artificial intelligence which is continuing to democratise industries and job roles,” said Paul Swift, head of TMT at Bank of Ireland.
Technology: AI adoption and talent shifts
AI adoption continues to dominate the technology narrative. While 98% of business leaders surveyed by PwC have initiated their AI journey, only 6% have deployed it at scale. Accenture and Trinity College Dublin reported similarly cautious integration, with most organisations relying on off-the-shelf tools such as Microsoft Co-Pilot and Salesforce Einstein.
The report notes a strategic shift in hiring practices, with graduate recruitment declining as companies automate routine tasks. “This could be the start of the shift towards AI-driven operations,” Swift says, raising questions about the future of mid-level roles and talent pipelines.
Vibe coding, a conversational approach to software development, is gaining traction. It allows users to instruct AI in plain language to generate code, lowering barriers to entry and enabling the rise of the citizen developer. While concerns remain around code quality and security, investor interest is strong. Swedish start-up Lovable, founded in 2023, reportedly doubled its valuation to $4 billion within weeks.
Media: Digital video advertising surges
Ireland’s Entertainment and Media sector is forecast to grow at 3.3% annually to 2029, driven by digital video advertising (DVA). According to PwC, internet advertising revenue is expected to reach €1.8 billion, with video advertising growing at 12.6% CAGR. Businesses across sectors are increasingly using DVA to promote products and services, with mobile expected to account for over 80% of ad spend by 2030.
Traditional media continues to decline, with print newspaper and magazine advertising down 13.3% and 11.6% respectively. Screen Ireland reported a €1 billion gross value add from the audiovisual sector, supported by Section 481 tax relief, which has attracted over 850 productions since 2016.
Telecoms: Connectivity expands, scam protection tightens
ComReg data shows gigabit broadband is now available at 88% of Irish premises, with 5G subscriptions rising 26% year-on-year to 2.16 million. Satellite broadband providers such as Starlink and Amazon’s Kuiper have applied to establish base stations in rural Ireland, aiming to improve connectivity in underserved areas.
From October 2025, ComReg’s SMS Sender ID registry will block unregistered sender IDs to combat scam texts. The initiative is expected to deliver a net financial benefit of €1.2 billion by 2030.
Investment Trends: M&A activity and VC decline
M&A activity in the TMT sector accounted for 22% of all deals in H1 2025, with standout transactions including Tines’ €121 million funding round led by SoftBank and Goldman Sachs. Other deals included Wolters Kluwer’s acquisition of Shine Analytics and TA Associates’ purchase of Clanwilliam Group’s healthtech business.
Venture capital funding into Irish SMEs fell to a ten-year low in Q2, dropping to €112.6 million from €494 million in the same period last year. The decline is attributed to a pullback by international investors, prompting calls from the Irish Venture Capital Association to strengthen domestic funding capacity.
Outlook: AI, Agentic Systems and Ethical Governance
Looking ahead, the report highlights the growing influence of Agentic AI, which enables autonomous decision-making and task execution. While the technology promises efficiency gains, Bank of Ireland cautions against overreliance.
“AI is not magic. It’s a tool, and similar to any tool, it has limitations,” Swift notes, citing concerns around reproducibility, explainability and data governance. Businesses are urged to adopt responsible frameworks to ensure transparency and fairness in AI deployment.
As GenAI and Agentic AI become more embedded in business operations, the sector is expected to undergo further transformation, with implications for workforce development, customer experience and digital infrastructure.
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