Ireland’s start-up ecosystem is setting the pace for AI adoption across Europe.
36% of Irish start-ups are embedding artificial intelligence (AI) at the core of their business models compared to the European average of 29%, according to a new report released by AWS (Amazon Web Services).
The “Unlocking Ireland’s AI Potential 2025” report, which surveyed 1,000 Irish businesses, reveals that 63% of Irish start-ups have adopted AI in some form, significantly outperforming their European counterparts.
The impact has been substantial, with 94% of Irish businesses reporting revenue increases directly attributed to AI implementation, averaging a 36% growth.
“The data in this report aligns closely with our observations in the field – Irish start-ups are demonstrating a strong commitment to integrating emerging technologies,” said Niamh Gallagher, AWS Country Lead for Ireland.
“Many of these companies clearly recognise that AI is becoming increasingly important for maintaining competitiveness, attracting investment, and pursuing global expansion opportunities.”
Government and industry alignment
The findings were presented to Niamh Smyth, Minister for the Department of Enterprise, Trade and Employment with special responsibility for Trade Promotion, Artificial Intelligence and Digital Transformation, during the AWS Gen AI Loft Dublin tour.
“These findings make it clear that start-ups are central to Ireland’s digital future,” Minister Smyth said. “They’re leveraging AI not only to grow, but to lead the transformation of entire industries—from safety tech to genomics and climate solutions.”
Across Ireland, businesses are integrating AI at an accelerating pace, with 45% now using AI, marking a 32% growth from 34% last year.
This growth outpaces the European average of 42% adoption with a 27% growth rate. Irish businesses have increased their AI investment by 25% year-on-year, exceeding the European average of 22%, with AI now comprising approximately 17% of their overall IT budgets.
Start-ups leading practical applications
Several Irish start-up founders shared how AI is already transforming their industries. Rena Maycock, founder of safety-focused tech company Chirp, explained: “This report validates our approach to keeping children safe online. Using GenAI to enhance our datasets has enabled us to detect and block harmful communications and offer real-time protection for children and families—something that simply wouldn’t be possible with conventional tech alone.”
Dorothy Creaven, Chief Operating Officer of Jentic, added: “At Jentic, we’re building AI-native infrastructure for the agent era, enabling AI agents to dynamically discover, load, and execute the exact tools they need, precisely when they need them. This report reinforces what we’re seeing every day: Ireland’s start-ups are not just adopting AI, they’re pushing the boundaries of how AI is applied at scale.”
Sean Mullaney, Founder & CEO of Seapoint, concurred: “The report reflects what we’re seeing on the ground. AI isn’t just enhancing finance tools—it’s fundamentally changing how start-ups manage money, make strategic decisions, and scale. It’s enabling us to build the intelligent financial home we always wished we had.”
The two-tier AI economy
Despite the positive trends, the report identifies a growing divide between start-ups and large enterprises in AI adoption. The research outlines three distinct stages of AI integration, revealing that large businesses are lagging behind more agile start-ups in advanced implementation:
- Stage 1: First Steps – Two-thirds (66%) of Irish businesses remain in the early stages, primarily using publicly available chatbots or basic AI tools for routine tasks. Notably, 83% of large enterprises are still at this most basic stage of AI integration.
- Stage 2: Transformation – The divide becomes pronounced at this level, with 25% of start-ups exploring deeper AI integration—more than triple the rate of large businesses (7%).
- Stage 3: Strategic Innovation – At the most advanced level, 26% of start-ups have integrated AI across operations, compared to only 8% of large businesses. Overall, 17% of businesses at this stage are building custom AI systems or apps tailored to their specific needs, with the same percentage reporting full AI integration across operations.
The report also highlights challenges, with 54% of Irish start-ups reporting that regulatory uncertainty has negatively impacted their decisions around AI adoption.
“This report highlights the remarkable pace of innovation in today’s start-up ecosystem,” said Tricia Troth, General Manager, Start-ups UK & Ireland at AWS.
“We’re seeing start-ups move beyond AI experimentation to implement practical, strategic applications. The data shows how founders are increasingly focused on integrating AI into their long-term growth and scaling strategies.”
Main image at top: At the AWS Gen AI Loft Dublin, Niamh Gallagher, AWS Country Lead for Ireland presented, Niamh Smyth, Minister for the Department of Enterprise, Trade and Employment with special responsibility for Trade Promotion, Artificial Intelligence and Digital Transformation, the “Unlocking Ireland’s AI Potential 2025” report showing how Irish start-ups outpace European counterparts in AI integration and innovation
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