Evidence that SMEs accelerate AI adoption amid governance gaps and security concerns.
A significant shift in artificial intelligence adoption is underway among Ireland’s small and medium-sized businesses, with 80% expected to engage with AI tools within the next year.
This is according to AI Horizons: Insights into AI Adoption, Security and Risk in Irish SMEs, a new report published by Viatel Technology Group in partnership with Amárach Research.
The study, based on responses from 150 Irish business decision-makers, reveals that while nearly one-third of SMEs have yet to adopt AI, the landscape is changing rapidly. The proportion of businesses using fully integrated AI systems is projected to more than double, rising from 7% to 17% over the next 12 months.
Barriers to successful adoption
Lisa Hunt, Microsoft Practice Director at Viatel Technology Group, said the findings reflect a growing urgency among Irish firms to harness AI’s potential while managing risk.
“This research offers a timely and comprehensive exploration of the current AI landscape, uniquely tailored to the Irish context,” Hunt said. “Companies with up to 500 employees understand the need to unlock AI’s full potential but cannot afford failed experiments. Trusted external support is critical to ensure every organisation is equipped to compete.”
Despite the enthusiasm, the report highlights widespread barriers to adoption. Ninety-five percent of respondents cited challenges, with security concerns (38%), lack of technical expertise (35%), and absence of a formal AI policy (33%) topping the list.
While 98% of businesses already using AI rate it as useful, only 5% have a detailed roadmap that includes timelines and budgets. A further 87% lack any formal AI policy, and 35% of respondents admitted they do not know where to begin with AI governance.
James Finglas, managing director of Digital Services at Viatel Technology Group, said the gap between interest and execution remains a critical issue.
“There’s a lot of noise around AI, and a lot of people are talking about it,” Finglas said. “Unfortunately, very few are actually doing it. At Viatel, we’re actively partnering with public and private sector organisations on their AI frameworks – getting the policies, people, and processes in place to roll out AI, deliver return on investment, and contribute to business goals.”
The report underscores a growing awareness among Irish SMEs of the competitive risks of AI inaction. While the majority recognise the strategic importance of AI, many remain cautious due to the uncertain return on investment and potential financial losses from failed projects. The findings suggest that structured planning, governance, and external expertise will be essential as Irish businesses move from AI curiosity to strategic deployment.
Top image: Lisa Hunt, Microsoft Practice Director, and James Finglas, Managing Director of Digital Services, Viatel Technology Group
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