The 2025 Irish SME Landscape: Challenges & AI Opportunities
As of August 2025, Irish SMEs continue to drive Ireland’s economy, accounting for over 75% of employment and 66% of total earnings (BPFI Monitor, 2025). Despite recent inflation and ongoing digital skills shortages, Irish small and medium businesses are showing renewed confidence this year. Following a challenging 2023, SME employment leapt 2.8% in 2024 and is projected to rise another 3.2% in 2025, with digital-first sectors leading the recovery—powered by fresh investment in automation and AI.
But everyday challenges persist for Irish SMBs:
- Rising costs due to energy and supply price increases
- Short supply of digital talent, driving up recruitment expenses
- Complex regulatory environment, especially for cross-border and compliance-driven firms
- Tighter lending habits and access to finance issues
Optimism prevails: 92% of Irish SME owners plan to invest in business improvements in 2025—over 60% are actively managing costs, with many turning to business automation and AI to improve efficiency and close skills gaps. Irish businesses now see digital transformation and AI automation as crucial, not optional.
The key question: How can AI automation benefit Irish SMEs right now?