The Irish SMB Landscape in 2025 – Embracing Digital Opportunities
As of August 2025, Irish SMBs (small and medium businesses) remain the backbone of Ireland’s economy, comprising over 99% of active enterprises and delivering more than two-thirds of private sector employment.1 SME employment rose 2.8% in 2024 and is set to climb by another 3.2% this year. Encouragingly, 72% of Irish SMBs report a positive business outlook, with almost 9 in 10 optimistic about sales and hiring.
Yet this confidence comes with challenges. Rising input, energy, and wage costs are squeezing margins. Talent shortages—particularly in digital and customer service—are ongoing. At the same time, Irish customers expect instant, personalised support across multiple digital channels. Manual processes, slow response times, and administrative bottlenecks are familiar pain points, often resulting in lost sales and diminished competitiveness.
To address these challenges, a growing number of Irish SMBs are investing in AI automation solutions. Over one third adopted some form of AI technology in 2024-2025, and a further 27% plan to adopt AI this year, prioritising customer service, lead generation, and operational efficiency. The message is clear: AI automation in Ireland is now crucial for SMB growth and resilience.