Speech by Taoiseach Micheál Martin on the occasion of Microsoft Next40: Unlocking Ireland’s AI Opportunity

Opening remarks

Good morning, everyone. It’s a great pleasure to be here in Leopardstown today and to join you all in this celebration.

Déanaim comhghairdeas libh ar ócáid mhór seo agus sibh ag ceiliúradh 40 bliain in Éirinn i mbliana. Ba mhaith liom buíochas a ghabháil le gach aon duine a chabhraigh chun an t-imeacht iontach seo a eagrú.

In particular, I would like to thank James O’Connor and Ciarán Conlon for the invitation.

This 40th anniversary celebration marks another significant milestone in the Ireland-Microsoft relationship. Indeed, it is valued partnerships such as this one, supported by mutual investments in talent, creativity, and innovation nurtured over four decades, that has enabled Ireland to emerge as a digital leader at the heart of Europe, and globally.

Digital and AI

The pace of innovation and change in digital technologies over the course of our forty-year partnership has meant that while long-term investments and strategic direction remain critical, it is also increasingly important to be agile, flexible and responsive.

This is as true for Microsoft, as it is for Ireland, and our Programme for Government explicitly recognises the importance of the digital economy, and especially the role and potential of AI.

I think it’s clear that we are currently in a period of unprecedented digital innovation, this time driven by AI and the myriad opportunities it brings.

That is why we are currently refreshing our National Digital and AI Strategy to ensure we accelerate and maximise the return from the digital and AI revolutions, delivering effective, modern public services, and continued economic growth, to the benefit of all of society.

The updated Strategy, to be finalised by the end of this year, will set out our ambition and vision to 2030 for Ireland to remain a digital leader in an increasingly competitive global environment.

It will include a number of priority targets to drive effective adoption of Digital and AI across the economy and society over the years ahead:

• We will enhance how we deliver our digital public services;
• We will support enterprise to accelerate their use of digital technologies, and benefit from resulting productivity gains;
• We will ensure our digital infrastructure is future-proofed, secure and resilient; and
• We will ensure our skills and literacy programmes support everyone, in the labour force and society in general, to thrive – safely - in a digital society.

AI

AI will be a priority focus throughout the Strategy.

We are focused on boosting the productivity and competitiveness of Irish enterprise by fast-tracking the adoption of AI tools.

We are enhancing Ireland’s advanced computing capabilities, including through an Irish AI Factory Antenna, which will provide Irish startups, SMEs and public bodies with access to state-of-the-art computing and AI resources.

In addition, we are strongly focused on addressing broader infrastructure deficits and associated competitiveness issues, including through implementation of our Action Plan on Competitiveness and Productivity and delivery of the updated National Development Plan, including, crucially, billions of Euro of investment into our energy grid and resilience.

As Taoiseach, I am very focused on driving forward our indigenous renewable energy sector and have established a Climate Investment Clearing House to ensure a focus on delivery, particularly in the area of offshore wind.

Preparing for today, I reviewed the most recent Skills Insights Note, ‘How AI is transforming the Irish Labour Market’, produced by our Expert Group on Future Skills Needs.

It is very encouraging, and I took away three key findings.

Firstly, we are seeing rapid AI adoption in the country, with AI use doubling among Irish enterprises between 2023 and 2024. 15% of enterprises are using AI, well ahead of most EU peers.

The SME sector is showing particularly strong momentum – forthcoming OECD research places Ireland 3rd among surveyed countries for SME generative AI usage (a third of SMEs).

Next, it highlighted Ireland’s strong digital and ICT skills base. Ireland ranks 3rd in the EU for digital skills, with almost three-quarters of individuals at basic-or-above competence, compared to an EU average of 56%.

We also have the highest per capita STEM graduate rate in the EU.

Finally and importantly, our supply of AI talent is expanding. Irish universities are rapidly scaling AI-related programmes, with more than 1,500 master’s graduates and 600-700 PhDs now being produced annually. This, along with a strong inward talent flow, has undoubtedly helped drive our ranking as 4th in Europe and 5th globally on LinkedIn’s AI Talent Index.

Of course, we need to stay focused and keep at it, and Ireland’s reformed National Skills Council will work to provide the Government with independent and strategic advice to adapt and evolve our policies quickly and in tune with fast-shifting skills requirements.

Inclusion and Trust

Linked to this is the importance of digital inclusion, to ensure all groups in society can thrive in a digital society, and of course, this benefits business as well. This is why the Government recently launched the Charter for Digital Inclusion, a commitment to ensuring everyone benefits from digital progress.

Of course, none of this is new to Microsoft, who has a strong track record of engaging with local communities.

This includes the area of skills, though the Dreamspace initiatives, which provide immersive, research-based STEM experiences for students, teachers and communities, enhancing STEM skills alongside wider critical skills such as empathy, creativity, ethical decision making and collaboration.

We are conscious that trust is the cornerstone of successful AI adoption. Citizens and businesses need confidence that AI systems are safe, fair, and accountable. That’s why Ireland is committed to effective implementation of the EU AI Act, a framework that balances innovation with proportionate safeguards.

We are establishing a new AI Office of Ireland, as part of our approach to the EU AI Act, and to promote ethical and human-centric AI innovation.

The AI Office will also host our National AI regulatory sandbox to support businesses and others to navigate the AI Act requirements while driving innovation.

EU and Digital Regulation

The Government is deeply committed to Ireland’s important role in enforcing digital regulation and to making Ireland an EU Centre of Excellence and digital regulatory hub, and this new AI Office will play a key role in our regulatory ambitions, which are centered around ensuring a balanced approach to digital regulation that supports competitiveness and innovation.

It is critical that we get the balance right in Europe between stimulating innovation and regulation, to ensure the EU is open for innovation and for AI business.

We welcome the Commission’s digital simplification package published last week. The proposals are a first step and an important element of the overall approach to improving competitiveness at an EU level, in line with the Draghi Report.

Ireland has strongly encouraged an ambitious approach in this, which supports the EU’s strategic positioning as the location of choice for trustworthy digital innovation.

We will continue to engage closely and work with like-minded Member States through the D9+ Group, to advocate for a dynamic, ambitious and risk-based approach.

By reducing barriers to investment and innovation, balanced with clear and predictable protections for citizens, we can unlock significant growth opportunities.

Closing remarks

From 1 July next year, the Government will assume the Presidency of the Council of the European Union. This is a key moment for Ireland to demonstrate leadership.

During our Presidency, we will host an AI and Digital Summit in October 2026; this will be an opportunity to showcase Ireland as a location of choice for responsible AI and digital startups and a global hub for applied AI Innovation.

Rinneamar cinnte go bhfuil creat beartais láidir againn chun tacaíocht a thabhairt dár n-uaillmhianta digiteacha. Gabhaim buíochas libh arís as an deis seo labhairt libh.

Our long-standing partnership with Microsoft is one we value deeply – indeed, it is this spirit of collaboration which will be key to a thriving, innovation-driven economy, one where AI boosts productivity and competitiveness, creates high-quality jobs, and attracts global investment.

If we remain bold in our ambition, I truly believe we can shape an Ireland where tech and AI are not only powerful in their capabilities, but principled in their purpose.

Congratulations again on 40 years of Microsoft in Ireland – we look forward to your next 40!

Go raibh maith agaibh go léir.

Ends.