European companies are rapidly adopting artificial intelligence (AI). According to Eurostat, an average of 13.5% of businesses in EU countries use AI. Ireland ranks 12th in AI adoption, two places above the average.
However, the rapid integration of AI also impacts the labour market. A survey of more than 500 companies reveals that 23% of businesses expect to need fewer employees due to AI. Additionally, 30% of employers indicate that their employees will need new skills to work effectively with AI.
Ireland and AI adoption
Eurostat’s analysis shows that Denmark and Sweden have the highest AI adoption rates. At the bottom of the list are Romania (3.1%), Poland (5.9%), and Bulgaria (6.5%), while the European average stands at 13.5%. Ireland, at 14.9%, is two places above this average. There is significant increase compared to 2023, however, when only 8.01% of Irish companies reported using AI.
Eurostat’s data also reveals that the larger the company, the faster AI is being integrated into business processes. Among smaller enterprises, AI adoption increased by 10 percentage points, among medium-sized companies by nearly 13 percentage points, and among large companies by as much as 18 percentage points.
AI is growing across all sectors
While AI is most commonly used in the services sector (27.4% of companies), its adoption is also growing significantly in manufacturing (+52%) and in construction (+110%).
The most frequently used AI applications include:
- Text analysis (15.1%)
- Natural language processing (12.7%)
- AI-based process automation (10.3%)
This indicates that companies primarily use AI for reviewing and improving contentand automating administrative processes to improve business efficiency.
Impact on the employment market and recruitment plans
The rise of AI also raises questions about its impact on employment. The Acerta Consult survey shows that 23% of companies expect to need fewer employees due to AI. However, it’s not all bad news as 10% of companies anticipate that they will needi more employees.
30% of companies do not expect changes in workforce size but do foresee a need for new skills among employees.
The data also shows that 9 out of 10 companies allow the use of AI. However, 7 out of 10 employees feel there are insufficient guidelines or information on the matter.
With the new AI regulation, which has been in effect since August 1, 2024, companies must now adhere to clear rules. This regulation emphasises the importance of transparency, safety, and ethical AI use.
“AI is often still being experimented with, without official guidelines or communication within companies. However, there are security, privacy, and legal risks to consider, making it unwise to experiment freely with AI applications that generate (deepfake) videos or artificial images. AI should not be an end in itself but a means to accelerate business processes or simplify tasks. “ says Ellen Van Grunderbeek, innovation expert at Acerta Consult, a Belgian HR specialist.
The recommendation is that companies should “carefully choose which AI applications are useful and add real value at the right time. The success of AI integration in companies ultimately depends on a clear and transparent AI policy”.
About the research
The analysis is based on the latest Eurostat data and also on the annual Acerta Consult Survey, conducted by Indiville and Bpact among 500 Belgian employers and 2,700 employees. This survey was conducted from December 17, 2024, to January 15, 2025.
