Bridging the digital divide: AI as a lifeline for Irish SMEs

Guest post by Elisabeth Kant (she/her) Head of Data Science at SumUp

Following the AI summit in Paris earlier this year, Taoiseach Micheál Martin stated “we need to embrace the opportunities that AI offers – for our start-ups and businesses, our public services, and ultimately for our citizens, and their quality of life.…If we don’t, we risk losing out and forfeiting the enormous gains AI promises.” In an increasingly digital world, small and medium-sized enterprises face a pivotal moment: adapt to technological change or risk being left behind.

While innovation was once the domain of large corporations, advancements in digital tools like automation and artificial intelligence are future-proofing SMEs, should they choose to adopt them. That includes the sectors we don’t typically associate with cutting-edge innovation: your local salon, the family-run grocer or an independently run café.

AI is no longer a futuristic concept reserved for the few, it’s part of a broader wave of digital tools that businesses must embrace to stay competitive. We’ve already seen examples of how adopting new technologies such as AI can make or break businesses. When looking at the booming e-commerce sector, for example, the rise of personalised shopping experiences thanks to artificial intelligence has had a great impact on how retailers are bringing their goods to customers.

It is no secret that the popularity of online shopping has led to many businesses leaning on algorithms to present their customers a personalised shop window. Those that have failed to adapt the opportunities AI has created in the space not only lose out on making their offerings more attractive to consumers, but risk losing their business by relying on outdated technology. AI is the new frontier of digital transformation, and organisations that oppose it risk falling behind.

Ireland’s SMEs in the digital age

This digital transformation of SMEs in a plethora of other industries is currently being driven by tools that provide services like automation, AI, and cloud-based systems across Ireland. Once thought to be reserved for larger scale organisations, these technologies are now inexpensive, accessible, and for many, essential to the running of their business day to day.

SMEs are the backbone of the Irish economy, representing a third of the country’s GVA according to the CSO, and the advantages of embracing digital technologies mentioned above are endless, with some being able to be integrated almost immediately. You don’t have to be a tech company to benefit from technology – automation can deliver real value by taking repetitive tasks off the plate of any business. We’re increasingly seeing examples like lead qualification for small sales teams or appointment scheduling for local restaurants – freeing up time for business owners to focus on higher-level strategic work.

AI, although sometimes seen as removing the human element from processes and procedures, can in fact customise client interactions, improve the sales process, and enable teams to provide a more bespoke experience. Hairdressers for example can use AI scheduling tools to personalise reminders and rebooking prompts. These benefits are especially important for SMEs, which operate with limited resources and where customer care is paramount.

The rise of AI

According to a recent report conducted by Trinity College Dublin and Microsoft Ireland, AI use in Irish enterprises increased significantly from 49% in 2024 to 91% in 2025. Among the SMEs surveyed, just under 40% of respondents are actively utilising AI, with 10% having adopted an AI strategy. However, there’s a noticeable gap when looking at the AI usage in large multinational enterprises. Perhaps in order to gain a competitive edge in an ever-changing and evolving industry, following the example set by larger corporations could be beneficial, improving upon operational efficiency and customer service for example.

That being said, there are barriers SMEs face in the adoption of automation and AI software. Some SME founders and executives see a lack of technical skills as a significant impediment, with 62% naming it as their primary difficulty. Moreover, according to Skillnet Ireland’s Ireland’s Talent Landscape 2024 report, 65% of businesses indicated that their staff would require training for the digital transition, and 42% of large businesses specifically identified artificial intelligence as a key area for upskilling.

Artificial intelligence for all

Government and enterprise support is ramping up, but more may be needed. Initiatives such as Skillnet Ireland’s AI for Leaders programme is a vital step, helping SMEs gain confidence in emerging technologies. However, as noted above, for many it is a mindset issue. For SME’s faced with transitioning from legacy systems, the majority of today’s digital solutions are intended to be user-friendly and do not need substantial technical knowledge or in-house developers. Many platforms are plug-and-play, making them available to organisations that were previously unable to invest in complicated systems.

A recent example of this shift comes from Irish tech unicorn Tines, which revealed that more than two-thirds of its customers are already using AI features within its flagship platform –  despite the tools only launching in September. Perhaps this underscored the growing appetite for AI-led solutions among Irish businesses – and the competitive advantage they stand to gain when adoption is prioritised.

Embracing AI

For SMEs wondering where to begin, the good news is that adopting AI doesn’t require deep tech skills or big budgets. Start by identifying one or two repetitive tasks, like appointment scheduling, customer follow-ups, or basic admin, that take up valuable time. Look for simple tools that solve those problems: for example, AI chatbots, automated email responses, or online booking assistants. Many of these platforms are plug-and-play and offer free trials. Business owners can also join government-backed upskilling programmes, like Skillnet Ireland’s AI for Leaders, to build confidence and know-how. Taking small steps now can build the momentum needed for longer-term digital growth.

Adopting AI doesn’t have to be overwhelming—it’s about starting small and building confidence. The tools are more accessible than ever, and support is growing for SMEs ready to make the leap. What’s most important is mindset: seeing digital transformation not as a risk, but as an opportunity to work smarter, serve customers better, and stay competitive.

The success of Irish SMEs in the coming years will depend on their willingness to adapt. Those who embrace AI and other digital tools will be better positioned to thrive, while those who resist change risk being left behind. With AI expected to contribute €250 billion to Ireland’s GDP by 2035, now is the time for small businesses to claim their share of that future.

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