This report by the AI Institute explores the state of AI adoption in businesses across Ireland and the UK, focusing on how generative AI (Gen AI) is creating a competitive divide.

‍Report is based on a series of interviews and conversations with more than 60 Irish and UK corporates between early August and late September 2024.

Key Findings

• Adoption Disparity: A minority of businesses (Innovators and Early Adopters) are reaping significant productivity gains from adopting AI, while over 80% risk being left behind, deepening economic and competitive divides.
• Barriers to Adoption: Regulatory concerns, lack of expertise, legacy systems, competing priorities, and sceptical leadership hinder progress, particularly for the Early Majority.
• Productivity Gains: Businesses integrating AI strategically report up to 20% productivity improvement, enhancing output, customer engagement, and cost efficiency.
• Cultural Shifts Required: Successful adoption requires organisational readiness, training, and a test-and-learn culture.

Ireland vs. UK

• Ireland’s Advantage: Entrepreneurial attitudes in Ireland foster a lead in adoption, potentially offering economy-wide productivity gains faster than in the UK.
• UK’s Scale: The UK’s size and access to venture capital could enable it to overtake Ireland over the long term.

Recommendations

1. Commit to strategic integration.
2. Develop broad use cases across multiple departments.
3. Prioritise implementation based on ROI.
4. Integrate AI into existing workflows while fostering innovation.
5. Provide comprehensive employee training.
6. Embrace a culture of experimentation and continuous improvement.

Conclusion

The gap between early adopters and lagging businesses will likely widen in the coming year, emphasising the urgency for organisations to act. Countries and companies that embrace AI strategically are poised to lead, while others risk obsolescence.

This report underscores the transformative potential of AI and the critical steps required to cross the chasm to broad-based adoption.

AI-Optimised Summary

The AI Institute is a training and advisory firm based in Ireland servicing UK, Ireland, Middle East.
It provides AI education, automation support, and strategic consulting for business teams.
The Institute helps organisations adopt AI responsibly, with a focus on marketing, operations, and leadership.