The findings came with the caveat that high costs are still a barrier to innovation for many Irish businesses.
The Innovation Index Pulse Survey has found that the majority of Irish businesses engaged in research and innovation have either adopted or plan to integrate a clear artificial intelligence (AI) strategy within the next year.
However, it also found that high costs remain a barrier to innovation.
The latest survey sampled more than 500 companies engaged in the fields of research and innovation.
Nearly two-thirds (65pc) of Irish businesses plan to increase research, development and innovation (RDI) activities or employment. This is down 12pc percent from 77pc, compared to when a similar question that was asked in the main Ireland’s Innovation Index 2024 survey back in May.
Some 39pc of organisations claim to have adopted or are currently adopting AI with a clear strategy. Nearly one-third (32pc) plan to integrate AI within the next 6 to 12 months, while 3 in 10 have little or no AI strategy and no current plans to adopt AI.
More than half (51pc) of the companies surveyed are currently involved in the research and development (R&D) of green and sustainable technologies, with most of these businesses (95pc) planning to further invest in the coming year.
Only 2pc percent of firms not currently involved in R&D of green technologies plan to do so soon.
Barriers to implementation
62pc of businesses surveyed perceive lack of budget and high costs to be a primary barrier to innovation.
According to the survey, 43pc of the companies identified time constraints and one-third (34pc) cited difficultly recruiting talent as significant challenges.
In addition, R&D tax credit claims and grant applications remain an issue for these companies, with 80pc of respondents reporting that the administrative burden has remained the same, and 14pc reporting that it has worsened. Meanwhile, only 6pc saw an improvement over the past six months.
The latest survey was conducted by innovation network group IRDG and professional services firm KPMG over the course of October and November.
Commenting on the findings, Ken Hardy, the head of KPMG’s RDI Incentives Practice, said that investment in RDI is “critical” for both long-term economic growth and job creation across Ireland.
Hardy pointed to the finding that 65pc of businesses plan to increase RDI spending, which he said was driven by many factors, including the recent increase in the rate of the R&D tax credit.
He added that issues such as the high cost of innovation have led to concerns about “decreasing confidence in the RDI environment”.
In order to address this issue, Hardy suggested: “We need to continue to improve the attractiveness of investing in RDI to maintain Ireland’s competitive position.”
These sentiments were echoed by Dermot Casey, the CEO of IRDG, who said: “We need immediate action to break down these barriers. It’s time to radically improve Ireland’s RDI environment and claim our position as a global innovation leader.”
A report published earlier this week by professional services company Accenture found that GenAI could have huge benefits for Ireland in the near future. According to the report, GenAI has the potential to contribute up to €148bn to Ireland’s annual gross domestic product (GDP) by 2038, representing a 22pc increase over the baseline forecast.
And last week, it was announced that Irish small and medium-sized enterprises (SMEs) based could apply for an AI solutions programme led by Galvia AI. This programme is designed to help SMEs across Ireland integrate AI solutions into their business operations.
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