Raising our AI game could reap huge rewards for Irish business

Whether you are excited by it or frightened of it, artificial intelligence (AI) is well on its way to transforming how we do business. Many US multinationals based in Ireland are engaged in AI research which will help improve insights into what these changes may look like. However, recent survey found that 69 per cent of AmCham members have been experiencing a skills gap in Ireland, with 40 per cent experiencing a skills gap in digital or AI-related fields. Experts say Ireland must quickly build momentum in research and development in this critical area, while seeking to address the skills gap as a priority.

For years the perception of artificial intelligence was that it was “futuristic” but now the future is here and AI is already in use in many larger organisations, says Barry Scannell, consultant in the technology department at William Fry.

“And if not already deployed across the organisation, those systems are in development. We have seen what a number of multinationals are working on in terms of AI and the direction of travel is clearly ubiquitous AI deployment,” says Scannell.

Bigger organisations “have the deeper pockets”, allowing them to buy into these systems during the early development stages and manage risk more comfortably, he points out.

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AI was previously trained on task-specific data to perform a narrow range of functions but now large-scale, adaptable AI models, known as foundation models, have entered popular use – ChatGPT being a notable example.

“The future is likely going to have myriad foundation models incredibly fine tuned to very specific tasks which will be deployed in every single business, in addition to the major foundation models that the likes of OpenAI, Meta and Google are developing,” says Scannell.

That said, we remain in the “embryonic” stages of this technology, which means it may not always be deployed where it is most useful, Scannell explains; many companies are still figuring out use cases and how AI could help with their business.

“The risk with AI is that, as it’s such a buzz word, boards wielding an AI hammer may see every process as an AI nail,” he adds.

Having an appropriate AI framework in place is the best position from which to start, Scannell advises.

“This means assessing the technology, its intended use and possible consequences of use [and] everything from fundamental rights to data protection to liability,” he says. “Part of this process is ensuring that existing legal frameworks such as contracts, policies, etc are updated to accommodate this new technology. The AI Act is also looming large on the horizon and companies need to start addressing potential obligations now as they may not have enough time when the legislation comes into force.”

With the EU’s Artificial Intelligence Act imminent, Scannell says there is “absolutely no reason” why Ireland should not become the global hub for AI regulations.

“Ireland has the potential to establish itself as a global hub and centre of excellence for the next AI-powered evolution but that potential may go unrealised if we fail to develop the skills required to compete,” says Sinead Keogh, Director of Biopharmachem Ireland (BPCI), Ibec.

Ibec’s own research has found that more than half of companies within the health-technology sectors have identified AI as a current and future skills need.

Keogh points to the potentially transformative impact that AI will have in the life-sciences sector. US-headquartered companies such as Amgen, Pfizer, MSD, Janssen and Eli Lilly are just a few organisations exploring AI for drug discovery, clinical trials, diagnosing diseases and manufacturing.

“Practically, AI is augmenting human productivity, improving decision making, reducing manual groundwork, automating processes and freeing up time for more valuable work,” she says.

Having the talent to navigate the rapidly evolving regulatory environment will be critical, she adds. “Skills across the value chain will be incredibly important, especially an understanding of the complex regulatory and reimbursement environment within the EU and US, in particular, for digital solutions,” says Keogh.

Goldman Sachs estimates that AI could increase productivity by 1.5 per cent annually and S&P profits by 30 per cent or more over the next 10 years. “With that kind of prize on offer it’s imperative that Ireland is positioned as a leader in these skills. We have great foundations in place that provide the opportunity to realise this goal,” says Kieran Towey, applied intelligence lead at KPMG.

Results from the KPMG CEO Outlook 2023 highlighted how global CEOs are making generative AI a top investment priority; 70 per cent are investing heavily in generative AI as their competitive edge for the future, with most (52 per cent) expecting to see a return on their investment in three to five years.

“Virtually all organisations are carrying out internal research or working with external partners, including the university sector, through organisations like CeADAR, Insight and SFI’s Machine Learning Labs, and this will continue,” says Towey.

But, again, when it came to the barriers to organisational success caused by generative AI, CEOs surveyed by KPMG as part of CEO Outlook 2023 cited a lack of technical capability and skills to implement it.

“In fact, a lack of technical capability and skills to implement AI was flagged as an issue by exactly half of CEOs worldwide, and 60 per cent of Irish CEOs,” he says.

Yet Towey points out that there has been “an explosion” in third-level courses devoted to data, analytics and AI, which are attracting both domestic and international students. “Ireland is also an attractive destination from Europe and beyond for those with these hot skills and, for our size, we are very much punching above our weight,” he adds.

However, with such nascent and dynamic technology, organisations may currently lack the more senior visionary resources to effectively design and deliver solutions.

“I expect to see organisations look to concentrate their limited resources into a critical mass of capability, working in a hybrid environment and coming together in person when required,” says Towey.