Updates from Ibec CEO Danny McCoy

CEO Update: Latest economic analysis & insights shows growth of AI related investment

Friday, 17 July

The latest CEO Update to Ibec membership from Danny McCoy

I am pleased to share some analysis from our latest economic outlook, which provides key insights to support your workforce planning, while also shaping and informing much of our current advocacy priorities - including AI training, energy security, economic resilience, and navigating technological disruption. You can read the complete economic outlook through our hub here and via an Ibec Responds Podcast here.

In a recent opinion piece for the Business Post, Ibec President and AIB CEO Colin Hunt spoke about the critical balance required between Ireland's energy security and our economic competitiveness. Colin highlighted that while Ireland has seen significant momentum- with historic grid investments and expanding solar capacity- a substantial gap remains. Addressing this gap is not just a matter of meeting climate targets, it directly impacts future business investment, the cost of living, and job creation across the country. The private capital necessary to fund this transition is readily available, but to move projects forward, investors urgently require predictable regulation and significantly faster planning approvals.

Our Economic Outlook analysis forecasts domestic demand growth of 3.3% for 2026, with inflation predicted to land around 3.5% for the year. Despite significant global volatility, overall economic growth will be strongly supported by AI-related investment, increased investment in public infrastructure, and resilient consumer spending.

Not surprisingly, AI remains at the forefront of our latest analysis. Although we are currently at the foothills of understanding AI's full economic impact, early evidence demonstrates clear and significant effects on our competitive environment, investment, and trade figures. For instance, total trade in AI-related goods to and from Ireland is currently on track to double over five years, having already reached €56 billion annually. Furthermore, domestic investment in ICT equipment and software has surged to nearly €6 billion over the past 12 months, representing a 50% increase compared to last year and a doubling from two years ago.

While Ireland may not be at the forefront of developing new, foundational AI models, we have a massive opportunity to serve as a central node in AI-related supply chains. We must also demonstrate our workforce’s capacity to adopt these technologies in highly complex applications. This potential was highlighted in a recent Business Post interview with Sinead Keogh, Director of BioPharmaChem Ireland, who discussed AI's transformative potential in the Life Sciences sector as one example. To enable this, our economic success must be rooted in bold, purposeful decisions regarding AI training, including fully unlocking the National Training Fund, which remains at the forefront of much of engagement with Government.

Navigating this generational shift in skills requires precise market intelligence. As employers continue to operate in a complex environment shaped by evolving workforce expectations, skills shortages, cost pressures, and growing competition for talent, access to reliable data has never been more vital.

Based on input from hundreds of senior HR professionals, Ibec’s Talent, Trends and Pay Survey 2026 provides organisations with a unique opportunity to benchmark people strategies against peers and contribute to one of Ireland's most respected sources of labour market insight. Your company's participation through your HR Lead ensures that the experiences and perspectives of Irish employers are accurately reflected in our analysis. To take part and receive the full results, please contact our research partner at sinead.osullivan@amarach.com.

Thank you in advance for your engagement.

Best regards,

Danny McCoy

CEO, Ibec