Skills shortage emerges as biggest obstacle to AI ambitions
Irish organisations are rapidly increasing investment in artificial intelligence, but a growing shortage of specialist talent is threatening their ability to turn those investments into results, according to new research from EY Ireland.
The professional services firm's fifth annual Tech Leaders Outlook Survey, which gathered responses from 150 chief technology officers (CTOs) and chief information officers (CIOs) across Ireland, found that while AI adoption has moved firmly into the mainstream, many organisations are struggling with the practical challenges of implementation.
More than four in five respondents (82%) said they are currently investing in AI, almost double the 44% recorded a year earlier.
However, 36% identified a shortage of skilled employees as the biggest barrier to delivering their technology agenda, up sharply from 24% in 2025.
The findings suggest that Irish businesses are entering a new phase of AI adoption, where the challenge is no longer whether to invest, but how to deploy the technology effectively at scale.
Ronan Walsh, Head of Technology Consulting at EY Ireland, said the debate around AI and employment often overlooks the reality facing technology leaders.
“While there has been much recent discussion on job displacement in Tech, our research finds that the single most significant barrier to Irish technology leaders executing their agendas right now is the shortage of skilled employees to implement new technologies or progress complex transformation programmes,” he said.
The survey also points to growing concerns around internal capability. Sixteen per cent of respondents cited insufficient internal capacity to drive change, compared with just 6% last year, while succession planning and talent development have become increasingly important priorities.
Despite fears that AI could reduce employment opportunities, most organisations do not expect significant workforce disruption.
Eighty-four per cent said AI adoption would have no impact on recruitment levels, while only 6% anticipated a reduction in hiring.
Businesses are primarily using AI to improve productivity and efficiency rather than reduce costs. Almost half of organisations have deployed AI-powered employee productivity tools, while others are using industry-specific applications, customer engagement platforms and data analytics solutions.
Most respondents reported already seeing measurable benefits from their investments.
Cybersecurity remains another major concern.
One-third of technology leaders identified cybersecurity as a key challenge, while nearly half said data leakage through generative AI tools represented their biggest cyber risk.
The research also highlights a cautious approach to transformation.
Just 4% of organisations described their strategy as aggressive enterprise-wide change, while the majority favour incremental or risk-managed transformation programmes.
Ronan Walsh, head of technology consulting at EY Ireland
Carol Murphy, Head of Markets at EY Ireland, said technology leaders are being forced to balance multiple priorities simultaneously.
“Businesses are operating in a more volatile and a faster paced world than ever before,” she said. “For tech leaders, that means attempting to keep pace with AI developments, safeguarding against cyber risk, and dealing with intense competition for talent — simultaneously, and at pace.”
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