The vast majority of Irish start-ups and tech companies are preparing to deploy artificial intelligence (AI), according to Ireland scale.
More than eight in 10 start-ups (82%) plan to use AI, and a similar proportion (83%) believe it will have a positive impact on their business, with half (49%) believing it will increase productivity and 17% believe it will have a positive impact on their business. % thinking that this will increase the market growth.
Our findings are very clear on the potential of AI: founders and CEOs of Irish tech start-ups and growing businesses are widely adopting AI,” said Martina FitzgeraldCEO of Scale Ireland.
“The vast majority of respondents are overwhelmingly positive about its potential and believe it will have a big impact on their business.”
In total, 340 founders and CEOs of start-ups responded to the survey which, beyond AI, also took into account their views on the economy, employment, taxation, support and state incentives, skills, diversity and climate.
Half (50.3%) of founders and CEOs surveyed consider financing to be their biggest challenge currently, a level similar to last year (51.6%), and 80% of respondents believe that it is difficult or very difficult to attract capital, unchanged from last year.
The cost of doing business was the second biggest challenge identified at 16.2%, up from 12% in 2023, but recruitment and retention challenges appear to have eased slightly year-on-year , going from 16.9% to 13.2%.
A further 80% believe the 5% increase in the R&D tax credit will have a positive impact, and 58% believe the reduction in the capital gains tax rate for angel investors will have an impact reasonably positive or significant.
Around two-thirds (65%) are unaware of new EU state aid rules that reduce help given to investors under the law. Employment Investment Incentive Program (EIIS)and 89% said they do not use the KEEP stock option plan to recruit/retain staff, compared to 83%.
Furthermore, 64% do not benefit from the R&D tax credit (66% in 2023) and 54% find it complicated (49%).
Regarding sustainability, 66.5% of founders and CEOs do not have a sustainability plan, the same as last year.
“The survey demonstrates the challenging investment environment facing start-ups and growing companies, as well as the need to attract more private investment into the sector,” said Brian CaulfieldChairman of Scale Ireland.
“It also highlights the complexity of many public supports, which is why this year’s consultation by the Department of Finance to simplify these schemes is welcome.”
Currently, there are over 2,200 start-ups and local businesses employing over 52,000 people in Ireland. Scale Ireland said that for every job created by a start-up, five additional jobs are created in the wider economy.
The survey comes ahead of Scale Ireland’s third regional start-up summit on Thursday 22 February, which will be held at UL from 12pm to 3pm.
Ministers Simon Coveney and Dara Calleary will be at the event, supported by Google, the Irish Strategic Investment Fund, Enterprise Ireland, Atlantic Bridge, the University of Limerick and the RDI Hub in Killorglin.
(Photo: Getty Images)
