Implications of the EU AI Act for Irish businesses

Brian Ó hOisín

Global Engagement Manager, The Analytics Institute

The European Union’s landmark Artificial Intelligence Act (AI Act), formally adopted in 2024, is set to reshape how businesses across Europe, including Ireland, develop and deploy AI.

As the world’s first comprehensive legal framework for artificial intelligence, the Act introduces binding rules designed to ensure AI systems are safe, transparent and aligned with European values. For Irish firms, the implications are significant, presenting both challenges and opportunities.

Mitigating AI systems risk

At its core, the AI Act introduces a risk-based classification system. AI applications deemed ‘unacceptable risk,’ such as social scoring or manipulative systems, will be banned outright. ‘High-risk’ systems, which include AI used in areas such as recruitment, finance, healthcare and critical infrastructure, will face stringent obligations around testing, transparency, human oversight and cybersecurity. Businesses offering lower-risk or minimal-risk AI tools will be subject to lighter requirements, though transparency duties will still apply in certain cases, for example, with generative AI.

Ultimately, the AI Act represents more
than regulation; it is an attempt to
shape the future of AI responsibly.

What compliance means for small firms

For Irish businesses, compliance will mean adapting governance structures, investing in technical and legal expertise, and documenting how AI systems are trained and deployed. This could prove burdensome for smaller firms and startups, where resources are limited. The Analytics Institute has warned of increased costs and administrative pressure in some cases. However, by adopting responsible AI practices early, Irish companies can enhance consumer trust and gain a competitive edge in regulated markets.

Ireland, as a hub for global technology firms and a growing base of indigenous AI startups, is uniquely exposed to the Act’s reach. Multinationals with European headquarters in Dublin will need to align global AI strategies with EU rules, while local businesses may find compliance opens doors to new partnerships and funding opportunities. Government support and clear national guidance will be vital in helping firms transition smoothly.

Enabling responsible AI deployment

Ultimately, the AI Act represents more than regulation; it is an attempt to shape the future of AI responsibly. For Irish businesses, the challenge now is to balance compliance with innovation, ensuring they remain competitive while meeting the EU’s high standards of safety and ethics.