AI Revolution Threatens Irish Economy with High-End Job Losses, Report Warns
A new study by the ESRI and the Department of Finance warns of major labour market change in Ireland. It finds up to 7% of jobs could be affected in the short to medium term.
Scale of the challenge
The central scenario in the research estimates a seven percent impact on employment. That figure covers the State as a whole.
The ESRI says adoption of AI will shift tasks and roles across many sectors. The change will be uneven across job types.
High-skilled roles most exposed
The report finds losses concentrated among highly educated workers in top-paying roles. Entry-level positions in financial services and law face particular risk.
Multinational firms have cited AI-driven efficiency when making staff changes. Dublin-based Accenture warned it may exit staff who cannot be retrained to use AI tools.
Who authored the research
- Karina Doorley
- Sorcha O’Connor
- Richard O’Shea
- Dora Tuda
Household and fiscal consequences
The report warns that average disposable incomes are likely to fall. Middle and higher income households could see the largest losses.
Wages for those who keep jobs may rise with productivity gains. Those increases will not fully offset aggregate income loss.
Tax receipts could decline while welfare spending rises if job losses become sizeable. That outcome would put pressure on public finances.
Inequality and capital returns
AI adoption is expected to worsen income inequality across scenarios. Rising returns on capital would mainly benefit wealthier groups.
The authors note that broadening the tax base may become necessary. Strengthened taxation of wealth and capital is suggested to protect public services.
Policy responses and opportunities
The report urges a strong focus on training and upskilling. Ireland’s third-level education system is highlighted as an asset for retooling workers.
It recommends adding AI-complementary skills to university and post-Leaving Cert courses. That could reduce potential job losses.
Despite risks, the study also expects new occupations and employment opportunities to emerge. These new roles may create transition pathways for displaced workers.
The AI revolution threatens the Irish economy by concentrating high-end job losses among high-skilled workers, the report warns. Filmogaz.com reviewed the study and its key findings.
