Confusion in business about looming State rules on AI

Institute of Directors survey shows awareness of importance of AI for business but uneven implementation and governance

Caroline Spillane, chief executive of the Institute of Directors says strong governance on artificial intelligence is no longer optional. Photograph: Patrick Bolger
Caroline Spillane, chief executive of the Institute of Directors says strong governance on artificial intelligence is no longer optional. Photograph: Patrick Bolger

Two-thirds of Irish business leaders say they do not understand what new Government rules on artificial intelligence (AI) will mean for their business.

A survey by the Institute of Directors finds that despite growing engagement with AI, significant gaps remain.

A snap poll of 378 directors and senior business leaders across multiple sectors found that half claim to be “intermediate” users of digital and AI tools such as ChatGPT and Microsoft Copilot. A further 35 per cent say they are at beginner level.

But just under half of company boards have discussed AI governance at a formal meeting in the past year. That comes as the Government has published the overview of its Regulation of Artificial Intelligence Bill 2026.

Close to two in three directors say they, and their organisations, are not equipped for the implementation of the Bill. A similar number say they do not understand what new AI rules will mean for their organisation.

Despite that uncertainty, there is a general view that AI will be strategically important for their business with 78 per cent saying AI is important or critical for competitiveness in their sector.

Within that, one in three believes AI will be essential to stay ahead of competitors while 46 per cent see improved operational efficiency as the main benefit.

Six in 10 business leaders say their organisations have already implemented AI to some degree with a further one in three evaluating future use.

“Irish leaders recognise the transformative potential of AI, but the pace of adoption is outstripping the development of governance, skills, and regulatory preparedness,” said Caroline Spillane, chief executive of the Institute of Directors Ireland.

“With more than half of organisations already using AI tools, boards must now ensure they have the literacy, guardrails and oversight mechanisms required to deploy AI responsibly. However, just one-third of respondents have a formal strategy in place that incorporates the effective use of AI, while 43 per cent are only now beginning to develop one.

“As Ireland prepares for new legislative frameworks, directors have a critical role to play. Strong AI governance is no longer optional: it is central to safeguarding competitiveness, public trust, and organisational resilience.”

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