Mr. Kieran McCorry:

Globally, McKinsey estimates that productivity gains from generative AI could add the equivalent of up to $4.4 trillion annually. These are big numbers. We calculate that it could add €18 to €20 billion to the value of the Irish economy each year. Last November, with Trinity College, we conducted research on generative AI adoption in the workplace. Some 49% of respondents were already using generative AI and a similar number expected productivity gains. Notably, multinationals here are more likely to be adopters than indigenous businesses. Perhaps this is a point worthy of further discussion.

On jobs impact, a 2023 OECD employment outlook report found that the net impact on employment was ambiguous with some labour displacement but also additions driven by productivity gains. Highly skilled, non-routine roles are the most exposed to generative AI progress and there is little evidence of significant negative employment effects due to AI. As we look ahead, the top three areas we believe are key to Ireland harnessing the positives and minimising the challenges are political alignment and support, SME capacity building; and skilling programmes. We believe the first requirement is well in hand with EU and domestic adoption of legislation and regulation. Still, it requires Government Departments, agencies like Enterprise Ireland, SOLAS and the local enterprise offices, and bodies like the enterprise digital advisory forum to work together.

We support the committee's October 2023 recommendation for this Parliament to explore the establishment of a joint committee focused on the use and deployment of AI, open to all voices and all communities. Second, for SMEs, there are issues of scale, capacity and resources. AI offers an opportunity for them to reduce admin and focus on why they got into business in the first place. They may need support to get started and assistance at appropriate times as their adoption progresses. There are many instances of the Government taking on similar challenges over the last ten or 12 years.

The final and possibly the most crucial response is that of skilling. The World Economic Forum's Future of Jobs Report 2023 revealed that a quarter of all jobs worldwide will change by 2028 and 60% of all employees will need reskilling by 2027. These findings are often a source of concern for workers. Microsoft understands this and has made significant commitments and introduced programmes to help to support the Government and communities through training when and where people need it. Our skill-up Ireland initiative makes AI skills training available to everyone through our dream space STEM programme, through partnerships with higher education institutions, via NGOs like Fastrack into IT, and via the connected hub network around the country. We would be happy to discuss how the Government and industry can develop partnerships to add more bandwidth and agility to provide learning opportunities for everyone.

At the recent Digital Ireland event in Dublin Castle, our visiting vice president, Mary Snapp, in response to a question about who should be driving regulation, mentioned that nobody elected Microsoft. This goes to the heart of our approach. Elected legislators and appointed regulators should set out the guardrails and as an industry we must respond substantively and be part of that conversation. We also look forward to discussing how some Irish organisations are already advanced in their AI adoption. In education, the Limerick-based start-up, Nurture, uses AI to support school teaching. In health, UCD’s AI_PREMie is developing better diagnostics for pre-eclampsia. In the legal profession, Irish company TrialView is embedding AI in its case management products. An Post is developing new business opportunities using generative AI. Many Government Departments are embracing AI to develop new systems to make accessing information simpler. We welcome members' questions and the discussion to follow and hope that the conversation continues beyond today as we work together to ensure Ireland leads in the AI space and offers benefits for everyone in our society.