Naoise Ó Cearúil (Kildare North, Fianna Fail)
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41. To ask the Minister for Enterprise, Trade and Employment the measures being considered to ensure that regulatory oversight under the European Union AI Act does not create barriers to AI start-ups and SMEs; and if he will make a statement on the matter. [50602/25]

Niamh Smyth (Cavan-Monaghan, Fianna Fail)
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My department has lead responsibility for the national implementation of the EU Artificial Intelligence (AI) Act. Ireland has taken a major leap forward in the rollout of the EU AI Act, as part of the leading group of Member States to reach the critical milestone of designating the competent authorities which will be responsible for enforcement of the Act.

Ireland has adopted a distributed model of competent authorities for the EU AI Act, with a designated central authority to provide coordination and several centralised functions. This approach builds on Ireland’s strong regulatory structures to maintain regulatory coherence and efficiency and reflects the Government’s commitment to responsible innovation and the adoption of trustworthy AI. My department is working closely with other departments and competent authorities to ensure that the distributed model for the implementation of the EU AI Act is comprehensive and robust.

The AI Act Regulation adopts a risk-based approach, so that its measures are targeted and proportionate. Consequently, many SMEs will experience no, or minimal, impact due to the lower risk nature of their AI systems. This risk-based regulation puts in place guardrails for the development and deployment of trustworthy, human-centred AI in the European Union, balancing protection of fundamental rights with promotion of innovation. The Act provides harmonised regulatory clarity and certainty for businesses that are planning to develop AI or to invest in AI solutions for use across all EU Single Market.

Throughout the process of developing the AI Act, consideration has been given to the circumstances and needs of SMEs. In parallel with the rules to mitigate the risks of harm from AI systems, the AI Act contains measures in support of innovation with a particular focus on the needs and constraints of SMEs, including startups. This includes application of lower level penalties to SMEs, an emphasis on AI literacy and capabilities, and the requirement for EU and National Sandboxes to assist businesses innovate and achieve compliance with AI regulations.

The Department of Enterprise, Trade and Employment (DETE) has worked with CeADAR, Ireland’s Centre for AI to develop an online AI literacy training course “AI for You: Introduction to AI and the EU AI Act”, which is available free of cost to all SMEs.

My department will continue to consider the impact of the Regulation on SMEs as it further develops and implements the national supervisory and regulatory framework.

My department is working within the EU to ensure that the AI Act is implemented in an appropriate way, to deliver the right balance between risk and opportunity for innovation and growth, and it is actively engaged with the consultation process for the forthcoming EU Digital Simplification package as part of the EU’s focus on competitiveness. These considerations include sufficient resourcing of the AI Board and its subgroups during and after the implementation timelines, accelerating the development of guidelines and harmonised standards to support smooth implementation of the EU AI Act, clarification of the interplay between the AI Act and other Union digital regulations, and streamlining and consolidating overlapping regulatory compliance and reporting requirements.