John Clendennen (Offaly, Fine Gael)
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241. To ask the Minister for Enterprise, Trade and Employment the anticipated engagement and support mechanisms his Department intends to provide for Irish enterprises and innovators participating in the forthcoming AI regulatory sandbox; and if he will make a statement on the matter. [62584/25]

Niamh Smyth (Cavan-Monaghan, Fianna Fail)
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As the Deputy will be aware, the EU Artificial Intelligence Act (Regulation (EU) 2024/1689) entered into force in August 2024 and provides a harmonised regulatory framework for AI systems developed or deployed in the EU. It is designed to provide a high level of protection to people’s health, safety, and fundamental rights and to simultaneously promote the adoption of human-centric, trustworthy AI. Its provisions will start to apply, in a phased manner, over the period to August 2027.

The AI Act introduces AI regulatory sandboxes as a key mechanism to foster innovation. An AI regulatory sandbox is a controlled framework set up by a competent authority which offers providers, or prospective providers, of AI systems the possibility to develop, train, validate and test, where appropriate in real-world conditions, an innovative AI system, in accordance with a sandbox plan for a limited time under regulatory supervision.

The AI Act stipulates that member states competent authorities must establish, and have an AI regulatory sandbox operational, by August 2026.

Throughout the process of developing the AI Act, consideration has been given to the circumstances and needs of SMEs. Member States must provide priority access to the AI regulatory sandboxes for SMEs as well as establish dedicated channels for communication to support SMEs throughout their development journey by providing guidance and responding to queries about the implementation of this Regulation.

My department is leading across Government on the national implementation of the AI Act and my officials are working closely with colleagues in other departments to devise the optimal configuration of national competent authorities for the Act to ensure comprehensive, robust and efficient implementation in Ireland.

Earlier this year, Government agreed to adopt a distributed model of competent authorities for the AI Act, leveraging the State's established sectoral regulatory authorities to carry out supervisory and enforcement roles. This approach recognises the capacity and expertise currently within the Irish regulatory system and enables us to position Ireland as a centre of regulatory excellence.

To date, thirteen public bodies have been designated as market surveillance authorities and four as notifying authorities under the Act, with some bodies having dual roles. Government also agreed to establish a new statutorily independent entity, the AI Office of Ireland, to facilitate coordination and provide centralised functions for the distributed model, including serving as the Single Point of Contact with the European Commission.

The AI office will act as the central co-ordinating body for EU AI Act and provide a focal point for the promotion and adoption of transparent and safe AI in Ireland, to ensure that we fully capture the strategic opportunity that AI presents. The office will also be responsible for ensuring the timely establishment of the national AI Regulatory Sandbox.

It is important to note that the European Commission is required to adopt implementing acts for sandboxes, setting out principles regarding participants selection criteria, application process, participation procedures and the general terms and conditions applicable to participants; first drafts are expected in Q1 2026.

In addition, the European AI Board has established a dedicated subgroup to support and expediate the role out of AI regulatory sandboxes across the EU. My officials are actively participating on the subgroup and contributing to the drafting process of the implementing acts.

A national AI regulatory sandbox will play a pivotal role in fostering responsible AI by balancing innovation with ethical and regulatory compliance. It will offer Irish businesses a controlled environment to innovate and test new AI technologies, products, and services under regulatory supervision, and will facilitate compliance with regulations before they are placed on the market. This will be particularly beneficial for SMEs and startups, which often lack regulatory compliance resources and expertise.

Building further on the current National AI Strategy, the forthcoming National Digital and AI strategy is expected to identify measures that enable Ireland position itself as the best location for development of responsible AI. One of its strategic actions is expected to be the role of the AI Office to ensure the establishment an AI regulatory sandbox to foster innovation in AI; to provide legal certainty for investors; and to facilitate regulatory learning. This also aligns with the Programme for Government 2025 commitment which aims to ensure that Ireland is a leader in digital economy and AI.

I would like to assure the Deputy that the Government is fully committed to the comprehensive and timely implementation of all aspects of the AI Act, including the establishment of the national AI regulatory sandbox.

Michael Cahill (Kerry, Fianna Fail)
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242. To ask the Minister for Enterprise, Trade and Employment if he will lend his support to the Killarney Innovation Centre new build project (details supplied); and if he will make a statement on the matter. [62401/25]

Alan Dillon (Mayo, Fine Gael)
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Since 2017, my Department has approved over €150 million in regional enterprise development funding through Enterprise Ireland schemes, to support enterprise ecosystems and regional jobs growth across all regions. The vast majority of funding has been approved for projects outside Dublin.

The Smart Regions Enterprise Innovation Scheme, co-funded under the European Regional Development Fund and administered by Enterprise Ireland, was launched in October 2023 and remains open for applications. Stream 1 supports the development of local enterprise infrastructure. The scheme also supports clusters and consortia, design and delivery of innovation programmes for SMEs, and feasibility and priming.

Smart Regions aims to support economic growth in all regions of the country. Among the projects approved so far, there are three projects underway in Kerry, including an allocation of €1 million for the AI Navigator Programme by the RDI Hub, located in Killorglin, which aims to assist small business in adapting to AI.

I note that Government has provided significant funding to support the Killarney Innovation Centre over a period of almost 30 years.

I understand that Killarney Innovation Centre has now applied to the Smart Regions scheme and is currently awaiting assessment of a priming application. The application has been received by Enterprise Ireland and I believe that a date for the presentation and assessment that forms the next step of the application process will be scheduled shortly.

Enterprise Ireland, as the administrators of the scheme, determine the success or otherwise of applicants based on a set of criteria examining the proposed goals and likely impact of funding. Part of Enterprise Ireland’s remit around this scheme is to help applicants such as the Killarney Innovation Centre to develop proposals in line with the scheme and its goals.

While it would not be appropriate to commit to funding such a project in advance of the outcome of the evaluation process, the Deputy can rest assured that appropriate consideration will be given. I wish Killarney Innovation Centre well in its application.