Ireland could be seeing early signs of artificial intelligence (AI) replacing human jobs.
A new report by the Department of Finance warns that AI is likely a contributing factor to the slowdown in hiring of young people.
It also warns that Ireland’s labour market is “particularly exposed to AI” due to high concentration of jobs in tech and financial services.
There is “evidence that AI may have already influenced employment patters in Ireland, with ‘at risk’ sectors recording significantly weaker employment growth since 2023 than lower exposed sectors”, the report warns.
“These effects are particularly pronounced for younger workers in highly digitised sectors.”
The report also notes the speed with which AI has become an essential element of potential employees’ skill set.
According to data from the recruitment firm, Indeed, more than one in ten job ads in Ireland included a requirement for knowledge relating to Artificial intelligence.
That compares to one in twenty jobs in the UK and only around three percent of jobs across the European Union.
Commenting on the report, Tánaiste and Minister for Finance, Simon Harris TD, said:
“Our labour market has shown remarkable resilience in recent years, with employment at record levels and unemployment remaining low by historical standards.
“At the same time, we know that we are now entering a period of profound technological change. Artificial Intelligence is rapidly moving from development into real-world deployment, and today’s analysis suggests that Ireland – as one of Europe’s most digitally advanced economies – may be at the frontier of these changes.”
The report notes that Ireland is one of Europe’s leaders on AI with LinkedIn data ranking Ireland fourth in the EU and fifth globally for its concentration of AI talent.
“AI presents significant opportunities to enhance productivity and strengthen our competitiveness, but we must also ensure that workers and firms are equipped to adapt”, said Simon Harris.
“That means investing in skills, supporting life-long learning, and continuing to roll out enterprise supports that help firms adopt and deploy new technologies.
“Today’s Insights also show that, despite some moderation in employment growth, overall labour market conditions remain solid. My priority is to sustain that strength while preparing for the structural changes that lie ahead.”