ARTIFICIAL INTELLIGENCE IS likely to be responsible for at least some of a recent slowdown in employment among young people in Ireland, according to a new report examining the technology’s impact on the labour market.

However, the report from the Expert Group on Future Skills Needs (EGFSN) says it remains “too early to be definitive” about whether AI is causing significant job losses across the Irish economy.

The report points to CSO figures showing employment growth among people aged between 15 and 24 has been flat over the past two years and contracted over the past year.

By comparison, employment across the economy grew by an average of 2.2% over the same period.

“Some of this could and is likely to be due to the impact of AI,” the report states.

It also cites research from AI company Anthropic which found early-career workers reported AI could carry out a greater proportion of their tasks than more experienced employees.

The EGFSN identifies the impact on younger people and graduates as a “critical question”, warning that traditional entry routes into careers could be reshaped as AI becomes more widely used.

‘Too early to be definitive’

More broadly, the report cautions against attributing recent changes in employment solely to AI.

It notes that some sectors which expanded rapidly following the Covid-19 pandemic have since slowed, while wider economic conditions have also changed.

“At this stage, it is too early to be definitive, and context is needed,” the report states.

The report concludes that AI is currently complementing workers rather than replacing them, with its immediate impact “less about widespread job displacement and more about the reorganisation of tasks, time savings and changing skills requirements”.

It does, however, say AI “will replace certain tasks and occupations”, describing some displacement as inevitable.

The findings come four months after separate research from the Economic and Social Research Institute (ESRI) estimated that around one in every 14 existing jobs in Ireland could be displaced by AI in the short to medium term.

In its central scenario, the ESRI estimated that 7% of current jobs could be lost, with clerical, technology and professional roles among those most exposed.

Unlike previous waves of technological change, that research found middle and higher-income households could be particularly exposed because many higher-paid workers perform tasks that can potentially be automated.

Ireland a ‘global front-runner’

At the same time, the EGFSN report finds Ireland has emerged as a “global front-runner” for AI-related jobs and talent.

Ireland is generating jobs requiring AI skills at between two and three times the pace of neighbouring countries, while the proportion of Irish job advertisements referencing AI has roughly doubled since 2023.

Enterprise Minister Peter Burke said Ireland had “moved quickly” to become a global leader in AI adoption.

“The pace of change is astounding and the research highlights how well we are doing across several key metrics,” Burke said.

However, the report warns that adoption remains uneven.

Some 57.3% of large Irish enterprises were using AI in 2025, compared with 28% of medium-sized businesses and 16.8% of small firms.

The EGFSN warns this could contribute to a “two-speed economy”, with larger companies capturing a disproportionate share of the productivity benefits.

Burke said the government needed to continue investing in education and training to broaden the benefits.

“We have made a very strong start in this process, but we must sustain this and continue to lead in the years ahead,” Burke said.