Ireland ranks fourth globally for AI engineering talent

Ireland ranked fourth globally for AI engineering talent in the latest Labour Market Pulse report from IDA Ireland, Microsoft and LinkedIn. The report also found that Ireland ranks first in Europe for AI adoption.

LinkedIn data showed that 1.31% of its members in Ireland were classified as AI engineering talent, placing the country behind Israel, Singapore and Luxembourg, and ahead of Germany, the UK and France. Ireland also ranked fourth globally for net AI talent migration, suggesting it continues to attract AI workers as competition for specialists intensifies.

The findings come as the Irish labour market appears to be holding up better than some neighbouring economies despite a broader slowdown in recruitment. In September, LinkedIn's hiring rate for Ireland fell 6.7% year on year, compared with declines of 11.3% in the UK and 18.1% in Germany.

Employment in Ireland reached 2.84 million in the second quarter, up 1% from a year earlier, while unemployment remained at or below 5.1% for 54 consecutive months. There was no clear evidence that AI was the main factor behind weaker hiring across the wider economy, the report found.

At the same time, it pointed to pressure in parts of the junior jobs market. Entry-level hiring fell 8.3% year on year in September, broadly in line with the overall decline. But entry-level hiring in AI-augmented occupations dropped 16.2% year on year in the second quarter, compared with a 10.8% fall across those occupations overall.

In software engineering and data analysis, the data showed signs of a sharper reduction in junior recruitment. The report also cited labour force survey data indicating weaker outcomes for younger workers in some sectors, especially ICT services, though the extent of any direct AI effect remained unclear.

Skills demand

Demand for AI-related skills continued to rise. The share of LinkedIn job postings in Ireland requiring AI engineering skills increased by 29% between 2019 and 2025.

AI Engineer, Machine Learning Engineer, Data Annotator, Analytics Specialist and Data Analyst were identified as the five fastest-growing AI occupations in Ireland this year. The report also found that 63% of Irish workers now use AI tools at work, while 76% see AI as a major economic opportunity for the country.

Microsoft's global AI diffusion data placed Ireland first in Europe and third worldwide for generative AI use among the working-age population. According to the report, that places Ireland among the strongest adopters of workplace AI tools.

Investment picture

The study linked that adoption trend to broader investment flows into digital projects. Digital and AI investment accounted for 40% of global greenfield foreign direct investment in 2025, while AI and related infrastructure created 1.3 million jobs worldwide between 2023 and 2025.

In Ireland, IDA client companies committed €2.5 billion across a record number of research, development and innovation investments in 2025. Around two-thirds of the projects supported by IDA involved AI, while Dublin ranked fourth among European cities for AI-related foreign direct investment projects, with 25 since 2025.

Employment across IDA's client base grew by 1.5% in 2025. Job losses as a share of total employment were just over 4%, the lowest level in a decade, according to the agency.

Minister Peter Burke of the Department of Enterprise, Tourism and Employment said: "I welcome the latest findings from the Labour Market Pulse series. The Irish labour market is performing well with employment levels and rates remaining high, and unemployment low at close to 5%. Ireland has moved quickly in adopting AI, with strong AI usage and diffusion across our economy. We need to stay ahead and build on this momentum to fully reap the benefits from AI, a core theme of this week's International AI Summit as part of Ireland's EU Presidency."

"The latest Labour Market Pulse shows that Ireland enters the AI era from a position of real strength. Even as hiring has moderated internationally, employment across IDA's client base grew in 2025. Digital and AI accounted for 40% of global greenfield investment last year, and around two-thirds of the RD&I projects we supported last year involve AI. Ranking fourth in the world for AI talent sends a powerful signal to investors, and our focus now is on building on that advantage through continued investment in talent, infrastructure and adoption," said Michael Lohan, Chief Executive Officer of IDA Ireland.

James O'Connor, Microsoft Ireland Site Lead and Corporate Vice President of Microsoft Global Operations Service Centre, said: "AI is the defining technology of our time, and today's Labour Market Pulse shows Ireland is embracing it faster than almost anywhere in the world. That gives us real reason to be optimistic about how AI can empower people, businesses and public services and reinforce Ireland's position as a digital leader globally.

"To fully harness that opportunity, we need an all-of-society approach to skills, so that every worker and every business, from start-ups and SMEs to our largest employers, can use AI responsibly and effectively. That means Government, industry and education continuing to work together in support of the National Digital and AI Strategy. At Microsoft, we are proud to play our part, having invested more than €12million in developing and delivering STEM and AI skills programmes since 2018."

Cara O'Leary, Country Manager and Head of LinkedIn Ireland, said: "Ireland is ahead as Europe enters the AI economy. With the fourth highest concentration of AI engineering talent anywhere in the world, a labour market that has proven remarkably resilient during a global hiring slowdown, and a workforce that is leading Europe in embracing AI tools, Ireland is at an advantage. What we need to see now is continued investment in the diffusion of skills and technology right across the economy to translate that potential into inclusive growth and opportunity for both businesses and workers.."