Skills, AI, and competitiveness: Ireland’s opportunity during the EU Presidency
As Ireland hosts the Presidency of the Council of the European Union, it does so at a defining moment for Europe’s economy. Questions of competitiveness, productivity, innovation, and workforce readiness have moved to the centre of European policy debate, writes Tracey Donnery, Director of Policy and Communications, Skillnet Ireland.
From artificial intelligence (AI) and digitalisation to the green transition and demographic change, businesses across Europe are navigating unprecedented transformation.
Against this backdrop, one theme is becoming increasingly clear, competitiveness depends on skills. The publication of Mario Draghi’s landmark report on European competitiveness intensified the discussion around Europe’s capacity to innovate and compete globally.
A recurring message emerging from policymakers, employers and industry leaders is that it is the combination of new technology, and people with the capabilities to adopt, implement and maximise this new technology, that will deliver economic growth for industry. Skills, it is emerging, are at the nucleus of competitiveness for businesses throughout Europe, a trend reflected in the EU Union of Skills framework launched by the European Commission in March 2025.
For Ireland, this presents both an opportunity and a responsibility. During its six-month Presidency, Ireland will be well positioned to champion a skills-driven competitiveness agenda, drawing on decades of experience in workforce development and a collaborative model that brings together industry, education providers and government.
Building competitiveness through skills
Across Europe, skills shortages are constraining business growth in areas such as AI, digital technologies, cybersecurity, advanced manufacturing, renewable energy and construction. Businesses are increasingly finding that access to skilled talent is the key factor in their ability to innovate, scale and remain competitive.
As Ireland’s national workforce development agency, Skillnet Ireland has spent more than 25 years supporting enterprise growth through upskilling. Its enterprise-led model works through 73 Skillnet business networks and national initiatives, bringing together companies within sectors and regions to identify skills needs and develop targeted responses.
The impact of this model gained international recognition two years ago when Skillnet Ireland was ranked first among 47 international initiatives in the European Commission’s Pact for Skills report, which highlighted the organisation’s impact on business performance, workforce development and the twin green and digital transitions. This demonstrates an increasingly important reality for policymakers across Europe that economies that invest in workforce capability will be best positioned to compete in the future.
A new strategy for next-generation capability
These priorities are reflected in Skillnet Ireland’s new strategy, Empowering Enterprise 2026-2028: A Strategy for Next-Generation Capability, which is built around a central ambition to build Ireland’s competitiveness through skills. It recognises that future business success will depend on organisations having the skills, leadership capacity and innovation capabilities that are necessary to navigate continuous change.
Over the next three years, Skillnet Ireland aims to support 100,000 businesses, engage 15,000 companies for the first time, and bolster the growth ambitions of 1,000 start-ups and scale-ups through innovation-focused supports. At the heart of Empowering Enterprise 2026-2028 is a simple idea that competitiveness is defined by capability. The organisations best positioned to succeed will be those that can develop the skills, leadership and innovation capacity needed to navigate technological change.
The new strategy has continued to place a focus on AI workforce development as a strategic priority. In 2025 specialist AI upskilling supports were provided to more than 2,400 learners through enterprise-led programmes delivered by Skillnet business networks. Across the country, 130 AI-focused programmes were delivered, with 40 Skillnet business networks offering sector-specific AI training tailored to industries including financial services, hospitality, legal services, supply chain management and human resources.
AI capability: from practitioners to leaders
Across Europe, AI is rapidly transforming business operations, yet significant barriers remain to widespread adoption. Research from Skillnet Ireland’s Ireland’s Talent Landscape 2025 found that 73 per cent of businesses identified skills shortages as the greatest obstacle to successful AI integration. Addressing this challenge requires a dual approach of developing technical expertise while simultaneously building leadership capability.
One of the most significant achievements in this area has been the continued success of Skillnet business networks in developing relevant and valuable new training programmes in AI, for Irish businesses. Ireland’s first MSc in Artificial Intelligence was first developed by Technology Ireland ICT Skillnet in 2018 in partnership with the University of Limerick and industry stakeholders. The programme has produced more than 400 graduates since its launch, helping organisations build advanced technical capability while supporting the development of Ireland’s AI talent pipeline.
In 2025, Technology Ireland Digital Skillnet launched the AI Capability Accelerator, an executive-level programme designed to help leaders integrate AI into strategic decision-making and operational planning. The programme focuses on building organisational readiness, improving productivity and enabling leaders to operate confidently in an increasingly AI-enabled business environment.
Europe’s ambitions for productivity growth, digital leadership, AI adoption, and sustainable development will ultimately depend on the capabilities of its workforce. Access to upskilling is critically important to meeting the European Commission’s 2030 Digital Decade and Competitiveness Compass targets. Technology can create opportunity, but only people can turn that opportunity into economic value.
Ireland brings a strong record of industry-academic collaboration, enterprise-led workforce development, and practical innovation to this conversation. Through initiatives such as Skillnet Ireland’s business network model, its new Empowering Enterprise 2026-2028 strategy, and its growing portfolio of AI capability programmes, Ireland can demonstrate how investment in skills directly supports business performance and economic resilience.
The message for Europe is clear, competitiveness begins with capability. As businesses continue to navigate transformation, the most successful economies will be those that invest not only in technology, but in the people who use it.
