Louise O'Reilly
Ceist:49. Deputy Louise O'Reilly asked the Minister for Enterprise, Trade and Employment what his Department intends to do to increase the number of Irish businesses using big data, the cloud, and AI. [23124/24]
Amharc ar fhreagraThursday, 23 May 2024
Ceisteanna (49)
Freagraí ó Béal (6 píosaí cainte)
My question relates to the number of Irish businesses using big data. I want to ask the Minister of State about the digital intensity of Irish businesses, specifically SMEs. While I appreciate some businesses cannot be any more digitally intensified, there is scope there. We know digitisation is one of the twin challenges facing our economy now and into the future. I ask for an update on the number of businesses using big data and engaging with the cloud and artificial intelligence, and how this compares with the targets set in the harnessing digital 2030 document.
I thank the Deputy. Our Department is taking action on three fronts to increase the number of Irish businesses using big data, the cloud and AI. First, we are engaging with experts. I chair the newly refreshed enterprise digital advisory forum, which comprises industry and expert representatives and provides valuable advice and perspectives on how we can best help businesses to digitalise and adopt advanced digital tools, such as AI, data analytics and the cloud.
Second is access to funding and support. Funding for digitalisation is available through the €58 million digital transition fund. To date, almost 300 companies have been approved under this fund. Other digitalisation support, including advice, consultancy and grants, is available through local enterprise offices and the SME support package, which was launched last week. That package expanded eligibility for the trading online voucher to all sectors of up to 50 employees. We also expanded the eligible expenditure to €50,000.
I draw particular attention to CeADAR, Ireland's Centre for Applied AI, which was established by Government to act as the bridge between the worlds of applied research in AI and data and commercial deployment by business. CeADAR is playing a crucial role in helping businesses to adapt AI. We have also established four European digital innovation hubs to help businesses and SMEs, in particular, to adapt digital tools for their use. The hubs are one-stop shops, with research organisations at the core in turn providing access to technical expertise and facilities for experimentation, as well as innovation services and the training and skills development necessary for the successful digital transformation of each business.
We will launch a new digital portal, grow digital, shortly. It will help every business, small, medium and large, to self-assess their digital readiness. It will identify recommendations and supports to facilitate the next step towards their journey to digital transformation.
I thank the Minister of State for the response. In his follow-up response, he might address how we compare with the targets set in harnessing digital 2030. The four Ds of demographics, decarbonisation, digitalisation and de-globalisation are key trends likely to transform our economy over the next decade. Increasing digitisation is foundational in terms of putting the economy on the front foot for the coming decades. As the Minister of State said, this is about future-proofing. Investing in digitisation is key to building a robust economy that is high wage, high growth and high productivity. The State has to accelerate and enhance digital adoption to ensure Ireland becomes an international economic digital leader. To do that, it is not enough to set targets. The Minister of State outlined some of the steps that have been taken. The targets need to be monitored and we need progress reports on how those targets are being met. If they are not being met, we perhaps an need explanation as to why or how the Minister of State intends to meet them into the future.
I agree with the Deputy. We tend to monitor them. We work with the EU so that there is independent monitoring. We are one of the most advanced EU member states in that context. The EU digital economic and society index, known as DESI, published as part of the report on the digital decade, shows that Ireland has a leading position in the EU in terms of SMEs, with a basic level of digital intensity at 85% compared with our target of 90%.
Regarding the digitisation of businesses, 22.7% of businesses with more than ten employees are using big data, which places us fifth in the EU. The EU average is 14.2%. A total of 47.4% of businesses are using cloud, which puts us at eighth in the EU. The EU average is 34%. A total of 7.9% are using AI, which puts us at 13th in the EU and right on the EU average.
I am not happy with any of those figures. I want to see them grow. For them to grow, we have to grow confidence in businesses to adopt the technology. That is why we are enabling the digital portal which will allow each business to find its own space. The work of CeADAR and the European digital innovation hubs will perhaps simplify the journey and put the language involved in this journey in more accessible terms.
It is a brave Minister who would mention the portal in the current climate, so fair play to you. The Minister referenced 22.7% of business using big data, which is a small figure. I appreciate he said the figures are not where he would like them to be. Of the 75% not using big data, a substantial portion could and should be using it. I would like a bigger focus on encouraging that.
We must invest to grow indigenous digital enterprises and increase the attractiveness of Ireland as a location for leading digital enterprises. This has to be the focus and a growth area for the future. There is no reason we cannot become an international economic leader in cutting-edge digital technologies. We already have a significant strategic advantage due to the network of multinational and indigenous tech companies, as well as third-level research institutions focused on digital tech. With smart and strategic investment, Ireland can leverage these advantages and ensure we become a world leading digital society and economy. That is what the ambition needs to be.
Absolutely, but we already are a world leading digital economy. I want us to stay there and grow that in our indigenous enterprise space. We are there because of policy decisions taken by successive governments to invest in this space. We want to grow it by expanding the confidence of businesses to take the journey. That is why we expanded the trading online voucher and are investing in the portal so that businesses can compare themselves safely to where they need to be on their journey. That is why we are working through the LEO structure throughout the country. Confident and trusted sources will bring businesses on that journey. The most important thing for any business that needs to digitalise is that it has confidence and trust in the person guiding it on that journey. That is why we are putting investment of €58 million into the digital fund.