Government must deliver meaningful tax incentives for digital transition and AI adoption in Budget 2026 or risk Ireland falling behind in the competitive tech race. With Budget Day less than a week away, Digital Business Ireland (DBI), the national representative body for digital and online businesses, is today urging Government action to support industry in Ireland. 

DBI issued a detailed pre-budget submission earlier this year; and today provided a final pre-budget briefing to Oireachtas members in Leinster House at an event hosted by Naoise Ó Cearúil TD. DBI spokesperson dp Fitzgerald outlined the organisation’s proposals, which include introduction of an Accelerated Capital Allowance (ACA) for investment in AI and digital technologies. This would allow companies to write off 100% of tax for capital investment in a single year, instead of over eight years as under present rules. A similar ACA already exists for green technologies. 

The representative body is also calling for the introduction of a tiered system of grant support, with varying levels of funds for digital transition to match levels appropriate to enterprises at different sizes and stages of growth as well as increased investment in digital and AI courses, and enhancement of advisory and support for compliance with digital regulation. 

Fitzgerald stated- “At a time when new technologies such as AI offer unprecedented opportunities for Ireland to become a world leader in the digital space, our businesses cannot afford to fall behind in the digital transition. The reality is that digital intensity in Ireland is far too low, particularly among SMEs. Just 74% of SMEs reach basic levels of digitalisation, and less than 30% are adopting advanced technologies such as AI, sophisticated cloud tools, and data analytics. That is a competitiveness gap we urgently need to close.” 

Fitzgerald also pointed to the recent ESRI report that the share of SMEs investing in digital activities fell from 41% to 36% between 2021 and 2023- a worrying trend which must be reversed to enhance Irish SME growth and international competitiveness. 

Following his presentation, Fitzgerald introduced fellow DBI partners John Mitchell, CEO of All human, and Seán Tobin, head of strategic communications and digital development for .ie, Ireland’s national registry, who participated in a Q&A with attending officials. 

ENDS 

For media inquiries, please contact: 

Finn Phelan, Digital Business Ireland 

M: +353 83 066 6700 | E: Info@digitalbusinessireland.ie 

About DBI  

Digital Business Ireland (DBI) is the voice of the Irish digital commerce sector.  

Established in 2019, DBI’s community extends to more than 8,500 businesses and counts a number of national trade representative bodies as part of its membership, along with SMEs, individual, and larger businesses. The organisation’s membership footprint continues to grow across a range of sectors to include retail, hospitality, professional services, travel, technology, transport, education, leisure, agri-business and property.  

Through engaging its network, DBI provides a vast range of services to include; national conferences, training and events, networking opportunities, general advisory, insights, advocacy and public policy development – all of which, collectively facilitate digital businesses to grow, thrive and achieve their ambitions.