AI reshapes workforce planning as Irish employers face changing skills needs
AI and digital skills are increasingly shaping workforce decisions, as Irish businesses adapt recruitment and resourcing plans to technological change, new Ibec research finds
Print17 September 2026
Ibec, the group representing Irish businesses, has published its annual ‘Talent, Trends and Pay Survey – Pay and Resourcing Forecast 2026’, highlighting the growing influence of artificial intelligence and digital skills on workforce planning.
The research, based on responses from 336 senior HR professionals, shows that businesses are increasingly looking to recruit new skills as they adapt to technological change.
New skills requirements, including digital and AI skills, were identified as a driver of additional headcount by 28% of respondents across all priorities.
AI driving demand for new skills
AI is featuring in both sides of workforce planning, with businesses identifying new digital capabilities as a reason to recruit, while also looking at how technology can change the way work is organised.
Among organisations planning to increase headcount, 28% cited new skills requirements, including digital and AI, across their priorities.
Increased production and demand for services was the most widely cited driver at 81%, followed by business expansion or expansion into new markets at 74%.
At the same time, digital efficiencies and AI are emerging as a factor in workforce reductions. Among the 27 organisations reporting plans to reduce headcount, 52% cited the reorganisation of work due to digital efficiencies and AI across their priorities, with 15% identifying it as their top priority.
Recruitment remains focused on permanent roles
Overall, the survey points to continued, although softer, demand for workers.
35% of businesses expect their headcount to increase in 2027, compared with 37% forecasting an increase for 2026 and 41% in 2025. 57% expect headcount to remain unchanged, while 8% anticipate a decrease.
Where businesses are increasing headcount, permanent recruitment remains the dominant approach, with 92% expecting additional staff to be hired on a permanent basis.
“While we are seeing a continued softening in headcount growth expectations, overall workforce resilience remains very strong,” Maeve McElwee, Ibec’s executive director of employer relations, said.
She added: “Even with a slight labour market cooling, employers continue to prioritise permanent recruitment and talent development to maintain competitiveness despite ongoing global volatility.”
McElwee said recruiting the necessary skills, both domestically and internationally, remains a primary focus for HR leaders, while businesses continue to report challenges around attracting international workers to key sectors.
Calls for greater investment in AI training
McElwee also highlighted the need for greater investment in workforce training as businesses respond to the rapid development of AI.
“Given these cost pressures, it is surprising that funds from the employer-funded National Training Fund are not being urgently deployed to support employee training in areas like AI, where there is clear employee apprehension alongside an obvious business need to adapt,” she said.
McElwee added: “We appear to be creating unnecessary economic risk when Ireland is better placed than most economies to deploy these resources, support the skills transition, and ensure our workforce is well-positioned to benefit from this significant technological change.”
Pay growth expected to moderate
The survey also found that pay increases are expected to continue in 2027, although at a slightly lower level than this year.
83% of organisations expect to increase basic pay rates next year, with the average expected increase standing at 3.1%. This compares with 85% of organisations increasing pay in 2026, with an average increase of 3.5%.
Ibec said wage growth continues to be influenced by competition for specialised skills, productivity and business performance, while employers face continued pressure from rising labour and operating costs.
The findings provide an indication of how Irish businesses are balancing recruitment and skills investment with efforts to improve efficiency as new technologies, including AI, reshape the workplace.
Read more: Ibec welcomes Action Plan on Competitiveness and Productivity
© 2026, ShelfLife by Patryk Goron
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