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      As AI shifts from experimentation to implementation, Ireland’s EU Presidency is well placed to convert Europe’s strong regulatory foundations into practical adoption, writes Rory Timlin, KPMG’s Technology, Data, & AI Leader.

      While many of the most visible AI breakthroughs of recent years have emerged from the United States, supported by deep capital markets, world-leading technology firms and a strong culture of innovation, the global AI landscape is increasingly diverse. Europe has played a significant role in advancing AI research, talent development, and regulatory frameworks, while also seeking to strengthen its position in commercialisation, scaling and industrial adoption.

      The challenge for Europe is not only in inventing AI technologies but converting scientific excellence into globally competitive businesses and widespread economic impact.

      Across Asia, governments and enterprises have also moved rapidly to integrate AI into economic and public-sector transformation. Approaches vary significantly, from China's state-backed investments in AI-enabled services and industrial modernisation, to Singapore's emphasis on trusted innovation, digital infrastructure, and practical deployment.

      Together, these developments highlight that the global AI race is being shaped not only by technological breakthroughs, but by policy choices, investment strategies, talent ecosystems, and the ability to scale adoption across entire economies.

      Through the GDPR, the AI Act, the Data Act, and the wider EU digital rulebook, Europe has established one of the world’s most comprehensive frameworks for the responsible development and use of AI, one that is mindful of the impact this technology can have on citizens’ rights and welfare.

      It is now critical that these frameworks become an accelerator to provide clarity and confidence for AI adoption across the EU. 

      From regulation to adoption

      The AI Act established an important risk-based framework. The immediate task is to make its phased implementation clear, proportionate and workable for organisations across Europe.

      Any framework built to regulate a fast-moving technology needs to evolve, and that means ongoing engagement between the European Union and Member States on how the Act works on the ground.

      This means giving governments and businesses the clarity and confidence to act on it. European countries already lead the way in controlling technology’s impact on citizens, from data rights to online safety for children.

      Converting that attitude into sector by sector guidance will enable businesses and public bodies to move to confident adoption.

      Investing in the fundamentals

      Delivering on that ambition requires investment on two fronts. The first is EU capital to support the emerging European AI companies that can stand alongside their US counterparts, and continued momentum behind digital sovereignty.

      The second is investment in the fundamentals that let organisations use AI. Businesses and public bodies need the skills to apply AI, the capital to modernise their data foundations, and the cloud infrastructure to run it at scale.

      Europe has already set out substantial ambitions through InvestAI and the AI Continent Action Plan. The test now is whether those commitments translate into accessible compute, data, skills, and implementation support for businesses and public bodies

      Ireland’s Presidency has an opportunity to influence pushing AI investment higher up the EU’s budget agenda, recognising that the return on Europe’s investment in AI depends on fostering greater adoption.

      Focus on public sector and SMEs

      Some of the greatest opportunities for broad-based citizen and economic benefits lie in public services, utilities, and established businesses that typically have more legacy complexity to work through before they can realise AI’s potential.

      Public sector bodies are naturally cautious given the legislative environment they operate within, and their technology estates are often less modern than those in other sectors. That is precisely why they merit the most support.

      The same logic applies to SMEs, who can face proportionately greater barriers to adoption, including limited specialist skills, investment capacity and access to suitable data and computing resources.

      An EU that channels incentives and skills programmes towards these groups will help ensure the benefits of AI are broadly shared across Europe’s economy rather than concentrated among the fastest movers.

      Ireland’s Presidency can use its convening power to focus EU support precisely where it will have the most transformative effect.

      Trust as Europe’s competitive edge

      For business, trust is a competitive advantage, and one Europe is well positioned to own. Every organisation weighing up AI adoption is really asking one question: can I trust this technology enough to delegate work or decisions to it with confidence? Sectors operating under the tightest constraints, such as healthcare and financial services, have the most to gain from clear guardrails.

      That trust cannot come from principles alone. It needs to be translated into practical guidance on what organisations need to do, and accessible ways to test that their systems meet the bar.

      Clear standards, practical guidance, regulatory sandboxes and accessible assurance mechanisms can give organisations greater confidence to invest while allowing the technology to continue evolving.

      This is where Europe’s regulatory head start can become a commercial advantage, provided the translation from framework to practice is implemented.

      This clarity will depend not only on the AI Act itself, but on how it interacts with Europe’s wider rules on data, cybersecurity, platforms and sectoral regulation.

      A Presidency measured by delivery

      Ireland’s Presidency will not resolve every question facing European AI policy. It can, however, help bring greater focus to the next stage of Europe’s AI agenda: translating regulation and announced investment into adoption across the economy.

      That means using the debate on the EU’s next long-term budget to support compute, data, skills and commercialisation; directing practical support towards SMEs and public bodies; and reinforcing clarity and consistency as the AI Act is implemented.

      Ireland’s contribution should be measured not just by re-enforcing ambition, but by helping turn existing ambition into delivery.

      Get in touch

      Ireland's EU Presidency will help shape the future direction of Europe.

      To discuss how this could impact your organisation, get in touch with Rory Timlin; we'd be delighted to hear from you.

      Rory Timlin

      Partner, Management Consulting

      KPMG in Ireland

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