General Scheme of the Regulation of Artificial Intelligence Bill 2026

Ireland’s AI ecosystem has reached a decisive moment. With the EU Artificial Intelligence Act now in force and national implementation accelerating, the General Scheme of the Regulation of Artificial Intelligence Bill 2026 marks a milestone in the evolution of how AI systems will be governed, supervised and enforced inIreland.

The Bill establishes a new national regulatory architecture for AI, introduces significant enforcement and sanctioning powers, and creates Oifig IS na hÉireann, the AI Office of Ireland, as the central coordinating authority for AI governance.

For Irish based organisations developing, deploying or integrating AI systems, there are implications. Firms now face clear legal duties, cross sector oversight, and heightened scrutiny. At the same time, there is an opportunity to embed trustworthy AI as a source of competitive advantage, resilience and long-term growth.

Jackie Hennessy

Partner, Risk Consulting

KPMG in Ireland

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Shane Garahy

Partner, Risk Consulting

KPMG in Ireland

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Global and European catalysts

From EU Law to Irish enforcement

When enacted, the Regulation of Artificial Intelligence Bill 2026 will give effect in Irish law to Regulation (EU) 2024/1689, the EU AI Act. That Regulation introduces a risk-based framework governing the following categories of AI activity.

Prohibited AI practices.
High risk AI systems.
Transparency related AI systems.
General purpose AI models.

Ireland’s response reflects both EU level urgency and national policy choices. The Government has adopted a distributed enforcement model, designating existing sectoral regulators as Market Surveillance Authorities, while also establishing acentral AI Office to coordinate oversight, reporting, expertise and EU engagement.

This approach recognises that AI risk cuts across financial services, health, employment, digital platforms, infrastructure and public services, and cannot be regulated effectively through a single sectoral lens.

The AI Office of Ireland as central coordinator

At the heart of the Bill is the creation of Oifig IS na hÉireann, the AI Office of Ireland, an independent statutory body responsible for the following functions.

Acting as Ireland’s Single Point of Contact under the AI Act.
Coordinating consistent enforcement across Market Surveillance Authorities.
Maintaining national AI registers and reporting obligations.
Facilitating regulatory cooperation at EU and national level.
Promoting AI literacy, innovation and responsible adoption.

The Office does not replace sectoral regulators. Instead, it enables coherence across a fragmented regulatory landscape, ensuring Ireland meets its EU obligations while avoiding inconsistent or duplicative enforcement.

This framework brings AI enforcement into line with established regimes in product safety, competition and communications regulation, signaling that AI compliance is no longer aspirational but enforceable.

Implications for Ireland’s tech sector

Regulatory convergence and scrutiny
Compliance as competitive advantage
Regulatory and reputational exposure

Organisations should expect multi-authority engagement where AI systems intersect with data protection and privacy, consumer protection, employment and workplace rights, health and safety, and media regulation and digital services. The Bill explicitly facilitates information sharing, cooperation agreements and coordinated investigations between competent authorities, both domestically and across the EU.

For organisations, this means AI risk can no longer be managed in silos. Technical, legal, ethical and operational considerations now converge within a single regulatory ecosystem.

While the compliance burden is real, the Bill also creates clear opportunities for organisations that act early and strategically.

Trust and market access: Demonstrating compliance with the AI Act and Irish enforcement expectations will increasingly become a condition of market access, procurement eligibility and partnership trust.

Operational resilience: Embedding AI risk management, documentation, incident reporting and human oversight strengthens governance, audit readiness and crisis response.

Innovation through clarity: Clear regulatory expectations enable safer experimentation, particularly through AI regulatory sandboxes, which the AI Office is mandated to establish or participate in, with priority access for SMEs and start ups.

Organisations that fail to adapt face material risk, including enforcement action and financial penalties, mandatory system withdrawals or prohibitions, public findings of non compliance, and reputational damage linked to fundamental rights impacts.

The Bill places particular emphasis on high-risk AI systems, misclassification, lack of documentation, and failures affecting vulnerable groups or fundamental rights.

Practical roadmap: Next steps for Irish organisations

Successfully navigating this landscape will demand an integrated response spanning regulation,safety engineering, identity, AI governance and operational resilience.

Diagnose (0–3 months)

Organisations should map AI systems against AI Act risk categories, identify whether systems qualify as prohibited, high risk or transparency regulated, and assess readiness for documentation, record keeping and reporting.
Design and pilot (3–9 months):

Organisations should embed AI risk management, human oversight and governance structures, align product design with fundamental rights and transparency obligations, and engage with emerging AI Office guidance and sandbox opportunities.
Scale and assure (9–18 months)

Organisations should industrialise compliance across product portfolios, prepare for inspections, audits and enforcement interaction, and integrate AI governance into board level oversight and enterprise risk frameworks.

How KPMG can help

KPMG Ireland offers end-to-end support, from benchmarking your current posture to designing and implementing privacy-first compliance architectures. Our multidisciplinary teams can help you turn regulatory change into an opportunity for growth, resilience, and innovation. We can support you with:

Regulatory benchmarking

Assess your current posture against the AI Act and the Irish enforcement framework.
AI risk classification and system mapping

Classification of AI systems across the enterprise, including assessment against prohibited, high risk and transparency categories.
Design & implementation

Embed compliance by design into AI systems ensuring the integration of transparency and explainability requirements.
Governance, policy and operating model design

Design proportionate AI governance frameworks, including policies, risk management processes, and accountability structures that align with board and senior management responsibilities.
Training & change management

Equip your teams with the knowledge and tools to sustain compliance and drive innovation.
Regulatory engagement and readiness

Prepare for engagement with the AI Office of Ireland and MSAs, including inspection readiness, evidence preparation and response planning for regulatory queries or enforcement action.

Get in touch with our AI Consulting team

At KPMG we understand the pressure business leaders are under to get it right on tech and AI.

To find out more about how KPMG perspectives and fresh thinking can help your business please contact our AI team today. We’d be delighted to hear from you.