Enterprises in Ireland have spent an estimated €720 million on artificial intelligence projects that delivered no usable outcome, according to new research from Dublin-based IT consultancy Saros Consulting.
The study, carried out by Censuswide, surveyed 200 IT decision-makers in large organisations across Ireland and found that 99% of businesses have experienced AI project failure.
On average, large organisations reported spending €770,000 on AI initiatives that ultimately produced no meaningful results, highlighting the risks companies face as they accelerate adoption of the technology.
Despite the setbacks, interest in AI remains strong. Around 62% of respondents said AI is now important to their business, reflecting the growing pressure on organisations to integrate AI capabilities.
However, the research suggests that many businesses are investing without a clear plan. Only 58% of organisations reported having an established AI strategy, while 57% admitted they have spent more on failed AI projects than on successful ones.
IT leaders cited regulatory concerns (24%), budget constraints (24%) and a lack of AI governance (23%) as the main barriers to effective implementation.
The findings also highlight transparency and compliance challenges. More than half of respondents (53%) said their organisation had deployed AI systems that made decisions they could not explain to customers, while 54% said they were unable to clearly explain those decisions to regulators.
In addition, 53% reported discovering biased or discriminatory decisions made by AI systems within the past 12 months.
The study also points to internal pressures around AI adoption. Only 58% of IT decision-makers believe leadership teams have realistic expectations about what AI can deliver, while 63% said IT leaders are hiding their lack of preparedness due to pressure from senior management.
Ray Armstrong, co-founder and co-CEO of Saros Consulting, said many organisations are investing in AI without clearly defined objectives.
“Our research shows that AI ambitions are coming at an unnecessary cost to enterprises in Ireland,” he said. “While the potential of AI is significant, organisations must define a clear strategy before committing major investment.”
