Higher education, research, innovation and science minister James Lawless has announced new research from Skillnet Ireland which reveals that more than three-quarters (78%) of business leaders view upskilling as a strategic priority and critical to future business success.

Single most important enabler of success

The report, entitled Ireland's Talent Landscape 2026, was based on research conducted by Ipsos B&A with a nationally representative survey of 750 business leaders. The research shows that access to skilled talent remains the single most important enabler of success. Among SMEs (10-49 employees), 72% identified access to qualified talent as very important, rising to 75% among large businesses (250+ employees).

Minister Lawless said: "The strength of Ireland's economy has always depended on the talent of our people. As businesses navigate rapid technological change and evolving market demands, investing in skills has never been more important. This research provides a valuable picture of the challenges and opportunities facing Irish enterprises today and reinforces the need to ensure businesses of all sizes can access the skills they need to grow, innovate and thrive in the years ahead."

L-R: Mark Jordan, chief executive, Skillnet Ireland; higher education minister James Lawless; and Aoife O’Sullivan, head of network development & innovation, Skillnet Ireland.

Now in its third year, Ireland's Talent Landscape tracks changing workforce priorities and the emerging skills needs across the Irish economy. The new study found that more than half of companies expect the core skills required by their workforce to change over the next three years, rising to 79% among larger organisations.

Mark Jordan, chief executive of Skillnet Ireland, said: "The findings reinforce a clear message from Irish business leaders that workforce development is now a strategic business imperative. As technologies continue to evolve and industries transform, businesses need access to innovative upskilling opportunities to remain competitive and future ready. Our 73 Skillnet Business Networks and National Initiatives are working with enterprises of all sizes to build the skills, leadership capabilities and talent required to navigate digital transformation, adopt AI, drive sustainability and respond confidently to future workforce challenges."

The research also reveals significant differences in how businesses are progressing through digital transformation. Using a new Digital Intensity Index, based on Eurostat methodology, the findings point to a two-speed digital economy, with organisations at different stages of digitalisation facing very different workforce challenges. While 41% of Irish companies demonstrate high or very high levels of digital intensity, the majority remain at lower levels of digital adoption.

Digital maturity is strongly linked to workforce requirements. Businesses with high digital intensity are significantly more likely to report changing skills needs and demand capabilities related to leadership, advanced technologies and innovation. In contrast, organisations with lower levels of digitalisation continue to focus on recruiting for traditional operational and trade-based roles.

Digital intensity also varies by sector. Half of businesses operating in the manufacturing, technical and engineering sectors reported high or very high digital intensity, compared with one-third of businesses in industry and construction.

The report identifies a growing relationship between digital maturity and AI readiness. Among businesses with very high digital intensity, 82% believe AI will have a significant or transformative impact on their organisation within the next two years.

Despite this growing awareness, investment in AI skills development remains limited. Just 27% of businesses plan to invest in AI upskilling over the next 12 months. Among organisations identifying AI training needs, AI content generation and prompt engineering emerged as the most frequently cited capability, highlighted by 35% of respondents.

Sustainability remains an important business priority

The report also examined sustainability-related skills requirements. While sustainability remains an important business priority, demand for large-scale workforce upskilling has moderated compared with previous years. A quarter of businesses expect more than half of their workforce to require sustainability-related training, down from 33% in 2025.

However, organisations continue to identify sustainability skills as important drivers of future growth. Among businesses with more than 50 employees, energy efficiency (76%), policy and regulation (71%) and innovation and creativity (65%) were identified as the leading sustainability-related capabilities expected to support growth over the next two to three years.

The research also highlights persistent barriers to workforce development. Lack of time remains the leading challenge, cited by 45% of businesses and rising to 51% among SMEs. Cost is also a significant factor, with half of all businesses indicating that increased supports and grant funding would encourage greater investment in workforce development.

Learning preferences continue to vary across business types. Micro-enterprises show a strong preference for e-learning, while medium-sized organisations favour trainer-led, in-house programmes, underlining the need for flexible and responsive workforce development solutions.

As Ireland's national workforce development agency, Skillnet Ireland works with government, industry and education partners to anticipate emerging skills needs and deliver practical solutions that support business growth and competitiveness.

The findings of Ireland’s Talent Landscape 2026 will help inform the implementation of Skillnet Ireland's strategy to build next-generation competitiveness through workforce transformation, leadership development, digital and AI adoption, sustainability and enterprise innovation.

The full Ireland’s Talent Landscape 2026 report is available to view, here.