A Practical Guide for Irish Companies Navigating AI, Compliance & Innovation
What Is AI — and Why It Matters to Your Business?
Artificial Intelligence (AI) refers to machines programmed to think, learn, and perform tasks that mimic human cognition — from understanding language to detecting fraud. It’s no longer just for tech giants: AI is quietly powering workflows across Irish businesses of all sizes.
According to PwC Ireland’s 2024 GenAI Business Leaders Survey, 98% of Irish business leaders say they’ve initiated their AI journey — but just 6% have deployed AI at scale, with the majority still experimenting via pilots, sandbox testing and security. Understanding its types, risks, and governance is no longer a technical concern — it’s a business imperative.
Classifying Intelligence: Narrow to Superintelligent
Before you assess risk, it helps to clearly understand what type of AI you’re using—and what it’s capable of.
| Type | Full Name | Description | Examples |
| ANI | Artificial Narrow Intelligence | AI designed to perform a specific task extremely well. It cannot generalize beyond its programming. | ChatGPT, Siri, Netflix recommendations, Gmail spam filters, Tesla Autopilot |
| AGI | Artificial General Intelligence | Hypothetical AI that can understand, learn, and apply knowledge across a wide range of tasks—just like a human. | Not yet realised; envisioned as human-like robots or universal assistants |
| ASI | Artificial Superintelligence | A theoretical AI that surpasses human intelligence in every domain—logic, creativity, emotional intelligence. | Still speculative; imagined in sci-fi as systems that solve global challenges or govern autonomously |
Functional Classifications of AI
| Type | Description | Example |
| Reactive Machines | Respond to current inputs only; no memory or learning. | IBM Deep Blue (chess AI) |
| Limited Memory AI | Can learn from past data to improve decisions. | Self-driving cars, chatbots |
| Theory of Mind AI | Understands emotions and intentions (still in development). | Emotion-aware robots (future) |
| Self-Aware AI | Possesses consciousness and self-awareness (purely theoretical). | Sci-fi AI like HAL 9000 or Ex Machina |
What Is Generative AI—and Where You’re Already Using It
Among the most transformative forms of AI today is Generative AI—a type of narrow AI that creates original content like text, images, music, video, or code. It’s not just for tech companies; it’s reshaping how businesses communicate, design, and innovate.
Generative AI models use deep learning techniques like:
- Transformers (e.g., GPT-4, Gemini): Generate text and understand context
- GANs (Generative Adversarial Networks): Create realistic images
- Diffusion Models: Generate visuals by reversing noise patterns (used in DALL·E and Midjourney)
Everyday GenAI Use in Workplaces
| Category | Tool | Function / Use |
| Text Generation | ChatGPT, Copilot | Drafting emails, summarising meetings |
| Image Generation | Midjourney | Creating concept art, product visuals |
| Document Automation | Canva AI | Designing branded posts and reports |
| Audio & Video | Descript | Editing podcasts via transcription |
| Code Assistance | GitHub Copilot | Auto-completing and suggesting code |
These tools are already shaping how teams communicate, create, and optimise daily workflows.
Understanding Your Obligations
Many businesses struggle to define their role under the Act. Here’s how to get clarity:
AI Provider vs. Deployer
- Provider: You build or train AI models.
- Deployer: You use third-party AI tools (like chatbots or analytics) in your products or services.
Most Irish firms are deployers, using tools like ChatGPT, Copilot, or analytics systems integrated into CRMs and websites.
Risk Classification: What Triggers Regulatory Requirements?
The EU AI Act defines obligations based on risk level:
| Risk Level | Description |
| Unacceptable | Prohibited practices (e.g. social scoring) |
| High Risk | Credit scoring, recruitment, biometric ID |
| Transparency | Chatbots, synthetic media, deepfakes |
| Minimal Risk | Most productivity AI tools |
To stay compliant, businesses must identify what use cases apply—and ensure appropriate controls are in place.
Key Dates: Ireland’s Rollout Timeline
| Milestone | Effective Date |
| Ban on prohibited practices | February 2025 |
| Appointment of regulatory bodies | August 2025 |
| High-risk use cases enforcement | August 2026 |
| High-risk products enforcement | August 2027 |
Ireland’s implementation follows a distributed enforcement model—with sector regulators (e.g. Data Protection Commission, Health & Safety Authority) managing AI oversight in their domains, coordinated by a newly appointed lead AI regulator.
Security Risks with GenAI Tools
Even platforms with strong credentials—like OpenAI—present risks if ungoverned:
- Data Retention: Prompts and files may be stored for up to 30 days
- Access Controls: Authorised staff and subprocessors may access inputs
- Training Use: Requires opt-out for exclusion from model improvement
Compliance includes not just legal risk—but protection of sensitive customer, employee, and operational data.
Safeguard Checklist: Three Practical Steps
Classify & Encrypt Sensitive Data
- Use Microsoft Purview to tag sensitive assets.
- Store encryption keys securely with something like Azure Key Vault or equivalent.
Secure Your AI Environment
- Apply Private VNets to isolate AI tools.
- Use Role-Based Access Controls (RBAC).
- Enable Private Endpoints to restrict public traffic.
Build a Governance Framework
- Appoint an AI Compliance Lead.
- Introduce stage-gate reviews in software product development.
- Run ethics workshops and AI literacy sessions for teams.
How IT Partners Like Newtec Can Help
| Intervention | Benefit |
| Private VNets & Azure Firewall | Shields AI endpoints from the public internet |
| Network Security Groups (NSGs) | Restricts traffic sources and protocols |
| Continuous Penetration Testing | Identifies vulnerabilities before they’re exploited |
| Data Loss Prevention (DLP) Integration | Prevents accidental exposure of Personal data with AI |
Turning Regulation into Business Advantage
The EU AI Act isn’t just about avoiding penalties—it’s a framework for building trust, resilience, and competitive edge. Irish companies that act early can protect sensitive data, formalise responsible AI use, and unlock scalable innovation.
Ready to Future-Proof Your AI Strategy? Partner with Newtec Services to deploy secure, compliant systems tailored to your business. Contact us here or call: 01 531 3777
Let’s make AI work for you—securely and responsibly.
Newtec Services is ISO 27001:2022 Certified in Information Security Management and Forrester Certified in Zero Trust Security.
Sources & Further Reading
- PwC Ireland – GenAI Business Leaders Survey 2024 https://www.pwc.ie/reports/gen-ai-business-leaders-survey.html
- EU AI Act – Ireland’s Implementation Guide https://enterprise.gov.ie/en/what-we-do/innovation-research-development/artificial-intelligence/eu-ai-act/
- Arthur Cox – Governing AI in Ireland https://www.irishlegal.com/articles/arthur-cox-report-finds-many-irish-businesses-unclear-on-new-ai-law-obligations
- Law Society Gazette – Firms Unclear on AI Obligations https://www.lawsociety.ie/gazette/top-stories/2025/june/many-firms-unclear-on-ai-obligations/
- OpenAI – Security & Privacy https://openai.com/security-and-privacy/
- OpenAI – Data Usage for Consumer Services FAQ -https://help.openai.com/en/articles/7039943-data-usage-for-consumer-services-faq
- Microsoft Azure Blog – GenAI Security Best Practices https://techcommunity.microsoft.com/blog/azurearchitectureblog/security-best-practices-for-genai-applications-openai-in-azure/4027885
- Microsoft Purview Overview https://learn.microsoft.com/en-us/purview/overview
- Azure Key Vault Overview https://learn.microsoft.com/en-us/azure/key-vault/general/overview
- Google Cloud Vertex AI – Security Overview https://cloud.google.com/vertex-ai/docs/security-overview
