A new report authored by academics at Queen's University Belfast has called on Northern Ireland's policymakers to urgently prioritise an Artificial Intelligence (AI) strategy.

The study, produced for the Northern Ireland Productivity Forum, warns that while AI offers transformative potential for the local economy, the region faces unique risks due to its reliance on low-productivity sectors.

Launched during National Productivity Week, the report—Harnessing AI to boost Northern Ireland's productivity—argues that AI could significantly raise growth in knowledge-intensive sectors and support public sector reform. However, it notes that Northern Ireland's workforce is more exposed to job displacement than the rest of the UK because of a higher concentration of low-paid occupations.

The authors recommend that instead of attempting to compete at the frontier of global AI development, Northern Ireland should adopt a "smart second-mover" strategy. This involves learning from international successes and focusing on creating a world-leading environment for the wide-scale adoption of AI across all businesses.

Economy Minister Caoimhe Archibald, who opened the launch event, confirmed that productivity remains a core objective for her department. She revealed that the newly established AI Advisory Panel has held its first meeting to explore how best to support local businesses in adopting these technologies.

Key Recommendations

The report, co-authored by Professor John Turner, Dr David Jordan, Ruth Donaldson, and Seán McDonald, outlines several critical pathways for the region:

• For the NI Executive: Implement a strategy led by the Executive Office built on three strands: supporting adoption, transforming public services, and providing productivity-centred advice.

• For Businesses: Invest in "complementary assets," such as improved management practices, to ensure they can keep pace with technological shifts.

• For People: Focus on a lifelong learning and digital skills strategy to ensure the workforce remains adaptable to AI-induced changes.

Co-author Professor John Turner issued a stark warning regarding the urgency of the situation: "Northern Ireland missed out on the productivity boon that came with the ICT revolution in the 1990s. For the sake of our children and grandchildren, it cannot afford to miss the productivity gains that the AI revolution is ushering in."

Dr David Jordan added that better productivity would not come from adopting AI in isolation. He emphasised that improving management practices and investing in broader business assets are essential factors that will determine whether local firms can successfully integrate the technology.

The report concludes that Northern Ireland's ability to close its long-standing productivity gap will ultimately depend on how effectively AI interacts with the region's existing economic drivers.