The tech sector has been through a turbulent time is recent years with many companies alternating between hiring sprees and mass layoffs.
The industry remains a massive employer in this country with the latest Central Statistics Office data showing that the information and communication sector accounts for almost 180,000 jobs.
That figure did fall by 4% in the second quarter of the year driven by a decrease of 16,400 employed in computer programming, consultancy and related activities - a reminder of the volatility that continues within the industry.
When we talk about the tech sector in Ireland, most of us will think of the enormous multinationals that have their European headquarters here like Apple, Microsoft, Intel, Google, Meta and TikTok.
Few will be calling for tax breaks or grants on Budget Day for these multi-billion dollar giants.
But there is also a thriving indigenous tech sector, with new and exciting start-ups emerging every day.
There are plenty of suggestions from these businesses and their representatives about what more the Government could do to support them.
AI adoption supports
Digital Business Ireland (DBI) has warned that the Government must deliver meaningful tax incentives for digital transition and artificial intelligence (AI) adoption in Budget 2026 or risk Ireland falling behind in the competitive tech race.
DBI, a national representative body for digital and online businesses, is calling for the introduction of an Accelerated Capital Allowance (ACA) for investment in AI and digital technologies.
This would allow companies to write off 100% of tax for capital investment in a single year, instead of over eight years as under present rules.
A similar ACA already exists for green technologies.
The representative body is also calling for the introduction of a tiered system of grant support, with varying levels of funds for digital transition to match levels appropriate to enterprises at different sizes and stages of growth.
DBI said there should be increased investment in digital and AI courses, and enhancement of advisory and support for compliance with digital regulation.
"At a time when new technologies such as AI offer unprecedented opportunities for Ireland to become a world leader in the digital space, our businesses cannot afford to fall behind in the digital transition," said DBI National Spokesperson DP Fitzgerald.
"The reality is that digital intensity in Ireland is far too low, particularly among SMEs. Just 74% of SMEs reach basic levels of digitalisation, and less than 30% are adopting advanced technologies such as AI, sophisticated cloud tools, and data analytics."
"That is a competitiveness gap we urgently need to close," Mr Fitzgerald said.
Technology Ireland, the Ibec group that represents the technology sector, has also called for investment in AI training programmes for workers.
In its pre-budget submission, it urged the Government to use the National Training Fund for strategic, large-scale investment to equip workers with advanced digital capabilities.
"As we look toward 2030, the next five years will be pivotal for Ireland and the global economy," said Director of Technology Ireland Una Fitzpatrick.
"Investment in skills and innovation is not a discretionary spend - it is a national imperative.
"The National Training Fund is employers' money, collected to invest directly in workforce transformation. Using it strategically is key to unlocking Ireland’s AI-enabled future," Ms Fitzpatrick said.
Technology Ireland has also called for the swift implementation of the recommendations of Silicon Island: Ireland’s National Semiconductor Strategy.
Changes to tech regulation
The Technology Ireland pre-budget submission includes a call on the Government to simplify the regulatory burdens facing tech companies.
The group said that a complex framework of EU digital and AI-related regulation, has created significant compliance burdens for tech companies - particularly startups and SMEs.
"This risks stifling innovation and eroding Ireland and Europe's competitiveness in the global tech race," Technology Ireland said.
"There is a growing need for simplification, coherence, and predictability in how these rules are implemented and interpreted across Member States."
It added that Ireland, as a leading European tech hub, has a "strategic interest in advocating for a more streamlined and innovation-friendly regulatory environment at the EU level".
Read more: Government urged to simplify regulatory burden on tech sector
Technology Ireland said that while it supports enhancing online safety, the approach taken by Government and regulators over the past few years has created an overly burdensome landscape for business which often goes beyond the spirit of EU law.
"National law which fragments and creates a patchwork of EU frameworks or delays the implementation of rules risks Ireland’s reputation as a trusted regulatory partner in the EU," the group said.
In its submission, Technology Ireland said regulators should be guided to consider the economic impact of their work and plans on the whole economy, and should function in a manner that serves competitiveness and public interest objectives.
Start-up tech companies
According to Scale Ireland, which represents start-up companies, there are 2,099 Irish start-ups and scale-ups employing 45,652 people.
For its pre-budget submission, Scale Ireland joined forces with other organisations in the sector including HBAN, a network of business angel groups and syndicates; IVCA, the representative body for venture capital and private equity firms; Euronext, the pan-European exchange; and TechIreland, an independent not-for-profit which promotes Irish-based innovation.
The 'Alliance for Innovation' said it wants to see greater efforts from the Government to help mobilise private capital, as well as reviews of the effectiveness of current state supports.
The group is also looking for reforms of Capital Gains Tax (CGT) in Budget 2026.
The Alliance said that Ireland’s CGT level is comparatively high compared to that of competitors and this affects the attractiveness of business incentives.
"The Alliance supports the introduction of a lower 20% rate of CGT on gains arising on the disposals of investments in start-up and scaling companies for founders, investors and staff to increase our competitiveness," the submission stated.
"For instance, the introduction of a lower CGT rate on gains on investments in SMEs, whilst leaving the 33% rate in place for gains in investment property, should encourage private capital to invest in productive assets capable of delivering greater employment and economic benefit to the state," it added.
The Alliance is also looking for the establishment of a taskforce to look at unlocking pension fund savings into indigenous companies, the speedy establishment of a new Enterprise Scaling Fund, as well as reforms of the Employment Investment Incentive Scheme (EIIS).
Video game sector
The global video game industry is now worth more than the music and film sectors combined, with the estimated value expected to reach over $385bn (€327bn) in the coming years.
It is thought that Ireland's digital gaming sector could be worth around €250 million.
Video game companies have called for changes to a tax credit for their industry to be announced in next week's Budget.
The Digital Game Tax Credit was launched in November 2022 and offers companies developing digital games a tax credit of up to 32% per qualifying game.
However, take up of the tax credit has been slow amid claims by game studios that its structure is limiting and that reforms are needed to unlock its full potential.
In its pre-budget submission, Imirt, the Irish games representative body, called for improvements to the scheme.
It wants claims to be allowed for partial game development projects, currently only companies that develop and complete the entire game development can qualify for the tax relief.
Imirt is also calling for the cut-off point for qualifying expenditure to be revised to cover post-launch investments and significant content updates.
"While the tax credit has positively signalled support for the industry, its current design limits its practical impact," the Imirt submission states.
"Specifically, it has not stimulated substantial domestic growth, nor foreign direct investment (FDI), due to structural restrictions in its eligibility criteria," the group said.
According to Imirt, allowing claims for partial game development would help Ireland attract strategic foreign direct investment, foster early-stage innovation, and grow a resilient domestic industry with strong career pathways for workers.
It also believes that by revising the cut-off point for qualifying expenditure to include post-launch activity, the tax credit would support the full lifecycle of today’s games, promoting year-round employment and strengthening studio stability.
The big beasts of the IT world have such a prominent presence here that they tend to dominate the narrative when we talk about Ireland's tech sector.
But groups representing smaller, indigenous technology companies and start-ups say supports in Tuesday's budget could help pave the way for the next Apple, Google or Microsoft to come from Ireland.
