ECIPE — European Centre for International Political Economy

A study by ECIPE

Cloud and AI Development Act (CADA)

The real-world economic impact of the Cloud and AI Development Act

Impact by country

Ireland

€2.3bn
10-year exposure, Medium scenario
€1.7bn
One-off migration cost, Medium
€51m/yr
Recurring price effect, Medium

Cost per person in the working-age labour force

Per economically active person (age 20–64), 10-year horizon

Measure Narrow Medium Broad
10-year total economic exposure €335 €856 €1,457
Effect on the real GDP level -€72 -€287 -€652

Annual recurring cloud-service price effects

€ million, 2025 expenditure base

Sector
Scenario Per year 5 years 10 years
Narrow €27m €135m €269m
Medium €51m €253m €506m
Broad €88m €438m €876m

Migration and systems-redesign costs

Present value of one-off transition costs, € billion

Sector
Narrow €590m
Medium €1.7bn
Broad €2.8bn

Ordinary public support

€ million, public sector

Narrow €1.4m
Medium €14m
Broad €45m

Transition scarcity costs

Present value, € million, public and private sectors combined

Narrow €0.4m
Medium €5.2m
Broad €20m

Downstream ICT-vendor exposure

Domestic vendors affected, and annual value added at risk

1
Narrow – vendor equivalents affected
5
Medium – vendor equivalents affected
12
Broad – vendor equivalents affected
€25m
Narrow – annual value added at risk
€101m
Medium – annual value added at risk
€229m
Broad – annual value added at risk

Combined delayed cloud and AI benefits

€ billion, forgone productivity gains

Narrow €2.7m
Medium €33m
Broad €107m