SME Digitalisation: Minister Burke announces €23 million to extend digitalisation services for SMEs

Ireland is doubling down on digital transformation with a major new investment aimed at smaller businesses and public bodies. The latest gov.ie announcement confirms that €23 million will be allocated to extend digitalisation services for SMEs through Ireland’s network of European Digital Innovation Hubs.

Announced by Minister for Enterprise, Tourism and Employment Peter Burke, the funding will support Phase 2 of the programme from 2026 to 2029. The move is designed to help Irish SMEs and public service organisations adopt artificial intelligence, automation, cybersecurity and other advanced tools that can improve productivity, resilience and long-term competitiveness.

gov.ie confirms €23 million boost for SME digitalisation

According to gov.ie, Ireland’s four European Digital Innovation Hubs, known as EDIHs, will continue operating as practical access points for businesses seeking expert support with digital adoption. These hubs are FactoryXChange, Data2Sustain, ENTIRE and CeADAR.

The expanded programme is expected to deliver:

• More than 3,000 business and public sector engagements
• 1,100 Test Before Invest projects
• Over 200 training courses nationwide
• Specialist guidance on AI, cybersecurity, sustainability and automation

The initiative is backed through national funding alongside the EU Digital Europe Programme, showing how Ireland is aligning local enterprise policy with wider European innovation goals.

How the digital innovation hubs will support Irish business

The new gov.ie funding announcement matters because many SMEs still face barriers when trying to adopt new technology. Cost, skills shortages and uncertainty around return on investment often slow progress. The EDIH model is designed to solve that by offering a one-stop shop for digitalisation supports.

Services typically include:

• Access to technical expertise and testing environments
• Advice on funding and investment options
• Training and upskilling for staff
• Connections to the wider innovation ecosystem in Ireland

For firms engaging with Enterprise Ireland, IDA Ireland and wider state supports, the hubs can act as an entry point into advanced digital capability. This is especially relevant as sectors linked to Finance, Housing, Health, Education, Climate Action and Transport increasingly rely on smarter systems and data-led decision-making.

The four hubs and their specialisms

Each of the four hubs serves a different but complementary role:

• CeADAR: focused on AI adoption and machine intelligence
• FactoryXChange: supports manufacturing and factories of the future
• ENTIRE: helps firms use IoT, sensors and cybersecurity tools
• Data2Sustain: concentrates on sustainability, circular economy and operational transformation

Minister Burke also welcomed the European Commission’s STEP Seal recognition for FactoryXChange and CeADAR, highlighting their performance in supporting innovation and advanced technology adoption.

Why this gov.ie investment is significant

This gov.ie funding update signals more than a routine extension. It points to a strategic effort by the Department of the Taoiseach and the Department of Enterprise, Trade and Employment ecosystem to future-proof Irish enterprise. As the Revenue Commissioners, Health Service Executive (HSE), National Transport Authority (NTA), Workplace Relations Commission (WRC) and other public bodies continue modernising services, the demand for digitally capable suppliers and partners will only rise.

For SMEs, that means digital readiness is no longer optional. Support through these hubs can make it easier to trial solutions before committing capital, reduce risk and improve competitiveness in both domestic and export markets.

Conclusion

The new gov.ie backed €23 million investment gives Ireland’s SMEs a stronger pathway into AI, automation, cybersecurity and sustainable innovation. By extending the EDIH programme through 2029, the State is giving businesses practical tools to test, learn and scale with confidence. For any organisation considering its next step in digital transformation, this gov.ie announcement is a clear sign that support is available and the time to act is now.

Article/Image Courtesy: gov.ie