Fine Gael considers ‘AI dividend tax credit’ for businesses

Fine Gael will discuss a possible tax credit for businesses that provide AI training and support for staff to move to new roles as part of a set of proposals on the technology.The party has published a document authored by Dublin Bay South TD James Geoghegan titled “Shaping Ireland’s AI Transition”, which will be discussed at its ardfheis at the weekend.Proposals include setting up a national AI tax observatory that would publish an annual analysis of AI’s impact on income tax, corporation tax, capital taxation, employment and sectoral exposure, with a mandate for it to input in to the budgetary process.The party also proposes to explore an “AI dividend tax credit” that would be linked to investment in workers in the form of a “time-limited credit for qualifying businesses that provide meaningful AI training” as well as supporting staff moving into new roles or “sharing productivity gains”.READ MOREDuring a press conference on the paper, Geoghegan also said the cost of AI is growing, and small businesses are impacted by this.He said if tax measures could alleviate that and ensure small businesses have access to AI, “that’s something that should be introduced”.The document suggests that a citizens’ assembly on AI “could give people from across Ireland the time, evidence and public platform to consider difficult trade-offs and make recommendations”.Geoghegan said Ireland has been quite successful in dealing with complex issues through citizens’ assemblies in the past.It also proposes making AI literacy a national priority and developing a common AI safety and privacy standard for schools, among other measures.[ How graduates can turn AI to their advantage in a job huntOpens in new window ]The document says Fine Gael’s starting point is that “Ireland should embrace innovation while putting people first” and “this means practical training, responsible use of AI, a strong voice for workers and a fair share of the benefits”.It says the proposals are “options to test, develop and debate, not instructions to Ministers or commitments of Government”.Asked about protections for staff in instances where employers are pushing ahead with introducing AI, Geoghegan offered the example of Singapore where “large employers are working with employees on transition agreements, so that the worker and the employer is working hand in glove together”.He said Bank of Ireland is working with its employees on AI and “I think we need to see more of that because if you want to bring the benefits that AI are going to bring, you need to bring the workforce with you, and that’s a key part of this”.On reports that the Dutch government plans to cut 25,000 public sector jobs through the use of AI, Geoghegan said: “Ireland is taking a materially different approach to the Netherlands when it comes to AI introduction in the public service.”[ Most compliance experts think AI now being used for financial fraudOpens in new window ]He added that the focus here is on “key areas where the introduction of AI could actually not result in less jobs in the public service, but could actually enhance how citizens engage with the State.“I really think that’s where the focus should be, not about efficiencies or culling jobs within the public service or indeed in the private sector.”