At the core of the Government’s recently published Summer Economic Statement was the perception of prudence. We heard plenty about the need to rein in spending, highlighted by a 6 per cent spending-growth ceiling imposed for 2027.Since Ireland’s economic fortunes have soared in recent years, we have effectively operated outside the scope of EU fiscal rules. Government debt is half the 60 per cent GDP target set out by the EU, and the State continues to run large budget surpluses. As a consequence, EU fiscal rules allow substantial flexibility for Irish budgetary spending plans. As the Irish Fiscal Advisory Council has noted, there is no credible threat that the EU will impose outside constraints on the Irish budget anytime soon. Our budgetary “rules” in recent times are therefore self-imposed. Yet they have frequently been breached. Spending ceilings have been exceeded every year since the last fiscal-rule target was introduced in 2021.The business community knows better than most about the fragility of forecasting future corporate tax receipts and the perils of over-reliance on that source of tax revenue. It therefore fully supports policy efforts to deliver sustainable public finances, including managing expenditure and broadening the tax base. The business community is also fully aware of the changes AI will bring to every sector, both domestic and global, and the growing demand to have a workforce that can respond to these changes.It seems, however, that this investment in our workforce will never win out in terms of political prioritisation when competing against unplanned overruns in big-spending departments, or short-term and popular demands. When it can’t be prioritised within the fiscal rules, sacrificing critical AI skills investment for an arbitrary spending rule isn’t just bad economics, it makes no sense to business leaders.This frustration is compounded by the fact the State is currently sitting on a pre-funded, €2 billion AI-readiness “war chest” that it fails to deploy. This money has already been collected through a 1 per cent employer payroll levy for every employee in the State - a levy created with the explicit purpose of addressing future skills shortages. Driven by the recent surge in employment, the National Training Fund is overflowing.Policymakers across the system agree that increasing investment in upskilling and education to prepare workers for the challenges and opportunities of AI is the right move. However, delivery momentum collapses when it comes to acting within these arbitrary, self-imposed fiscal rules.The solution is straightforward. The pre-funded National Training Fund surplus should be put to work immediately outside the Government’s existing fiscal framework as an exceptional expenditure and investment item. In doing so, the Government can adhere to its core 6 per cent expenditure rule without raising additional taxes, while demonstrating real ambition in preparing our workforce for AI.The prize for swift delivery is substantial, but the cost of ongoing inaction is frightening. AI disruption and its impact on the labour market is the single biggest topic on which CEOs are currently engaging with Ibec. Despite widespread narratives and anecdotes suggesting AI is replacing labour – and particularly hurting graduate employability – we are not seeing hard evidence of this yet.In reality, 100 per cent of workers will be impacted by AI in some form due to the sheer scale of technological disruption taking place. In terms of overall jobs, the picture remains fairly stable in the short term, but we must be honest about longer-term realities.A recent poll of our CEOs showed that planned hiring intentions for the second half of this year are stronger than last year, and nine out of 10 CEOs reported that AI is not currently impacting hiring plans. Looking out over the next five years, however, two-thirds of CEOs expect AI to alter hiring – some positively, but most negatively. Beyond workforce skills, AI is also driving broader business disruption through a surge in AI-related start-ups.Economic history shows that technological advancements consistently yield greater opportunity than threat. AI will be no different; new skills, occupations and businesses will flourish as economies embrace these productivity gains. However, the pace of disruption in our workplaces will be unprecedented. The recent Ibec-Accenture AI skills report found that 64 per cent of roles will require significant reskilling, demanding a rewiring of our education system at all levels.If Ireland manages this well, we can gain a competitive edge over other economies struggling to adjust. If we fail to deliver, we will fall behind in our attractiveness for foreign direct investment and in the competitiveness of our indigenous sectors.Businesses, the training ecosystem and the further and higher education sectors are primed and ready to deliver on the AI opportunity if funding is deployed.Ireland’s internationally acclaimed Skillnet Business Networks currently cannot keep pace with the demand for enterprise-led training programmes, while retraining initiatives such as Skills to Advance and Springboard+ remain chronically underfunded. Furthermore, the higher-education sector continues to be starved of resources and will struggle to meet national AI education needs unless its core-funding model issues are resolved.The Government’s October AI Summit is set to be a centrepiece of Ireland’s EU presidency, with global AI leaders watching closely. To make a lasting impression, Ireland’s AI readiness – specifically our AI skills programme – must be world-leading, positioning the State as a top destination for AI deployment.While businesses hope policymakers champion this ambition, if illogical prudence holds firm, employers will rightly demand that the €2 billion National Training Fund surplus be returned to them to help offset rapidly rising labour costs and fund reskillingFergal O’Brien is an economist and executive director of policy, lobbying and global affairs at Ibec.