The Creative & Communications Association has called on the Government to introduce a new innovation tax credit for the creative industries and direct more of the National Training Fund towards AI and digital skills as part of its pre-Budget 2027 submission.
The industry body, formerly known as the Institute of Advertising Practitioners in Ireland, has also proposed the establishment of a dedicated Policy and Evidence Research Centre for the creative industries, backed initially by €1 million in State funding.
The pre-Budget submission argues that advertising and communications should be treated as a strategic economic sector alongside areas such as technology, financial services and life sciences. It also says that existing State innovation supports do not adequately reflect investment in areas such as design, AI, digital transformation and new business models.
Forthcoming research commissioned by the association estimates that Ireland’s creative and communications services sector supported approximately €1.5 billion in gross value added, 18,300 jobs and €1 billion in wages in 2025, including its direct operations, supply chain and spending by employees.
The association also estimates that approximately €1.7 billion in advertising and communications investment during 2025 was associated with €5.1 billion in gross value added, 66,100 jobs and €2.6 billion in wages across the wider economy.
Siobhan Masterson, CEO of the Creative & Communications Association, also said the economic debate around artificial intelligence needed to extend beyond the technology itself.
“The conversation around AI can become dominated by the technology itself, but the businesses that succeed will be those that invest just as seriously in their people and how they use it.
“AI can make businesses faster and more efficient, but it cannot replace the human judgment that makes communications effective. Ireland has a real opportunity to lead the way on combining AI adoption with its existing creative talent, but that will require deliberate investment,” she said.
The submission argues that advertising remains an underused driver of business growth in Ireland.
According to forthcoming research, carried out by the Creative & Communications Association, the median Irish organisation in its sample invested approximately 1% of revenue in communications and advertising, compared with 2.3% among the European benchmark and 2.8% in the US.
Advertising expenditure per person in Ireland was approximately €268 in 2024, well below levels recorded in several comparable international markets.
The pre-Budget submission, also notes that Ireland currently invests just 0.35% of GDP in advertising, compared with an EU average of 0.59%, placing it 50th out of 57 countries internationally. The Government is being advised that reaching the EU average could grow the Irish market from €1.7 billion to more than €3 billion.
While the association cautions that these benchmarks should not be regarded as universal spending targets, it says the scale and consistency of the gap suggests many Irish businesses may be investing below the level required to support their growth and international ambitions.
One of the central proposals in the submission is the introduction of an Innovation Tax Credit that would broaden the definition of innovation beyond traditional scientific and technological research and development.
The Creative & Communications Association argues that creative and communications companies are making substantial investments in areas including AI-enabled tools, digital products, new methodologies, governance frameworks, audience engagement, live experiences and proprietary intellectual property, many of which fall outside existing State supports.
Its proposed tax credit would cover areas including design and creative innovation, process and business-model innovation, digital transformation and AI adoption, new communications and content-delivery models, and proprietary intellectual property, tools and methodologies.
Masterson said existing innovation policy needed to reflect the way businesses now create value.
“Government innovation supports have served us well, but they haven’t kept pace with how modern businesses actually innovate. Creative and communications businesses are growth partners for the wider economy in that they help Irish companies develop their identity, reach customers, enter new markets and turn good products into commercially successful businesses.
“At a time when competitiveness and productivity are at the centre of the economic debate, Budget 2027 must recognise that investment in creativity is an investment in business growth,” she said.
The association cites forthcoming research among a subset of its members which estimates profit returns ranging from approximately €1.50 to €4.60 for every €1 invested in creative and communications services.
It also points to international rankings which, it says, place Ireland 26th of the 27 EU member states for design applications, last for trademarks and 44th of 139 countries on the Knowledge Creation pillar of the KPMG Innovation Index 2026.
The second major strand of the submission focuses on skills and the National Training Fund.
The Creative & Communications Association says creative and communications businesses have been among the earlier adopters of generative AI, deploying the technology across content production, media planning, audience analytics and campaign optimisation.
It wants the Government to direct a meaningful proportion of the National Training Fund towards structured programmes covering AI capability, data literacy, digital production and strategic planning.
The association notes that employers contribute 1% of payroll to the fund through PRSI and says it currently has a surplus of approximately €2 billion, with annual surpluses of between €200 million and €400 million expected up to 2030.
It has also backed the proposed €10,000 AI training voucher for SMEs, saying it would provide direct assistance to businesses seeking to adopt AI productively and responsibly.
The third proposal calls for the establishment of a Policy and Evidence Research Centre for the Creative Industries to build a stronger evidence base around the economic contribution of the sector.
The proposed centre would examine areas including employment, productivity, exports, investment and the regional distribution of the creative industries, while also carrying out research and providing policy advice on AI, intellectual property, skills, sustainability, access to finance and internationalisation.
The association proposes that it should be hosted by an Irish higher-education or independent research institution rather than established as a new State agency.
It is seeking €1 million in Budget 2027 for a design and feasibility phase, followed by competitive multi-annual funding for an initial five-year programme.
The organisation has also argued that stronger investment in the sector would have consequences beyond agencies themselves, pointing to advertising’s role as a principal source of revenue for Irish broadcasters, publishers and digital media companies and, by extension, in supporting journalism and cultural production.
The association says its Budget 2027 proposals could be delivered largely through existing Revenue and Department of Enterprise structures without the need to create additional administrative systems.
