The Department of Enterprise, Tourism and Employment (DETE) published the General Scheme of the Regulation of Artificial Intelligence Bill 2026 on 4 February 2026 (the Scheme). The Scheme forms the basis for the national Irish legislation which will implement certain aspects of the EU AI Act into Irish law.
We set out below some points to note resulting from the Scheme.
Link to New AI Office – Oifig gIS na hÉireann New AI Office – Oifig gIS na hÉireann
The Scheme proposes to establish a new independent statutory body called ‘Oifig Intleachta Shaorga na hÉireann’ or the ‘AI Office of Ireland’ (the Office). The Office will serve as Ireland’s central coordinating authority and single point of contact for implementing and enforcing the EU AI Act.
In addition to enforcement, the Office is tasked with promoting responsible AI innovation, literacy, and adoption. This includes hosting a centralised pool of technical expertise in AI technologies and legal and regulatory affairs. The Office is therefore intended to provide access to a framework of expertise, ensuring Market Surveillance Authorities (MSAs) have the resources needed to fulfil their mandates. The AI Office will also be responsible for ensuring the creation of an ‘AI Regulatory Sandbox’ accessible to SMEs and start-ups. Sandboxes are designed to facilitate the development and testing of innovative AI systems under strict regulatory oversight before the AI systems are put into use. The sandbox is intended to promote AI Innovation and the Scheme provides that the Office can either establish a national sandbox or ensure Ireland’s participation at an EU level sandbox.
Notably, the Scheme specifies that the Office does not currently have a specific sector of supervision. This means that, at least initially, the Office will not itself operate as an MSA.
The Office’s governance structure is modeled on existing statutory bodies such as the Workplace Relations Commission, with the Scheme’s provisions drawing heavily from the Gambling Regulation Act. The day-to-day operations of the Office will be led by a CEO, appointed by the Minister of DETE. The CEO will report to an independent board consisting of seven members.
The Scheme anticipates that the Office will be established by 1 August 2026.
Link to Market Surveillance Authorities Market Surveillance Authorities
Competences
Ireland had already announced its intention to create a distributed model of MSAs. The explanatory notes to the Scheme set out that additional designations will be made via Statutory Instruments. The Scheme provides some more nuanced information on the competences of certain MSAs, as set out below.
Central Bank of Ireland (CBI): Responsibility for prohibited and high-risk AI systems used by financial institutions regulated by financial services law.
Coimisiún na Meán: Responsibility for online platforms (as defined by the EU Digital Services Act), and audiovisual media services and sound broadcasting services (as defined by the Broadcasting Act 2009, as amended), in relation to certain prohibited practices and transparency requirements under Article 50 EU AI Act.
Commission for Regulation of Utilities: Responsibility for high-risk AI systems relating to supply of water, gas, heating or electricity.
Commission for Communications Regulation (ComReg): Responsibility for high-risk AI systems relating to digital infrastructure (and Radio Equipment Directive).
Data Protection Commission: Responsibility for certain prohibited practices and certain high-risk AI systems, connected to certain biometric and law enforcement use cases.
Health Service Executive: Responsibility for access to and enjoyment of essential public services and benefits related to essential public health services and emergency triage.
National Transport Agency: Responsibility for high-risk AI systems used in relation to road traffic.
Workplace Relations Commission: Responsibility for high-risk AI systems used in employment, workers’ management and access to self-employment and the prohibition of inferring emotions in the workplace.
The Scheme acknowledges the complex nature of implementing a consistent and effective administrative sanction enforcement regime and notes its expected reliance on European Commission guidance regarding the practical implementation of the EU AI Act’s enforcement provisions, including classification on the roles and responsibilities for MSAs.
Powers
The MSAs’ powers include the ability to:
- require the production of relevant documents and supply chain details;
- conduct unannounced on-site inspections and physical checks (which may also be performed remotely);
- initiate own-initiative investigations;
- order economic operators to bring products into compliance; and
- acquire product samples using a cover identity.
Notably, the Scheme sets out that the CBI will use its existing administrative and market surveillance powers in relation to its EU AI Act supervisory role.
While the Scheme does not expressly create a new power for MSAs to impose a levy, it provides that where an MSA already imposes a levy to fund its work, it may also impose a levy on the entities for which it is designated as the competent authority under the Scheme.
Link to Penalties Penalties
The Scheme transposes the comprehensive enforcement regime established by the EU AI Act, and it empowers MSAs to impose substantial administrative fines. Penalties for the most severe offenses can reach up to €35,000,000 or 7% of total worldwide turnover, whichever is higher. The Scheme also introduces a specific cap for public bodies, limiting their fines to €1,000,000.
To impose a financial penalty, an authorised officer from the MSA must refer the matter with a report to an independent adjudicator (such adjudicators will be appointed by the DETE Minister on recommendation from the Office). If the adjudicator confirms the findings from the MSA officer’s report, the adjudicator has the authority to order the cessation of the breach, mandate specific remedial measures, and determine the financial penalty. For this adjudication to take effect certain additional procedural steps are required (e.g., the adjudicator must provide the MSA and the person to whom its decision relates with a copy of the decision and will invite them to provide written submissions in relation to the same).
Link to Next Steps Next Steps
The General Scheme is currently undergoing pre-legislative scrutiny by the Oireachtas Committee on Enterprise, Tourism and Employment. Upon completion, the committee will produce a report and lay it before the Houses of the Oireachtas. This report will outline recommendations for the bill based on the scrutiny process. Following this, the Government will proceed to draft the formal bill, which must then be passed by the Oireachtas (the Irish Parliament) to be enacted into law.
For further information in relation to the AI Act please contact John Cahir, partner, Aideen Burke, partner, Chris Bollard, partner, Dr Stephen King, partner, Andrew Sheridan, partner, Irina Vasile, senior associate, or your usual ALG Technology contact.
ALG has also published a more detailed guide to the AI Act which is accessible here
Thanks to Laoise Claffey for her contribution to this article.