Ireland’s artificial intelligence sector has raised an additional €256M across 75 deals so far this year, with an uptake in office space requirements from the sector helping to reduce vacancy rates by 1% over the same period in 2025.

While AI investment totals are down from the €691M across 107 deals raised in 2025, according to research from PitchBook, the tech funding data firm described the slowdown as “normalisation rather than retreat,” with the median deal value falling to €1.6M this year from €2.4M in 2025, but still higher than in any year before 2025.

Meanwhile, in its latest office update, adviser Colliers said Dublin office vacancy levels had fallen to 13.4% in the third quarter of 2026, as takeup totalled 531K SF across 55 deals.

While this was down approximately 15% on both the previous quarter and the five-year average for the third quarter, the total for the first nine months of 2026 hit 1.6M SF, and more than 1M SF was reserved at the end of Q3, supporting Colliers’ expectations that full-year takeup could approach the 10-year average of 2.5M SF.

OpenAI’s new European headquarters at Tropical Fruit Warehouse was the quarter’s largest transaction, through a lease assignment from TikTok. The second-largest deal was Klaviyo’s lease at One Le Pole Square, followed by flex office operator Pembr, which took the entirety of 16 St. Stephen’s Green.

“PitchBook’s independent analysis shows the scale of investment now going into Irish AI companies, with almost €1B raised since the beginning of 2025,” Enterprise Ireland Chief Executive Jenny Melia said in a statement.

Colliers said space demand remained diverse, spanning technology, media and telecommunications, finance, professional services, retail, flexible offices, and health and pharmaceuticals, helping overall vacancy fall from 13.9% in Q2 and 14.3% a year earlier.

Including deals expected to complete, Colliers estimates that the effective vacancy rate could be as low as 11.4%.

The market received another boost after domestic AI company Tines, which develops workflow automation software for businesses, announced plans to create 100 jobs in Ireland over the next two years and open a new headquarters in the capital later this year.

Tines, which is co-headquartered in Dublin and Boston, has raised $272M from investors including Goldman Sachs, SoftBank, Accel and Felicis, and its most recent valuation was circa $1.1B following its Series C fundraising last year.

Irish-founded technology consultancy Version 1 has also expanded its Dublin presence this year, opening a new headquarters and AI Studio at Four Park Place in March.

“This is more than an office opening. It is a statement of intent," Version 1 CEO Roop Singh said at the time of the announcement. "Our principal belief is that AI enhances human capability, it does not replace it. This studio is where we will prove that."