Artificial intelligence presents an opportunity for Central and Eastern Europe to enhance the competitiveness, innovation, and productivity of its businesses. To achieve this, countries in the region should focus on implementing a unified AI development strategy tailored to local needs, according to a report by the CEE Digital Coalition, which analyzes the current and future state of AI technology in the economy. Experts recommend specific measures, including the creation of a regional AI supercluster, a joint AI fund, and grant programs for entrepreneurs investing in AI.

The CEE Digital Coalition is a group of digital industry organizations from across the region working together to strengthen the digital voice of Central and Eastern Europe in the European Union. Digital industry experts from 14 countries and tech companies operating within the Coalition have prepared recommendations for AI development in the region. “As Central and Eastern European countries, only together do we have the strength to lead the EU’s AI-driven digital transformation. We have a concrete action plan, which we are presenting to the region’s governments. All we need now is the courage to put it into practice,” says Michał Kanownik, President of Digital Poland Association, one of the leaders of CEE Digital Coalition

A Roadmap for AI Development in Central and Eastern Europe
In the “CEE AI Challengers” report published by the CEE Digital Coalition, experts emphasize that creation of a unified AI development strategy for the region should be the starting point. A practical proposal is the establishment of a joint regional AI supercluster to accelerate the adoption of AI in industry, public administration, and the private sector. The report notes that processing complex AI tasks requires substantial computing power, which may be unattainable for small, individual countries in the region.

Furthermore, the industry argues that a consistent regulatory approach is essential. The harmonized implementation of AI standards and regulations is key to enabling businesses to operate efficiently across the region. The report also suggests the implementation of supportive mechanisms, such as “regulatory sandboxes”—legal frameworks that allow businesses to test projects in a safe environment under relaxed regulations.

Creation of a shared data infrastructure, a unified data exchange system for AI development in Central and Eastern Europe, is equally important according to the Report. Experts advocate for standardizing technical specifications to help regional AI firms expand globally.

According to Michał Kanownik, now is a critical moment to take action, especially as Poland currently holds the presidency The of the Council of the EU. “We have more influence now. We’re working to make the most of this opportunity and amplify the voice of Central and Eastern Europe in the EU,” he says.

Social Distrust a Barrier to AI Adoption
The report’s authors highlight significant opportunities for the region stemming from embracing AI and approaching its implementation wisely. In their view, Central and Eastern European countries can easily boost the competitiveness, innovation, and productivity of businesses. Recent data shows that AI is becoming a key development factor, although adoption rates vary depending on company size and between EU countries.

The report notes that Central and Eastern European countries outperform Western Europe in terms of the number of companies in the digital sector (3.9 ICT firms per 1,000 inhabitants compared to 2.1 in Western Europe) and ICT employment share (4.8% vs. 4.1%). However, experts warn that the region still lags in terms of digital transformation. The use of advanced technologies like cloud computing and big data analytics remains relatively low—and the same applies to AI adoption. According to Eurostat, by 2024, over 11% of small, nearly 21% of medium, and as many as 41% of large companies in Europe had adopted AI technologies. “We are still struggling with a degree of social distrust,” comments Michał Kanownik. “No other technology today raises as many questions and emotions as AI. Just as we once got used to electricity, steam engines, and the Internet, now we must learn to understand and harness AI for the benefit of the economy and society. That is the major challenge we face as a region,” emphasizes the Digital Poland’s president.

The roadmap for AI development in Central and Eastern Europe was presented this week at the EU forum in Brussels during a conference dedicated to artificial intelligence. The digital industry now aims to persuade ministers of digital affairs and prime ministers across the region to adopt its proposals.

Read the report here