Blog

Artificial Intelligence era in Serbia: State of play and opportunities


I am not an expert on artificial intelligence (AI), but as someone interested in technological innovations and community building, I’d like to share my thoughts on the current state of the AI scene in Serbia. This blog post aims not only to shed light on who is developing and using AI in our country but also to highlight the benefits this technology can offer. It’s also important to break the stereotypes that often arise when it comes to AI and explain why it’s crucial for everyone, including those without technical knowledge, to engage in conversations about its application. 

In the following, I won’t dive into what artificial intelligence is, but instead, I’ll focus on its practical uses and the growth of the community around it. This blog post offers insight into the AI landscape in Serbia, particularly highlighting startups working on AI technologies and the support systems and events that promote their practical application.

Before I get to the main point, let’s first analyze why, in recent years, we’ve been talking so much about artificial intelligence.  

How AI is reshaping human lives and habits

Artificial intelligence isn’t only reshaping business—it’s also profoundly influencing daily life and human habits. AI technologies are omnipresent in our lives, often without our explicit awareness, and their use is growing and becoming more sophisticated.

To illustrate this more clearly, let’s look at one of the most notable examples—how AI is changing the way we consume media. Netflix, Spotify, and similar platforms leverage AI algorithms to study our habits and preferences, offering tailored recommendations as a result. These algorithms learn from our choices, becoming more accurate with every click, tailoring content to our tastes. This doesn’t just alter how we interact with technology—it reshapes our daily routines, affecting how we spend our leisure time, what movies we watch, what books we read, and what music we enjoy. 

Artificial intelligence is transforming how we learn and approach education. One example is its ability to personalize learning experiences through intelligent educational platforms. These platforms analyze each student’s learning style, identify their strengths and weaknesses, and then adapt materials and tasks to ensure optimal progress. For instance, students having difficulty with specific math concepts can access additional resources and personalized exercises. This helps them learn at their own pace, boosts their achievement, and minimizes the stress tied to conventional teaching approaches. AI is helping to bridge gaps in education by making it accessible to those previously left out, whether due to geographic constraints or limited resources. With online courses and AI-powered tutors, learning is becoming more inclusive, paving the way for positive long-term effects on the global economy and society.

These examples are only a glimpse of the broad spectrum of opportunities that AI provides. From combating climate change to discovering new drugs, artificial intelligence holds the potential to tackle global issues. Not only does AI enhance our daily lives, but it also plays a crucial role in the advancement of humanity, enabling us to solve complex problems in ways that were unimaginable just a few years ago. That’s why we often encounter the statement by Andrew Ng – “Artificial intelligence is like the new electricity.” He said- “Just as electricity transformed almost everything 100 years ago, today I actually have a hard time thinking of an industry that I don’t think AI will transform in the next several years.” 

What does a developed AI ecosystem look like?

A developed AI ecosystem is characterized by strong collaboration between key stakeholders, including organizations, the government, startups, and educational institutions. In such an ecosystem, national AI initiatives, research institutes, and technology parks provide support for the development of AI technologies and their application in industry.

The government plays a crucial role by shaping strategies, setting regulations, and providing funding, creating an environment that fosters innovation. This support comes in the form of national AI strategies, regulations on ethics and privacy, and funding for research projects and startups.

Startups are at the heart of innovation, and their success relies on access to resources like incubators, accelerators, and partnerships with large corporations. Working with big companies helps them grow faster and integrate AI solutions across a wide range of industries.

Education is essential for the ecosystem's sustainability. Universities and technical colleges offer specialized programs that prepare the next generation of AI experts. Scholarships, internships, and an interdisciplinary approach help students develop the skills they need and understand the wider context of AI technologies.

In an ideal ecosystem, all these elements work in sync, creating a strong foundation for the development and application of artificial intelligence, leading to long-term competitiveness and innovation on a global scale.

Alongside the world’s largest and most developed countries, Sweden stands out for its holistic approach to AI development, with strong collaboration between the government, industry, and academia. The Swedish government is actively investing in AI research and education, and the country is recognized for its open innovation culture and strong focus on the ethical aspects of artificial intelligence.

The current landscape of AI in Serbia

Artificial intelligence is increasingly recognized in Serbia as a powerful tool for driving innovation and improving various sectors. While AI development is still in its early stages, it’s already playing a key role in areas like finance, healthcare, marketing, and manufacturing. Serbia is grappling with challenges like a lack of experts and limited resources, yet there are significant opportunities for further AI development and application. In recent years, Serbia has become a key hub for AI development in the Balkans. This growth is fueled by factors like an abundance of young talent, a strong IT sector, and a rising interest in technologies that can transform business models and boost efficiency.

A major step toward creating a technology-friendly environment was the adoption of the Artificial Intelligence Development Strategy in the Republic of Serbia for the period 2020–2025. The strategy outlines goals and measures for AI development, aiming to drive economic growth, improve public services, enhance scientific expertise, and develop skills for the jobs of the future. The implementation of the measures outlined in the Strategy should ensure that artificial intelligence in the Republic of Serbia is developed and applied safely and in accordance with internationally recognized ethical principles. This approach aims to harness the potential of this technology to improve the quality of life for individuals and society as a whole, as well as to achieve the Sustainable Development Goals.

The AI ecosystem in Serbia is rapidly evolving, thanks to a range of key organizations, projects, and infrastructure that are driving the advancement and application of artificial intelligence across various sectors.

The Serbian AI Society is a key gathering place for experts, researchers, and AI enthusiasts. Its mission is to connect members of the AI community, encourage collaboration and knowledge sharing, and promote AI through educational and research initiatives. By hosting events, workshops, and conferences, the society helps raise awareness about AI and its potential to transform both society and the economy.

One of the key pillars of Serbia's AI ecosystem is the Research and Development Institute for Artificial Intelligence of Serbia. This institution plays a crucial role in advancing and applying AI technologies through research projects and partnerships with industry. It leads cutting-edge AI research and applies it across sectors like industry, healthcare, education, and public administration.

In addition, the National Platform for Artificial Intelligence provides valuable support to researchers and companies by offering resources for the development of AI projects. The platform offers access to advanced tools and data, speeding up the development and adoption of artificial intelligence in Serbia. It allows researchers and companies to test and build their solutions in a secure, optimized environment.

One of the key projects in this ecosystem is AI4SME, which focuses on applying artificial intelligence in small and medium-sized enterprises (SMEs). The AI4SME project aims to provide SMEs with access to AI technologies that can enhance their operations, improve efficiency, and boost competitiveness in the market. This initiative fosters innovation within SMEs, helping them become more agile and successful in their digital transformation.

The State Data Center plays a crucial role in supporting the development of artificial intelligence in Serbia, providing the necessary infrastructure for storing and processing large volumes of data. Data is a vital resource for artificial intelligence, and the State Data Center plays a key role in ensuring its secure and efficient management. With scalable and reliable infrastructure, the center supports researchers and companies in developing cutting-edge AI models and applications that can transform various industries. Plans for upgrading and expanding this critical infrastructure have already been announced for the near future.

AI Startups in Serbia

In the past two years, especially with the rise of well-known generative AI tools, Serbian startups have increasingly focused on artificial intelligence, machine learning, and big data management. These areas are key drivers of innovation within the ecosystem, reflecting global trends as well as a growing interest in AI applications. According to this year's Startup Scanner report, more than one-third of startups use AI to enhance their products and/or develop new technology.

Support and Programs for the AI Community

When compared to other industries/technologies, support for AI startups and enthusiasts is still underdeveloped, primarily due to the relatively small number of interested parties and the uncertainties that come with a completely new technology. Right now, there are only a few programs and initiatives specifically focused on artificial intelligence, which can be a challenge for those looking to get involved in the field. However, as the community gradually grows and artificial intelligence becomes increasingly relevant across various industries, it is expected that new, highly specialized support programs will emerge, providing the necessary resources and expertise for the continued development of the AI community in Serbia. Here are a few initiatives that are specific, focused, and that I have been able to learn about:

The Serbia Ventures - AI program is designed to encourage qualified individuals, private investors, and institutions to actively engage in funding high-potential startups developing innovative products based on artificial intelligence by establishing a venture capital fund in Serbia. Through this program, the Innovation Fund will invest in a venture capital fund in Serbia as a limited partner, aiming to create a significant market impact on the country’s innovation ecosystem. The maximum funding amount the Fund can invest in the future venture capital fund is €5,000,000. 

The AI Master Class, an intensive educational program for AI professionals and enthusiasts, was held last year. It was organized by the Faculty of Organizational Sciences at the University of Belgrade in collaboration with the Institute for Artificial Intelligence Serbia. This comprehensive educational program is tailored for professionals in business and advanced technology, addressing the legal and ethical challenges of artificial intelligence. Participants gained insights into global regulatory trends and practices, with a strong focus on the European Union and Serbia.

This year, the Eastern European Machine Learning Summer School (EEML 2024) was held for the first time in Serbia, hosted at the Novi Sad Science and Technology Park campus. This prestigious international event, organized by the Institute for Artificial Intelligence Serbia (IVI) and a team of scientists from Google DeepMind, in collaboration with the Faculty of Technical Sciences at the University of Novi Sad, garnered significant attention from the global scientific community. EEML 2024 received over 840 applications, making it one of the most sought-after summer schools in the event’s history, with an acceptance rate of just 20%. More than half of the participants came from Eastern European countries such as Serbia, Romania, Croatia, Poland, and Slovenia. This year’s attendees represented 47 countries, spanning from Argentina and Costa Rica to South Korea, Singapore, and Australia. The program primarily attracted PhD students, along with talented master’s and undergraduate students, as well as professionals from the industry. 

At ICT Hub, in partnership with F6S and Zabala Innovation Spain, we supported ten deep-tech startups focused on AI and Big Data across Europe through the X2.0 program. Each startup received an innovation voucher worth €30,000, helping them advance and refine their products. Unfortunately, this time, none of the supported startups were from Serbia.

AI events in Serbia

These events provide opportunities for networking, knowledge exchange, and promoting new ideas. They also play a crucial role in raising awareness about the potential and benefits of AI, while helping to eliminate biases and fears associated with the technology.

AI-focused events are becoming increasingly common in our country. Conferences such as the Data Science Conference, which will be held in Belgrade from November 18 to 22, and SPLET Tech, offer a platform for professionals and enthusiasts to network, exchange ideas, and present innovations. These events play a key role in building the AI community, raising awareness about the latest developments in AI, and promoting collaboration between academia, startups, and corporations.

Recently, at ICT Hub, in collaboration with Impact Hub Belgrade, we hosted an AiSalon under a global license. The AiSalon has been held in cities worldwide, including Miami, Montevideo, New York, Amsterdam, and Tokyo. Its goal is to deepen the understanding of artificial intelligence, connect industries, academia, startups, and researchers, and inspire new projects and initiatives in the AI space.

The first event in the series gathered over 100 attendees, who had the opportunity to hear from two inspiring speakers and get to know three AI startups that presented their ideas during a pitch session.

The organization of the AiSalon in Belgrade is an important step toward further positioning Serbia on the map of global innovation in the field of artificial intelligence. The next event will be held at the end of November.

The organization of the AiSalon in Belgrade is an important step toward further positioning Serbia on the map of global innovation in the field of artificial intelligence. The next event will be held at the end of November.

AI and the Economy

More and more companies in Serbia are recognizing the importance of educating their employees in artificial intelligence, and are organizing occasional workshops, seminars, and training sessions to enhance their teams' skills. While these initiatives are growing in number, they are often sporadic and lack a clear strategy or long-term plan. As a result, many employees are left without the comprehensive knowledge and skills needed to successfully implement AI in their business operations. To fully unlock the potential of artificial intelligence, it is crucial to develop a more structured and continuous approach to employee education in this area.

Additionally, looking beyond Serbia for a moment, I’d like to highlight the AI Tech Summit. For the first time, ICT Hub partnered as a "community" partner with one of the largest AI events in the region, which took place on October 3rd and 4th in Skopje. This year’s summit attracted over 700 participants and 25 speakers from industry giants like Microsoft, Amazon, Google, NVIDIA, and Netflix. It was an excellent opportunity to dive into the latest advancements in artificial intelligence and hear from some of the top experts in the field.

To conclude - Does reducing the hype around AI sustain its level of application?

The development of artificial intelligence in Serbia is still in its early stages, but the country is rapidly gaining traction. Serbia has a lot of potential to become a leading hub for AI development in the region. However, achieving this goal requires continued investment, both from the government and private sector, in education, infrastructure, and research. Furthermore, by developing stronger connections between academia, businesses, and startups, Serbia can foster a more innovative environment and establish itself as an AI leader in the Balkans.

Serbia’s AI community is growing, and it’s encouraging to see initiatives that aim to address the challenges faced by AI startups. In the coming years, we are likely to see more AI-focused events, collaborations, and educational programs that will contribute to the development of AI and its application across different industries. The future of AI in Serbia looks bright, and the country is on its way to becoming a global leader in this transformative field.