RULES OF THE GAME

Artificial intelligence is rapidly becoming one of the key factors in global economic growth, technological competition, and the transformation of state institutions. According to international analytical centres, AI is already comparable in its impact to the industrial revolutions of the past: it is changing value chains, labour markets, approaches to education, and governance. It is no coincidence that leading world economies—from the US and the EU to China and the Gulf countries—are hastily developing national AI strategies, investing billions of dollars in infrastructure, data, and human capital.

Against this background, Azerbaijan is increasingly defining its intent to occupy a place in the emerging global AI architecture. 

The opening of the ASAN Artificial Intelligence Centre (ASAN AI HUB), alongside growing discussions on the legal, ethical, and institutional regulation of AI, demonstrate a shift from declarations to concrete steps.

Azerbaijani agenda

The scale of the global AI market is impressive. As noted at the opening ceremony of ASAN AI HUB by Ulvi Mehdiyev, Chairman of the State Agency for Public Service and Social Innovations under the President of Azerbaijan, "the value of the artificial intelligence market has already exceeded $800 billion, and according to forecasts, by 2030 its volume will reach several trillion dollars." He added that by 2025 around 400 million people worldwide already use AI-based solutions and derive practical benefits from them.

Meanwhile, as highlighted in a report by the UN Conference on Trade and Development, over the next ten years the AI technology market will grow roughly 25 times—from $189 billion in 2023 to nearly $4.8 trillion in 2033. By then, AI will affect about 40% of jobs globally.

The penetration of AI in the corporate sector is particularly telling. "Approximately 70% of international companies and the business sector as a whole have implemented at least one AI-based solution in their business processes. This shows that the concept of artificial intelligence has already become part of our way of life," emphasised Mehdiyev. In fact, this is a general-purpose technology actively applied across the economy, industry, healthcare, education, and social sectors.

For Azerbaijan, this global trend means not only new opportunities but also serious challenges. Deputy Minister of Economy Sahib Alakbarov directly pointed out the need for a sober assessment of the country's current position: "Today we must admit that the volume of work in this area far exceeds what we have already done. If we do not properly evaluate our current position, if we do not clearly define where we stand and where we need to move, this could ultimately have a negative impact on our economy."

Indeed, that is the reality: AI today is not just a trend or a fashionable technology. It is a factor that is already changing the economy, transforming industries, and determining countries' competitiveness. In a context of intensifying international competition, technological lag can lead to reduced global competitiveness, while timely investments in AI can become a new growth driver.

Recognising one’s level on the technological maturity scale enables states to form realistic and effective development strategies.

New projects

If artificial intelligence is viewed not as an abstract technology but as a real economic and managerial system, it becomes clear that its development rests on three key pillars—data, infrastructure, and human capital. This was emphasised by Deputy Minister of Digital Development and Transport Sameddin Asadov during the scientific-practical conference "Prospects for Artificial Intelligence in Combating Climate Change."

According to him, "today about 50 countries have already adopted programmes and strategies for AI development. First of all, data are needed for its development, and for processing them—appropriate infrastructure." The second critically important component he named was having specialists capable of effectively working with these data arrays and computing capacities.

In this context, forming a regulatory and legal framework acquires special importance. As Sadig Gurbanov, Chairman of the Milli Mejlis Committee on Natural Resources, Energy and Ecology, noted, Azerbaijan needs to establish a modern legislative base in artificial intelligence and create legal mechanisms supporting cross-sector cooperation. "Thirdly, parliamentary oversight over state programmes should be established," concluded the MP. He stressed that AI development is "not only a technological innovation but also a strategic tool," whose application could increase global GDP by 15% by 2030.

Deputy Minister of Digital Development and Transport Samir Mammadov reported that a legal mechanism is already being developed in the country to ensure AI technologies are used "in accordance with ethical values and principles of responsibility," with special emphasis on protecting human rights and data confidentiality. This approach reflects a global trend: as AI capabilities grow, attention to risks—from data breaches to discriminatory algorithms—also increases.

According to Asadov, the Ministry of Digital Development and Transport is also working on special standards for AI ethics and responsibility. The country plans to open more than 1 billion data units to society, launch programmes for creating AI models by the private sector, startups, and research institutions, as well as institutional regulation of this sphere. "We must ensure that AI models created in our country serve humanity rather than becoming future sources of threat," he emphasised.

Infrastructure is also developing simultaneously. Deputy Minister of Science and Education Firudin Gurbanov pointed out the need to create AI-related data centres, noting that their number worldwide has grown from 500 thousand in 2012 to more than 8 million today. However, he also drew attention to environmental costs: high energy consumption and significant carbon footprints of equipment. "For example, in Ireland 35% of energy consumption in 2026 will be accounted for by data centres. Special equipment related to AI—for instance, a computer weighing 2 kg—requires 800 kg of raw materials, which will negatively impact ecology in the future," he added. All these aspects are particularly important for Azerbaijan within the climate agenda.

Gurbanov also highlighted that the Ministry of Science and Education implements projects in schools aimed at raising children's awareness in AI.

Incidentally, another topic on Azerbaijan's busy December AI agenda was the presentation of projects by the National Artificial Intelligence Centre. As Ibrahim Suleymanov from the centre reported, there are already more than 3 thousand participants in the AI community; specialists and engineers have been trained; work is underway on creating their own data centre and educational platforms in Azerbaijani. "In the near future government bodies will be able to implement AI projects on this infrastructure. We have also started cooperation with several universities, and work on student startup initiatives will begin soon," informed Suleymanov.

The centre has already launched several projects, the first and largest being e-qanun AI, created jointly by the Ministries of Digital Development and Transport and Justice. This is an AI-based legislative search system used by about 30 thousand people—not only lawyers but also civil servants and representatives of civil society. It exemplifies how AI technologies can enhance transparency and accessibility of legal information: "Using this project, users can quickly find information and conduct legal analysis on their issues," noted Suleymanov.

Thus, artificial intelligence in Azerbaijan is gradually ceasing to be a topic for the future and becoming part of the present—with concrete projects, institutions, and strategic guidelines. The key task for the coming years is to turn accumulated initiatives into an integrated ecosystem where technologies, personnel, and rules work synchronously. Otherwise there is too high a risk of remaining merely consumers of foreign AI solutions—from both economic and political perspectives.

R+ NEWS

Azerbaijan discussed cooperation opportunities with leading US IT companies

Minister of Digital Development and Transport Rashad Nabiev held several meetings with top executives of leading global technology companies during his visit to the US.

For instance, at a meeting with Boris Power, head of applied research at OpenAI, they discussed building an infrastructure for sovereign artificial intelligence.

"We exchanged views on prospects for cooperation in creating infrastructure for sovereign artificial intelligence; implementing joint innovative and research initiatives; education and training personnel; as well as applying AI solutions adapted to local requirements," said the minister.

Opportunities for cooperation in AI were also discussed with David Wang, Chief Vice President at Advanced Micro Devices (AMD).

The parties talked about prospects for expanding Azerbaijan's capabilities in artificial intelligence and turning the country into a regional digital centre. They also exchanged views on AI centres jointly with AMD, research and educational initiatives, as well as possibilities for long-term strategic cooperation and joint investments.

At a meeting with Molly Montgomery, Director of Global Relations at Meta, possibilities for collaboration in digital governance and implementation of innovative solutions were discussed.