DIGITAL FRAMEWORK

The Fourth Industrial Revolution (4IR) is driving a large-scale digital transformation across the globe. This involves the development of e-government and cybersecurity, the implementation of artificial intelligence (AI), the development of data infrastructure, and so on. In this regard, Azerbaijan is proactively implementing best practices in the field of the 4IR and other digital initiatives.

The country's strategic objectives in this regard were discussed during the first meeting of the Council on Digital Development, chaired by Azerbaijan's First Vice-President Mehriban Aliyeva.

The AI ecosystem

Leading nations worldwide are working to establish sustainable digital ecosystems that promote human capital growth, mitigate the risks of climate change and support the UN Sustainable Development Goals aimed at narrowing the digital divide. Last year, on the initiative of the Head of State, the 'Concept for Azerbaijan's Digital Development' and the 'Azerbaijan Artificial Intelligence Strategy for 2025–2028' were adopted. The overarching objective of these documents is to facilitate the digital transformation of the country's economy, particularly within the context of Industry 4.0.

In recent years, the country has taken steps to develop the G-Cloud government cloud system, establish a Big Data infrastructure and set up data centres (server and network equipment). In addition, the Centre for Analysis and Coordination of the Fourth Industrial Revolution (4SIM Azerbaijan), operating under the auspices of the Ministry of Economy, is commencing the establishment of an artificial intelligence ecosystem.

However, despite progress in a number of areas, there is still a need to optimise digitalisation processes, overcome the fragmentation of initiatives being implemented by the government departments involved in this sector, and ensure unified coordination of all projects.

A meeting was held at the beginning of this year to discuss the preparation of a unified action plan – 'Azerbaijan's New Digital Architecture'. This meeting was chaired by the Head of State and was one of a number of measures being taken to accelerate progress in this area. The Ministry of Digital Development and Transport (MDDT) and the Ministry of Economy, in conjunction with other government bodies, were assigned the task of formulating a concrete action plan for the forthcoming work with all possible haste. It was noted that, to ensure the effective organisation of work, each government body – primarily the ministries – should appoint a deputy responsible for digitalisation, artificial intelligence and cybersecurity to liaise with the leadership of the MDT, and that this area should be recognised as a priority in every government institution.

At the meeting of the Digital Development Council of the Republic of Azerbaijan, the First Vice-President of Azerbaijan, Mehriban Aliyeva, delivered a speech in which she highlighted the key areas of the country's digital transformation and outlined the tasks ahead in this regard. The primary objectives of the new body are to coordinate the activities of various government bodies, develop a unified approach and ensure the timely and effective implementation of decisions taken.

"Our aim is threefold. Firstly, to introduce new technologies. Secondly, to give a powerful boost to the country's economy. Thirdly, to create a new, modern innovation ecosystem. We also aim to attract domestic and foreign investment to the country, support local start-ups and establish a more effective system of public administration," emphasised Mehriban Aliyeva.

The development of AI is a priority of the strategy, as it is no longer a matter for the future but a key factor in today's development. This field also plays a central role in ensuring national security. It was also noted that the development of AI in the world's leading nations is progressing more rapidly than expected, which, in turn, creates both new opportunities and new risks. In this regard, it is imperative for Azerbaijan to enhance its readiness to confront emerging challenges, especially those pertaining to cyber and information security.

Artificial or progressive?

In recent years, there has been a significant breakthrough in the field of AI: today, AI hardware and software systems are gradually taking over the management of complex industrial, energy and transport infrastructure, regulating the operation of public utilities and road traffic, whilst bot services (a suite of programmes) serve customers in the financial sector and on government e-government platforms. Furthermore, according to expert estimates, the added value that will be generated in the AI sector by 2030 could amount to approximately $16 trillion.

The 4SIM Azerbaijan Centre is leading the development of a regulatory framework, ethical standards and rules for governing the AI sector. Concurrently, an educational and scientific foundation is being established to prepare young people and help all citizens adapt to the future AI-driven labour market and the changes that artificial intelligence will bring. The Analysis and Coordination Centre is currently involved in testing pilot projects that explore the responsible use of artificial intelligence in various sectors, including healthcare, energy, education, agriculture, sport and e-government. These projects also include the active application of artificial intelligence in call centres. There are plans to support private-sector initiatives capable of generating added value of ₼70 million through solutions based on generative AI.

The country has developed its first systematic concept for the application of AI in the energy sector, among other achievements. The document 'Artificial Intelligence-Based Solutions in the Energy Sector', which draws on international experience, outlines the potential for applying AI based on 40 global concepts and contributes to deepening the digital transformation in the energy sector.

This year, the country plans to launch a new AI-based application – an electronic platform providing comprehensive information on living, working and doing business in our country for foreign investors, start-ups and talented individuals wishing to establish themselves in Azerbaijan. Implementation of large-scale AI language models and the roll-out of the country's digital twin project are underway. The aim of these projects is to improve understanding and visualisation of economic processes in real time.

In this regard, a national artificial intelligence ecosystem is being developed: a National AI Centre is being established in the country, AI services in the public sector are being expanded, and a regulatory 'sandbox' for AI products has been launched.

"The role of artificial intelligence is no longer a matter for the future, but a key factor in today's development. At the same time, the role of artificial intelligence in ensuring national security is growing, and it already occupies a central place in this sphere," stated Mehriban Aliyeva.

Consequently, in tandem with the evolution of the digital economy, there is an imperative for concerted efforts to safeguard our nation's cyberspace. To this end, the 'National Cybersecurity Agency' has been established under the auspices of the Ministry of Digital Development and Transport. The Agency will coordinate, regulate and monitor this area, ensure the resilience of the information infrastructure and issue warnings about cyber threats.

Meanwhile, the Central Bank of Azerbaijan (CBA) is refining the regulatory framework and developing AI and blockchain technologies to create a robust 'Antifraud' system – a set of measures and technological solutions aimed at preventing theft involving bank cards. Ensuring the availability of highly skilled specialists in the country is a prerequisite for the secure widespread use of AI technologies. To train such specialists, the Artificial Intelligence Academy was opened in Baku last September, operating with the support of the state-owned organisation AZCON Holding.

“Overall, the ‘Action Plan for Accelerating Digital Development for 2026–2028’ includes 58 initiatives in the areas of digitalisation, AI, the innovation ecosystem and cybersecurity. Roadmaps have been drawn up with 40 state bodies, 13 of which have already been approved or are in the process of being approved,” said Rashad Nabiyev, Minister of Digital Transformation, at a meeting of the Council for Digital Development. He reported on the creation of the National Data Pool and emphasised that work is continuing on migrating government information systems to G-Cloud and on the construction of a new data centre.

New architecture

A report published earlier this year by the United Nations Conference on Trade and Development (UNCTAD) notes that high-tech sectors accounted for over a fifth of the value of all investment projects worldwide in 2025. For instance, more than $270 billion was invested in the construction of data centres alone. It is noteworthy that the development of Big Data infrastructure, the construction of data centres and the expansion of cloud storage capacity – priorities of Azerbaijan's digitalisation strategy – are included in the 'Action Plan for Accelerating Digital Development for 2026–2028'.

As is well known, the main efforts to develop data infrastructure in our country rest with the leading cloud provider, AzInTelecom LLC, an organisation under the jurisdiction of the Ministry of Communications and Information Technologies (MCIT). This company operates the main data centre in Baku and a backup centre in Yevlakh, both of which meet international standards. The centres provide various cloud services, ensuring robust cybersecurity for both the primary and backup databases. In particular, the project operator, AzInTelecom, has ensured the full or partial integration of the information systems and resources of 287 organisations.

This work is ongoing: AzInTelecom is overseeing projects to build new large-scale data centres in the Absheron and Hajigabul districts. These facilities are being constructed using 'green' technologies and natural cooling systems. The project in Absheron is scheduled for completion in 2027, with both complexes to be fully commissioned by 2030.

Implementing 'Azerbaijan's New Digital Architecture' is of equal importance. This involves standardising the various digital platforms and applications developed in recent years by ministries and government departments. The aim is to ensure that government e-services are provided via the single Mygov platform – that is, from a single centre – which will significantly simplify technical requirements and software updates, delivering enormous benefits for citizens. In this regard, during a meeting of the Digital Development Council, Minister Nabiyev noted that over the past three months, the digital services offered by the Mygov platform had been expanded, and the number of users had increased from 2.7 million to 3.5 million. In addition, several applications have been integrated into the platform, and services from a further seven government applications will be made available to citizens by the end of the year.

The pace of integrating government agencies’ resources into the Mygov platform is very rapid. By the end of the year, many government bodies will be providing their full range of services via Mygov. Very soon, it will be possible to obtain and renew documents such as identity cards and passports, and to apply for a replacement driving licence. Through the Mygov interface, it is also possible to apply to the Ministry of Justice for permission for minors to leave the country, enrol children in pre-school institutions, register students’ enrolment at higher education institutions, and so on. And from 1 June this year, the Mygov platform has provided access to identification procedures within the smart-customs system (mobile app) for completing customs declarations when importing goods purchased via e-commerce.

It is important to note that the use of AI-based solutions will be expanded on the Mygov platform and other e-government resources. Azerbaijan is currently developing the E-advisory digital assistant platform, which will be capable of automatically generating various documents. Chatbots and content-aware services are also being created that understand the user's intentions, provide recommendations and help resolve issues proactively.

These measures are designed to facilitate enhanced citizen engagement with government services. Currently, citizens have the option to submit their inquiries to government entities in both written and voice-message formats, which are then processed by artificial intelligence.

Nevertheless, the primary objective of all these transformations in the e-government system is to improve the quality and accessibility of internal administrative processes within government bodies. This involves a transition from the current 'e-government' mechanisms to the next stage of development – 'digital government' (GovTech).

Consequently, the creation of a unified digital architecture, the development of artificial intelligence, data infrastructure, GovTech and cybersecurity are becoming interlinked elements of the long-term strategy for modernising the state and the economy. The effectiveness of this ecosystem will be a key factor in determining Azerbaijan's competitiveness in the context of the rapid development of Fourth Industrial Revolution technologies.