InvestAI: Opportunities for Albania in adapting the European Initiative

In early February 2025, the European Union (EU) launched a new initiative to promote the development and adoption of artificial intelligence (AI) across both member states and candidate countries, including Albania. This initiative aims to harmonize AI regulations, foster innovation, and ensure that the development of AI respects the fundamental rights of citizens.

For Albania, a strategy to adapt the ambitious vision of InvestAI can be developed on a small scale but with a clear focus, tailored to local capacities and external resources, including the diaspora.

Upon analyzing the EU’s initiative, what matters for Albania is not the scale but the initiative’s capacity to mobilize internal and external resources. Overall, this giga-investment should not be implemented as in the past, but rather with a future-oriented mindset, aiming to support youth and future generations. In adapting to the EU’s major initiative, we believe that Albania can begin drafting its own Master Plan, making AI the major national discussion topic over the next four years—replacing the current focus on infrastructure. Based on this context, we propose the following approach:

1. Creation of small and sustainable AI Hubs

Albania could establish 3–5 regional AI development centers in cities such as Tirana, Durrës, Korça, and Shkodër. These hubs would leverage existing educational infrastructure, such as universities, to create spaces for research and development. Small laboratories equipped with basic AI technologies would enable the development of innovations. Funding could be sourced from EU funds, and the technologically inclined Albanian diaspora could be actively involved.

2. Enhancing computing capacity and building local “data lakes”

Albania could develop a national data center in collaboration with tech giants like Google and Microsoft. The integration of public and private sectors for data collection and analysis would allow for the optimization of agricultural production and energy distribution networks. This would strengthen strategic sectors like agriculture, energy, and transport.

3. Involving the Albanian diaspora in the AI Industry

Engaging diaspora professionals to bring knowledge and resources to Albania is a major opportunity. An online platform could be created to connect diaspora experts with local AI hubs, fostering direct investment. Training programs and conferences involving diaspora professionals would enhance knowledge transfer and collaboration.

4. Focusing AI on industrial development and practical applications

AI can be used to modernize key sectors in Albania, particularly agriculture and tourism. Applications could include AI-based farm management systems and personalized tourist experiences. This would directly increase productivity and employment in these sectors.

5. Education and development of local talent

Albania stands to benefit greatly from introducing AI-related courses in major universities and organizing tech camps for youth. Partnerships with international schools would support the development of a strong local AI expertise base.

6. Development of trustworthy and ethical AI Policies

Developing regulations that protect personal data and monitoring AI use to prevent manipulation are essential. Albania could establish a National AI Ethics Board, involving government, businesses, and civil society stakeholders.

Strategic integration with national policies

InvestAI, as an initiative focused on the development of artificial intelligence and digital technologies, should be strategically integrated with Albania’s existing digitization policies and plans. The initiative could help enhance administrative efficiency, modernize public services, and support various economic sectors.

Key integration aspects:

• Alignment with Existing Strategies: InvestAI should be part of the broader national digital transformation strategy, linked with priorities such as e-services, e-government, and support for tech startups.
• Long-term Vision: The long-term implementation of InvestAI should aim to develop AI capacities that stimulate innovation in health, education, transport, and agriculture. International partnerships and support for scientific research will help build a sustainable AI ecosystem.

Economic impact and long-term development

If properly developed and implemented in Albania, the InvestAI initiative could have a substantial impact. First, it could significantly increase productivity in key sectors such as agriculture, energy, and tourism, through the optimization of processes via AI. This would boost competitiveness and innovation in the tech industry, including startup development and job creation—particularly for youth.

By integrating AI into manufacturing and agriculture, Albania could achieve a notable increase in productivity, which would reflect positively on GDP growth. Adapting AI models for energy management and agricultural optimization could improve the country’s overall economic output. Modernizing key sectors could result in a 2–4% GDP increase over the first 5–7 years.

However, similar to experiences in developed countries, a transformative initiative like this requires a development period of 10–15 years to reach full capacity and effectiveness. During this period, continued investment in technological infrastructure and AI integration across sectors will be essential, accompanied by ongoing innovation.

Financial needs and sources

To realize this initiative, Albania would require multi-billion-euro investments, potentially sourced from:

• European Union Funds: Through Horizon Europe and IPA programs, EU support could finance technological infrastructure and talent development.
• Investments from the Albanian Diaspora: With support from diaspora professionals and investors, partnerships could generate substantial funding for startups and advanced research.
• Local and Private Financing: The private sector and investments in startups can play a key role in accelerating industry growth.

For implementation within a 5–7 year timeframe, an initial investment of €500 million to €1 billion may be required, depending on the scale and sectors involved. This could lead to further investments and economic returns in the subsequent phases of AI sector development.

Benefits for Albania

Benefits would include:

• Increased productivity and GDP growth
• Industrial and agricultural modernization
• Enhanced economic diversification
• New employment opportunities
• International competitiveness in AI
• Potential to become an AI hub in the Balkans

This vision requires strong public and private sector commitment and close collaboration with the diaspora. The project’s success depends on multisectoral cooperation and can drive Albania’s long-term economic transformation.