Microsoft and Latvia Collaborate to Establish National AI Hub and Advance AI Innovation

Memorandum of Understanding to Enhance Public Administration and Strengthen Latvia’s Position as a Digital Leader in Europe.

Highlights

  • Focus on AI-driven modernisation of public administration.
  • National Center for AI to foster innovation and support local businesses.
  • First pilot project will streamline LIAA’s processes and decision-making.

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Microsoft and Latvia Collaborate to Establish National AI Hub and Advance AI Innovation
Latvia's Ministry of Economics, Ministry of Smart Administration, the Investment and Development Agency (LIAA), and the State Digital Development Agency signed a Memorandum of Understanding (MoU) with Microsoft on December 3 to boost the country's digital transformation. The agreement focuses on collaborating with Microsoft to develop a National Center for Artificial Intelligence (AI) and modernise public administration through AI and digital solutions.

Also Read: Denmark Launches Guidelines for AI Implementation in Europe with Microsoft




Key Goals: AI Integration

Latvia aims to streamline public administration, optimise costs, address human resource shortages, meet citizens' expectations for modern communication solutions with public administration, and reduce environmental impact by adopting AI and other digital tools."Our collaboration with Microsoft will support Latvia's ambition to become a digital leader in the Baltics and Europe," said Viktors Valainis, Minister for Economics.

"This year, the Investment and Development Agency of Latvia (LIAA) will launch its first pilot project focused on process digitisation in partnership with Microsoft," Valainis added.

This memorandum aims to promote the adoption of artificial intelligence and digital solutions to modernise public administration processes and enhance Latvia's innovation and technology ecosystem, Microsoft said on December 4. The cooperation will not only speed up the delivery time of public administration services but also improve their quality, efficiency, and accessibility for citizens and businesses.

Microsoft to Provide AI Tools

Microsoft will provide AI tools like Azure AI Services and Machine Learning Operations, helping Latvian businesses innovate and compete globally. "This collaboration extends beyond technology; it's about helping Latvia thrive in a digital-first economy," said Leonid Polupan, Country Manager for the Baltics and Ukraine at Microsoft.

"By leveraging Microsoft's advanced AI solutions, such as Azure AI Services, Machine Learning Operations, and Model as a Service, we're equipping Latvian businesses and organisations with the tools to efficiently create, deploy, and scale AI innovations," Polupan added.

Also Read: Denmark Launches Sovereign AI Supercomputer Gefion with Nvidia

Latvia's Digital Ranking

More than 91 percent of public sector services in Latvia are available online, ranking 6th in the EU for digitised public services. The partnership with Microsoft is expected to further strengthen its position as a hub for innovation in Europe, according to the official release.

"Under this memorandum, we will enhance public administration processes, expand e-services, and support businesses leveraging AI-driven opportunities, all while prioritising environmentally friendly and sustainable technologies. This collaboration represents a significant step in bolstering Latvia's competitiveness within the EU and globally," emphasised Minister of Smart Administration and Regional Development, Inga Berzina.

First Pilot Project

The first initiative under the MoU is a pilot project to integrate AI solutions into LIAA's processes, aiming to speed up project evaluations and improve decision-making processes to enhance support for entrepreneurs.

Also Read: Microsoft Boosts AI Innovation in Ireland, Creating 550 New Jobs

National Center for AI

Additionally, a National Center for Artificial Intelligence will be set up for developing cutting-edge technologies and solutions, leveraging Microsoft's expertise and best practices to support businesses adopting AI-driven innovations, according to Microsoft.

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