AI in Azerbaijan: from public services to virtual advisors Caliber.Az review

Humanity stands on the threshold of the Fourth Industrial Revolution and the development of Industry 4.0, built upon the integration of artificial intelligence (AI) into all areas of activity. Against the backdrop of accelerated digitalisation, Azerbaijan has in recent years intensified efforts to introduce advanced AI solutions in public administration, finance, transport, energy, and the agricultural sector — with machine intelligence increasingly becoming part of citizens’ daily lives.

The prospects for developing this direction have been outlined in the presidential decree approved in March this year — the Artificial Intelligence Strategy for 2025–2028. One of Azerbaijan’s key partners in this field is China, and during the recent Innovation Forum on Artificial Intelligence-Driven Digital Economy in Shanghai, the Azerbaijani delegation presented the country’s vision and prospects for AI development.

In recent years, a tremendous breakthrough has been achieved in the field of artificial intelligence: new inventions are bringing to life what only recently seemed like science fiction. Modern computers and robots are now capable of self-learning, improving their performance, and even making decisions. Hardware and software AI systems are gradually taking over the management of complex industrial, energy, and transport facilities, regulating the operation of public utilities and traffic flow, while bot services are assisting clients in the financial sector and state social agencies.

The growing robotisation of production processes helps to secure high-risk technological operations and automate repetitive routine tasks. At the same time, virtual reality technologies make it possible to manage business processes and conduct training without risk; wearable gadgets monitor employees’ health in real time, and AI-based analytical systems can predict potential accidents before they occur.

There is no doubt that in the coming years, artificial intelligence will profoundly transform the familiar way of life for people across the globe, who now stand on the brink of a new technological and cultural revolution.

Azerbaijan’s long-term digital transformation policy is aimed at developing new intelligent products, building Big Data and blockchain systems for managing large volumes of information, creating AI-based solutions, and supporting the startup ecosystem.

In particular, the Central Bank of Azerbaijan (CBA) is developing management frameworks for IT segments of banks and other financial institutions in line with international standards, using AI tools to enhance operational resilience and improve cybersecurity processes. With the support of the CBA, advanced technologies such as AI are also being integrated into insurance processes, making them more efficient, transparent, and customer-oriented by providing personalised offers and faster services.

AI mechanisms are being actively implemented in Azerbaijan’s agricultural sector — particularly within the electronic agriculture system — as well as in the transport and logistics sector, including in the management of cargo transit along the Middle Corridor.

The advancement of these directions is being driven by two key documents adopted this year at the initiative of the head of state — the Concept of Digital Development of Azerbaijan and the Artificial Intelligence Strategy of Azerbaijan for 2025–2028. Their ultimate goal is to accelerate economic growth within the framework of Industry 4.0 and to ensure the country’s digital sovereignty.

Azerbaijan’s achievements in this field were showcased at the 8th China International Import Expo in Shanghai, where the Azerbaijani delegation, led by Deputy Prime Minister Shahin Mustafayev, took part in the Innovation Forum on Artificial Intelligence-Driven Digital Economy. The forum addressed issues related to building digital infrastructure — including cloud systems, 5G networks, the modernisation of cybersecurity, and the development of the digital economy and data-driven decision-making mechanisms.

“In line with the Azerbaijan 2030: National Priorities for Socio-Economic Development programme, our country is building a sustainable, inclusive, and innovative model of the digital economy. The development of human capital and an innovation-driven economy is one of the key priorities of the republic’s development strategy,” noted First Deputy Minister of Economy Elnur Aliyev in his speech at the forum.

It was emphasised that Azerbaijan is cooperating with leading global educational programmes to foster an ecosystem of digital education and lifelong learning. In particular, collaboration with the world’s largest online learning platform — Coursera — is creating new synergies between government institutions, universities, and international partners in the fields of education and the economy.

So far, more than 45,000 Azerbaijani citizens have gained knowledge and skills in the technologies of the Fourth Industrial Revolution and other related areas under the National Coursera Programme.

It is highly significant that Azerbaijan’s efforts to develop high technologies and implement AI solutions are supported through partnerships with several European countries, as well as with Israel, Türkiye, and the member states of the Organisation of Turkic States (OTS). Looking ahead, cooperation with government institutions and companies of the People’s Republic of China (PRC) may take a leading role in this direction.

“China is ready to share its achievements in the fields of scientific and technological innovation, digital infrastructure, and artificial intelligence with the international community, including Azerbaijan,” said Chinese Ambassador to Azerbaijan Lu Mei during her recent speech at the Azerbaijan University of Languages.

When discussing the expansion of international cooperation in the fields of science and IT, it is worth recalling that Azerbaijan was among the first countries to join China’s “Group of Friends” within the framework of the UN initiative on AI development. China attaches great importance to global governance in the field of artificial intelligence and advocates that these technologies should not become a privilege of wealthy nations, but rather serve the benefit of all humanity, including the countries of the Global South.

A focus on cooperation with China helps bridge both the digital and intellectual divides — a highly sound choice for Azerbaijan. Today, China is the world leader in the number of AI patents and is home to some of the largest AI startups, such as Baichuan, Zhipu AI, and MiniMax. Moreover, Chinese developers have launched their own open-source model, DeepSeek-R1, offered at an extremely low cost and using a minimal number of chips, significantly outpacing competitors in the United States and Europe.

The potential and prospects for expanding the use of AI in Azerbaijan were recently discussed in Baku during the 7th StrategEast State and IT Eurasian Forum, organised by the Innovation and Digital Development Agency (IDDA) in partnership with StrategEast. Dedicated to the theme “Shaping the World with AI” and held in Azerbaijan for the first time, the forum brought together around 200 experts and technology leaders from the United States, the European Union, regional countries, and global companies such as Google, EPAM, Xsolla, Coursera, and Sigma Software, along with experts from the World Bank and the European Bank for Reconstruction and Development.

“The implementation of international experience in high technologies contributes to unlocking Azerbaijan’s strategic potential to create an effective balance between the traditional energy sector and advanced AI technologies,” said Rika Nakazawa, Director of Commercial Innovation at Japan’s Nippon Telegraph and Telephone Corporation (NTT), who participated in the StrategEast Forum. “Azerbaijan has the opportunity to become a key regional technology hub at the crossroads of green energy and artificial intelligence.”

Azerbaijan also has considerable experience in developing e-government systems and platforms, where the potential of AI tools can be fully realised.

“Artificial intelligence will transform the nature of public services in Azerbaijan. To achieve this, it is necessary to accelerate the digitalisation of open databases and modernise regulatory mechanisms. Such an approach has a direct impact on the economy and can play a key role in Azerbaijan’s digital development strategy,” said Marina Zhunich, head of Government Engagement for the Caucasus, Central Asia, Southern Africa, and Israel at Google Cloud, during the StrategEast Forum.

“The use of AI can improve services in the judicial system and public administration within just weeks. This model can boost growth in the financial sector by at least 33%,” she added.

According to Kamran Aghayev, Director of the Data Management Department at the Innovation and Digital Development Agency, artificial intelligence will be integrated into Azerbaijan’s e-government information systems and will serve as a digital advisory platform capable of automatically preparing various documents for citizens.

Aghayev noted that work is already underway in the country to develop a local language model of artificial intelligence: “Together with the company EPAM, we are creating personalised AI-based service platforms, and this process is already being implemented through the MyGov portal. A chatbot system that responds to citizens’ queries is currently operational, and at the next stage, an AI-powered platform called E-Advisory — a digital consultant — will be launched. This system will be hosted within the government’s cloud environment, G-Cloud.”