Azerbaijan embarks on new digital era Groundbreaking development concept

The development of human capital, the digitalization of public administration, and the adoption of modern innovations within the framework of the Fourth Industrial Revolution (4IR) have been identified as strategic priorities for Azerbaijan's future growth. A logical step forward in this direction was the decree signed by President Ilham Aliyev on January 16, which approved the "Concept of Digital Development of Azerbaijan." 

The document encompasses various aspects of public administration digitalization, the enhancement of the e-government system, and other state information resources and systems. The new concept is also designed to accelerate the transition to a digital society by expanding the implementation of digital technologies across the country, including systems such as Smart Cities, the Internet of Things (IoT), and Artificial Intelligence (AI).

Over twenty years ago, Azerbaijan embarked on the implementation of the state program "Electronic Azerbaijan," aimed at transitioning to a global information society. Years of transformation led to the creation of an extensive interactive information system, e-government. Today, more than 500 electronic services from various ministries and most government agencies are integrated into the unified e-government portal (www.e-gov.az).

In recent years, the number of registrations on the eGOV portal and the innovative myGOV platform has grown exponentially. These platforms offer a wide range of electronic services in sectors such as utilities, housing privatization, fiscal and customs services, government procurement, labour relations, and entrepreneurship, all of which are in high demand, particularly among the business community.

Notably, 1,000 companies in Azerbaijan have connected to the digital document management subsystem, with over 500,000 documents processed monthly within the system. Additionally, the "Digital Bridge" project is being implemented under the e-government framework to enhance information exchange between government institutions. This project integrates over 70 Azerbaijani government agencies and more than 100 information systems, and through the development of digital document management, state institutions are steadily moving towards paperless administration.

The further development of the trends mentioned above is given considerable attention in the new "Concept of Digital Development of Azerbaijan." Specifically, within the country’s digital ecosystem, a digital government architecture will be created, with specialized interdepartmental working groups tasked with its development. The key goal is to optimize existing workflows to enhance the quality and accessibility of internal administrative processes within government institutions. This involves a significant transformation, moving from the current "electronic government" (eGov) mechanisms to the next stage of development — "digital government" (GovTech).

Plans include the complete elimination of paper-based processes in favour of digital formats, as well as maximizing the use of electronic signatures. The creation of a state information "pool" infrastructure is also planned to analyze large data volumes, identify patterns, build predictive models, and facilitate flexible management and optimal decision-making, including the provision of proactive services. The digital government architecture will be organized to efficiently manage the flow of information (G2G/G2E, G2B), with interdepartmental information exchange taking place through the "Electronic Government Information System" (EGIS). The resources and databases of national importance will be housed in the "Government Cloud."

To ensure the reliable operation of this system, it is essential to standardize algorithms and data exchange protocols, as well as integrate the operational systems and platforms of various government structures. The concept also envisions the integration of innovative technologies such as Artificial Intelligence (AI) and blockchain into government mechanisms. Additionally, the new concept addresses the improvement of broadband and other IT infrastructure in the country, with plans to increase private investment in this sector to achieve these objectives.

The new concept also aims to enhance the digital literacy of the population, train IT specialists, and modernize educational programs. Business processes will gradually be transitioned to digital platforms, and various sectors of the economy will be digitalized in line with the requirements of post-industrial development — the Fourth Industrial Revolution (4IR). Support will be provided for the development of startups and the innovation ecosystem, including the planned introduction of new services for the private sector using an open application programming interface (Open API).

As part of the National Cybersecurity Strategy, preventive measures will be taken to protect state, business, and personal information. Significant attention will be paid to the cybersecurity of government information systems and resources, including through the maximum migration of databases to the "Government Cloud" and the further development of national data processing centres and DATA centres.

The objectives outlined in the "Concept of Digital Development of Azerbaijan" will be addressed step by step, building on the already established foundation of digital transformation. In recent years, significant progress has been made in Azerbaijan in this area: in particular, the processes of digital transformation in the economy have been accelerated, incorporating elements of the Fourth Industrial Revolution (4.0). These initiatives include the digitalization of business processes and control systems in sectors such as manufacturing, energy, and transport. The Big Data infrastructure is also being developed, and systems for primary and backup data storage (DATA centres) have been established. Efforts are being made to enhance cybersecurity, and payment systems are being reformed.

The country is developing "smart" cities and villages, digitalizing the utilities sector, and creating components of the IT ecosystem to support startups, incubators, and venture funds for financing high-tech projects. Specifically, within the Smart City program, digital management systems for smart cities and villages, incorporating elements of green energy and energy-efficient technologies in the utility sector, are being implemented in Baku, Ganja, and the revived cities and villages of the Karabakh region. This work is being carried out with the support of companies and specialists from Türkiye, Israel, several European countries, and China. In recent years, pilot projects for the implementation of IoT and AI technologies have been underway at research centres and universities, aimed at fostering software businesses and training startup founders. This work is gaining momentum, and by 2026, the number of active startups in Azerbaijan is expected to grow from the current 220 to 500.

It is particularly worth mentioning the work of the Center for Analysis and Coordination of the Fourth Industrial Revolution (4SIM), operating under the Ministry of Economy, which has successfully completed the development of the digital economy strategy up to 2030. Meanwhile, the Innovation and Digital Development Agency (IRIA) under the Ministry of Digital Development and Transport of Azerbaijan is implementing large-scale initiatives aimed at training qualified personnel for the IT sector.