Azerbaijan’s digital transformation opens doors for Russian technologies in key sectors

Russian technologies hold tremendous promise for expansion in Azerbaijan, with significant opportunities for collaboration across various sectors, according to Dmitry Alekseev, the "digital attache" of the Russian Trade Representative Office in Azerbaijan.

In an interview with domestic media, Alekseev emphasized that Azerbaijan offers a strong environment for implementing Russian innovations, particularly in the areas of "smart cities," artificial intelligence applications in industry, agriculture, tourism, and education, per Caliber.Az.

"Russian companies must be ready to showcase their competitive advantages through pilot projects," Alekseev said. "The ICT sector in Azerbaijan is expected to grow by 9-12% in 2025."

He highlighted the core objectives of Azerbaijan's ongoing digital transformation, including the shift to digital governance, infrastructure improvements such as broadband development, enhancing digital literacy, and boosting both state and corporate cybersecurity.

"The government is highly supportive of new enterprises, especially those in manufacturing and technology. Azerbaijan offers tax incentives and subsidies to foreign investors, making it a highly attractive destination for business growth," Alekseev added.

He believes that Russian technologies, especially in public services, smart city initiatives, AI in various industries, and education, have tremendous potential for growth in Azerbaijan. For these innovations to succeed, however, Russian companies must demonstrate their comparative competitive advantages through concrete pilot projects.

"Russian technologies and products have a strong potential for implementation in Azerbaijan, and this is a great opportunity for mutual growth," Alekseev concluded.

Earlier it became known that Azerbaijan is set to produce artificial intelligence (AI) technologies in its technoparks and industrial zones. This move is part of the newly approved Artificial Intelligence Strategy for 2025-2028, which was signed today by President Ilham Aliyev.

The strategy outlines plans to attract AI technology producers to establish operations within these zones, laying the groundwork for a strong AI ecosystem in the country.

In an effort to create a favorable business environment for AI development, the strategy includes initiatives to draw both local and foreign investments into key sectors. Additionally, at least three pilot projects will be implemented to demonstrate AI applications.

The strategy also highlights measures such as drafting regulations to support business entities, along with providing soft loans to at least 50 businesses engaged in AI technology.

By Tamilla Hasanova