In the latest issue of IPF Notes, Matea Cvjetković analyses investment in artificial intelligence (AI) in the EU member states and Croatia, focusing on its structure and sectoral distribution. In 2023, Croatia invested more than 1 billion euro in artificial intelligence. The investment was primarily directed towards data and equipment, while investment in skills and R&D remained below the EU level. Such a distribution may limit long-term effects, because existing infrastructure cannot be adequately utilized without applying appropriate knowledge and research capacity.

Total AI investment in the EU in 2023 is estimated at around 257 billion euro, but its allocation across member states is uneven. Only four countries, Germany, France, the Netherlands and Italy, together account for almost 60% of total investment. When observing per capita investments, Ireland leads with more than 1,600 euro. At the same time, Croatia invests around 320 euro, which is near the bottom of the ranking, below the EU average of 574 euro.

The analysis also shows additional differences: the EU invests mostly in skills, while Croatia puts more emphasis on data and equipment. The differences are also visible at the sectoral level. In the EU, the public sector finances 27% of total AI investment, while in Croatia, its role is more noticeable, accounting for around 33%. Nevertheless, a significant share of these funds relies on European sources.

The author emphasized the importance of planning the domestic fiscal strategy and the adoption of the National Plan for the Development of Artificial Intelligence by 2032, in order to increase investment and direct it more effectively towards knowledge, skills and research.