On December 3, the Ministry of Economics, the Ministry of Smart Administration and Regional Development, the Investment and Development Agency of Latvia (LIAA), and the State Digital Development Agency signed a Memorandum of Understanding with Microsoft. This agreement reaffirms Latvia’s dedication to collaborating with Microsoft to develop a National Center for Artificial Intelligence and advance other key digital initiatives.
"The need to streamline public administration, optimize costs, address human resource shortages, meet citizens' expectations for modern communication solutions with public administration, and reduce environmental impact are the primary drivers for adopting AI and other digital tools," stated Minister for Economics Viktors Valainis. "Our collaboration with Microsoft will support Latvia's ambition to become a digital leader in the Baltics and Europe. This year, the Investment and Development Agency of Latvia (LIAA) will launch its first pilot project focused on process digitization in partnership with Microsoft."
This memorandum aims to promote the adoption of artificial intelligence and digital solutions to modernize public administration processes and enhance Latvia’s innovation and technology ecosystem. Such 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.
"This collaboration extends beyond technology, it’s about helping Latvia thrive in a digital-first economy," said Leonid Polupan, Country Manager for 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 organizations with the tools to efficiently create, deploy, and scale AI innovations. This collaboration is designed to enhance technological capabilities, drive economic growth, and open doors for Latvian companies to compete and succeed in both local and international markets."- he concluded.
More than 91% of public sector services in Latvia are available online. This year, Latvia scored 88.22 points on the European Commission’s Digital Economy and Society Index (DESI), surpassing the EU average of 79.4. Latvia ranks 6th among EU member states for the extent of digitized services available to its citizens.
Inga Berzina, Minister of Smart Administration and Regional Development, emphasized: "The memorandum signed today marks a new chapter in Latvia's digital transformation and innovation journey. It provides a strategic framework to modernize public administration, foster business innovation, and facilitate knowledge exchange by harnessing the power of artificial intelligence and other cutting-edge technologies. Under this memorandum, we will enhance public administration processes, expand e-services, and support businesses leveraging AI-driven opportunities, all while prioritizing environmentally friendly and sustainable technologies. This collaboration represents a significant step in bolstering Latvia's competitiveness within the EU and globally."
The success story of digitisation in Latvia is a synergy of several factors: focused strategic planning, a strong information and communication technology sector, adequate infrastructure, close cooperation between the public and private sectors, and the responsiveness of the public administration to innovation, an open economy, and competition in the telecoms market.
The first initiative under this collaboration with Microsoft will be the launch of a pilot project to integrate AI solutions into LIAA's processes. This project will focus on optimizing areas such as project evaluation, aiming to significantly reduce review times and streamline decision-making to enhance support for entrepreneurs.
Additionally, the collaboration encompasses developing several strategic areas, including the digital transformation of public administration and the integration of artificial intelligence solutions to streamline administrative processes and enhance data analysis capabilities. A planned National Center for Artificial Intelligence will be a hub for developing cutting-edge technologies and solutions, leveraging Microsoft’s expertise and best practices. These initiatives aim to support businesses adopting AI-driven innovations and strengthening their competitiveness.