Montenegro is integrating artificial intelligence into its economic development strategy as it seeks to reduce reliance on tourism, real estate, and construction. This move comes amid efforts by policymakers to identify growth sectors that can bolster the country’s economy.
Recently, President Jakov Milatović engaged with Peter Sarlin, the founder of Silo AI and a professor at Aalto University, to explore the connection between local talent and European technology hubs. Discussions included support for domestic tech firms and the potential applications of AI in public sector operations.
While no specific investment plans or funding initiatives were announced during the meeting, it highlights an increasing awareness within Montenegro of the need to attract higher-value digital activities. The nation has several advantages that could facilitate this shift, including a relatively streamlined public administration, the use of the euro, improving digital infrastructure, and a diaspora with experience in technology markets across Europe and North America.
The country’s smaller size may also allow for quicker implementation of modern solutions in public services, tourism systems, and municipal databases compared to larger nations with more complex administrative structures.
Artificial intelligence could be applied in various sectors such as tourism forecasting, traffic management, electricity demand forecasting, tax-risk assessment, healthcare administration, and enhancing digital public services. Additionally, banks, telecommunications firms, and major retailers could utilize similar technologies for fraud detection and operational planning.
The primary economic opportunity for Montenegro lies in creating exportable services rather than relying solely on imported software solutions. To achieve this, the country needs companies capable of developing and maintaining AI systems for regional and European markets.
This goal necessitates a strengthened collaboration between educational institutions, applied research entities, and private businesses. While universities can produce trained engineers and data specialists, retaining graduates will depend on the availability of local projects and job opportunities.
Montenegro faces competition from larger labor markets for skilled software developers. Although remote work enables local professionals to connect with international employers without relocating, it poses challenges for domestic companies striving to offer competitive salaries.
A pragmatic technology strategy should focus on specialized niches where Montenegro possesses relevant data and market demand. Sectors such as energy, tourism, maritime services, environmental monitoring, and public administration present more viable starting points than attempts to replicate extensive tech ecosystems found in larger countries.
The establishment of AI services will also require robust infrastructure. Factors such as data quality, cybersecurity measures, cloud access, reliable electricity supply, and clear public procurement guidelines will influence whether initiatives can progress beyond pilot phases.
Moreover, government institutions must avoid viewing artificial intelligence as a substitute for fundamental digitalization efforts. Organizations struggling with fragmented records and poor data governance cannot achieve efficiency merely by implementing AI technologies.
The dialogue with Sarlin marks an initial policy indication that Montenegro is beginning to align its economic diversification discussions with technology advancements and European research networks. The country’s potential lies not in positioning itself as a global technology hub but in developing a select number of credible export-oriented businesses in sectors where it already has expertise and market demand.
