Montenegro’s digital economy now represents approximately 5% of its GDP, reflecting a significant growth trajectory. However, the predominance of small businesses within the economy may exacerbate productivity disparities as artificial intelligence (AI) and cybersecurity increasingly influence competitive advantage.
Recent industry data indicates that the digital sector is expanding at an annual rate of around 8%, generating upwards of 1,200 new jobs each year. Despite this growth, a staggering 96% of Montenegro’s active companies, totaling 61,195 out of 63,823, are classified as micro enterprises, which complicates the adoption of advanced technology.
The limited scale of these small businesses often prevents them from employing dedicated specialists in AI or cybersecurity. Consequently, there is a commercial opportunity for service providers that offer technology solutions without necessitating in-house development.
Potential avenues for growth include offerings such as AI-as-a-service, managed cybersecurity, cloud migration, workflow automation, outsourced IT, and employee training. These services are particularly relevant for sectors like accounting, retail, professional services, and small-scale manufacturing.
AI technologies have the potential to streamline routine tasks such as administration and customer support. However, successful integration into existing workflows requires secure implementation. Similarly, as businesses increasingly digitize payments and customer records, they face heightened risks related to ransomware and data loss.
The majority of micro enterprises lack the resources to maintain dedicated cybersecurity teams. This situation favors managed service providers capable of distributing specialized staff and technology across multiple small and medium-sized enterprises (SMEs).
This model can also extend to cloud infrastructure and business software. By opting for subscription-based services tied to actual usage rather than making substantial upfront investments, smaller firms can access necessary digital capabilities more feasibly.
The evolution of Montenegro’s technology market may thus be driven more by numerous small firms acquiring external digital solutions than by large corporate IT initiatives. However, this trend raises concerns about a bifurcated economy where larger firms that automate processes enhance productivity at a faster rate than those reliant on manual operations.
While Montenegro has established a burgeoning digital sector, the critical challenge remains whether it can deliver affordable technological tools to the 96% of companies that lack the capacity to develop their own technology teams.
