Although Estonia is a small nation, it boasts a significant presence in the tech world.
Estonia gained recognition as the birthplace of the groundbreaking video-calling service Skype after achieving independence in 1991. Since then, the nation has consistently worked towards making governmental services highly accessible through digital means. As early as 2000, citizens were able to handle their banking transactions and tax filings online. Presently, individuals have the ability to submit applications for residency or citizenship from home, establish businesses remotely, and even initiate divorce proceedings without stepping outside. Recently, in January, officials declared that the country achieved full digitization across all public services.
in government services
.
The following stage revolves around generative artificial intelligence (AI) and machine learning technologies, focusing on how to optimally leverage the opportunities brought about by these new technical abilities. In March, the nation
launched a program
To equip educators and teachers with AI-driven tools.
In an interview with
Dailyexe
, Estonian Prime Minister Kristen Michal shared that the government works closely with entrepreneurs and tech companies, domestically and abroad, to promote technology development and remove bureaucracy from government services and business activities such as business formation, tax filing and real estate transactions.
“Everything is pre-filled to you already in tax preparation,” Michal said. “It takes a lot of stress away.”
He also mentioned that the process is similar when a baby is born. Upon delivery, documents for registration of birth and medical records are started right away and stored electronically, allowing parents to access these files online once they get back home from the hospital.
He stated, “Virtually everything can be found online now, with over 120 instances showcasing how AI is utilized in public services. These applications are designed to be anticipatory, tailored, and forward-thinking.”
The ongoing war with Ukraine hangs over Estonia, which neighbors Russia and was previously part of the Soviet Union. But it has also represented an opportunity, Michal said.
He clarified, ‘We have a highly dynamic defense industry sector, and as a result, new enterprises will arise.’
Cybersecurity is likewise a strong point for the nation, having been the location of various incidents.
NATO
The Cooperative Cyber Defence Centre of Excellence has been located in the capital city of Tallinn since 2008.
In many other nations, I encounter significantly fewer individuals who are both entrepreneurs and intellectual thinkers compared to what I observe here.
Mark Minevich
The president of Going Global Ventures and a strategic advisor at the venture capital firm Mayfield stated
Dailyexe
Following my recent trip to Tallinn, I noticed an increased emphasis on science, innovation, technology, and entrepreneurship. It seems like everyone is attempting to develop new concepts and ideas.
Minevich said some of the businesses and AI capabilities he’s seen rival those of Silicon Valley and would receive similar valuations if they were located in California instead of Eastern Europe. He pointed to Bolt, the European rideshare and delivery company founded by 19-year-old Markus Villig in Tallinn in 2013, and Pactum, a company founded and led by the former leader and cofounder of Estonia’s famed e-residency program Kaspar Korjus.
Pactum, an artificial intelligence-powered operations and supply chain software utilized by numerous large corporations, has recently secured a win on a continental scale.
“Future Unicorn” award
in acknowledgment of its promise for upcoming achievements.
The issues facing Estonia include limited manpower, with a population of approximately 1.3 million, and insufficient working capital. Although Pactum has secured $55 million in funding, the country’s startup ecosystem receives less investment compared to those in the U.S., U.K., or various nations in Asia and the Middle East, according to Minevich.
The main issue they highlighted was their limited access to capital, which forces them to depend on alternative methods.”
European Union
“They mentioned,” he clarified, “that they lack a solid venture capital foundation. There aren’t any governmental grants either. Essentially, they must vie with all other EU countries for funding and grants, which isn’t a simple task.”
Despite the recent economic expansion and forecasts suggesting continued growth over the coming year, Michal sustains a positive outlook.
“Estonia lacks a substantial internal market,” he stated. “Our approach must be to work more intelligently rather than focusing on volume; we should prioritize quality instead.” He further expressed a view commonly held regarding technological advancements like AI: these technologies aren’t going to replace you directly, but they will outpace those who do not use them effectively.
If you utilize AI tools more effectively than others, you’re likely to come out as a victor in the market,” Michal stated. “Private sector investments have grown since 2017; the number of individuals with science degrees has doubled between 2017 and 2023. Enhancing quality seems to be the sole path forward.
Michal expressed his hope that through education, they can cultivate the “most intelligent users” of new technologies, aiming to foster innovation and maintain a market conducive to entrepreneurship and progress in the future. This is one reason why artificial intelligence is becoming increasingly prominent in both education and government sectors in Estonia.
He stated, ‘Given the advent of technology, artificial intelligence, and various new opportunities, those who are most adept at using these tools will likely thrive during this technological transformation.’
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