New challenges usually provoke new innovations. These days, Ukraine is facing many problems, yet the tech industry is trying to use this situation for adopting and inventing new technologies and solutions. Serhii Tokarev, co-founder and general partner at Ukrainian investment group Roosh, explained in his op-ed in Barron’s the current situation with tech and artificial intelligence (AI) in Ukraine.
Ukraine is on its way to becoming a tech leader, and Serhii Tokarev sees great potential in this. The war has forced a complete economic restructuring, which has accelerated the country’s development in AI. With a relatively low-cost workforce and the absence of strict EU digital regulations, Ukraine is in a prime position to capitalize on the AI revolution. As of now, the combined valuation of Ukrainian AI startups is around $16 billion. Among the most prominent companies are Grammarly and Preply, both of which have garnered international attention and investment.
Serhii Tokarev emphasizes that building a strong AI ecosystem in Ukraine has not been easy. It is the result of coordinated efforts between the private and public sectors. For instance, the private sector actively engages with the Ministry of Digital Transformation of Ukraine, offering feedback and criticism on AI regulation strategies. The Ministry’s latest white paper, while aimed at creating a comprehensive regulatory approach, faced criticism from the tech community for not going deep enough. This dialogue between the public and private sectors is crucial, allowing Ukraine to develop more effective and flexible innovation strategies.
Education and workforce development also play a key role in Ukraine’s emergence as a tech leader. In the past decade, the number of AI and machine learning specialists in the country has increased fivefold. Serhii Tokarev notes that having a well-trained workforce is essential for successfully implementing advanced technologies. As technology evolves rapidly, having a workforce that can quickly adapt and innovate gives Ukrainian companies a competitive edge.
Moreover, the war has accelerated the development of dual-use technologies. Serhii Tokarev points to Ukrainian startups like Transimpex, which focuses on clearing landmines in conflict-affected areas. These companies show how AI can be applied not only in military contexts but also in civilian sectors like agritech. Ukrainian companies using dual-use technologies have the potential for global growth and can contribute significantly to the reconstruction of countries devastated by conflict.
Despite Ukraine’s successes, Europe risks falling behind in the race for AI leadership. Serhii Tokarev highlights that strict regulations in the EU could hinder AI development, while the U.S. and the U.K. are actively investing in the sector. Recent major investments, such as Microsoft’s funding of the French startup Mistral AI, suggest that American companies are starting to pay attention to the European market. However, if Europe does not adjust its approach, the gap between it and the rest of the world will only widen.
Despite the war, Ukraine ranks second in the number of AI companies among Central and Eastern European countries. Serhii Tokarev believes this achievement is no accident. In the face of war, Ukraine has shown an incredible ability to adapt and develop promising technologies. This demonstrates that the country is ready to take its place on the global AI stage and share its experience with other nations.
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