The center is expected to start operating on January 1, though the relevant law will still have to be approved by the Saeima and numerous details remain to be worked out. Nevertheless, it could be handed a substantial budget as soon as tomorrow, December 4.

“Currently, an active ecosystem in the field of artificial intelligence is operating in Latvia – there are institutions in universities, companies, and state institutions, as well as associations involved, however, there is a lack of effective mechanisms for the creation of strategic cross-sectoral cooperation initiatives and the creation of appropriate state support initiatives,” stated the Smart Administration and Regional Development Ministry (VARAM).

The development and integration of artificial intelligence is essential not only for economic benefits, but also to offer solutions in areas such as healthcare, education and training, public safety and security, cyber security, public administration efficiency and quality of public services, infrastructure management, energy, transport and logistics, as well as climate change mitigation, the ministry said.

Minister of Economics Viktors Valainis (Greens and Farmers Union) stated that the creation of such a center in Latvia would bring a huge opportunity for economic growth:

“We are the sixth most digitally developed country in Europe, we have all the prerequisites to really ‘run ahead’ of other countries,” Valainis claimed.

Valainis additionally claimed that artificial intelligence itself will not take away anyone’s job – but those people who know how to use artificial intelligence in their work will take jobs from others. 

The draft law developed by VARAM and approved by the government stipulates that there will be public-private partnerships and public involvement in the field of artificial intelligence, promoting the development, application and management of responsible and reliable artificial intelligence solutions, as well as promoting artificial intelligence skills in society and public administration.

The Ministry of Economics has previously suggested that in its first five years, LMIC could attract 500 million euros in investment projects.

However, the new AI body will require a high level of complex organization if it is to be run jointly by the state, the private sector and universities. It is not expected that the center itself will make any profit, so the formation of a foundation has been chosen as the most appropriate legal form rather than a company.

However, the specific composition of the founding members is not mentioned in the draft law, and a separate discussion is planned for it.

Commenting on the cooperation memorandum signed with the company “Microsoft” on Tuesday, December 3, Minister of Smart Administration and Regional Development Inga Bērziņa (New Unity) stated that “not only our entrepreneurs in Latvia, but also international companies have shown interest in participating in our joint at work so that artificial intelligence in Latvia makes public administration more efficient and increases productivity in business, making life better for all of us than it is now”.

Valainis mentioned that technology companies “Meta” and “Google” have also expressed their willingness to participate in the creation of the center without confirming their participation.

The draft law stipulates that the center’s council will be established by the founders, consisting of no more than nine members, including the chairman of the council. The functions of the center’s secretariat will be performed by the State Digital Development Agency.

The draft law approved by the government stipulates that the center’s funds will be made up of state budget funds, financing from foreign financial aid projects, as well as gifts and donations from individuals and legal entities.

Next year’s state budget bill, which will be considered by the Saeima in its final reading on December 4, foresees handing over 370,000 euros from the budget of the Ministry of Economics for the creation and maintenance of the Latvian National Center for Artificial Intelligence.

 

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