Romania’s EUR 5 Billion Plan for Digitalization and AI Implementation AI Could Increase Organizational Revenue by Up to 10%
Magda Purice
Posted On August 22, 2024
- Forecasts indicate that in the coming years, companies integrating AI into their operations could see significant revenue growth, with increases ranging between 6% and 10%.
- By 2027, 20.5% of PNRR funds, totaling over EUR 5 billion, are expected to be invested in developing a robust digital ecosystem and promoting AI systems in both public and private services, according to the National Strategy on Artificial Intelligence.
- It is estimated that by 2030, Romania’s economy could benefit from a 13.5% growth due to the widespread use of artificial intelligence in the business environment. This figure represents enormous potential for economic development and innovation in the country.
- Romania ranks 18th in the European Union in terms of the number of academic programs specialized in artificial intelligence.
International data points to an upward trend in the use of artificial intelligence (AI) technologies, and this growth is associated with promising prospects for organizational revenues, according to an analysis by the communication agency Businessing and the company Gov-Smart.
Forecasts indicate that in the coming years, companies integrating AI into their activities could see significant revenue growth, with increases between 6% and 10%[i].
Moreover, it is estimated that by 2030, Romania’s economy could benefit from a 13.5%[ii] growth, according to Techcelerator, due to the extensive use of artificial intelligence in the business environment. This figure represents enormous potential for the country’s economic development and innovation.
By 2027, 20.5% of PNRR funds, totaling over EUR 5 billion, are expected to be invested in developing digital infrastructure and encouraging the implementation of AI systems in both public and private services, according to the National Strategy on Artificial Intelligence[iii].
The strategy includes seven areas for digitalization policies: connectivity, human capital, e-government, digital public services, and local digital ecosystems, business digitalization, investments in digital capacities, and the deployment of advanced technologies.
Of the amount allocated for digitalization, EUR 1 billion is expected to be used for developing the population’s digital skills, according to public data analyzed by Businessing and Gov-Smart.
The current reality of AI technology adoption in Romania is less optimistic, as the country still has a significant gap to close compared to other European nations. By the end of 2021, Romania was at the bottom of the European rankings in terms of integrating artificial intelligence into companies’ daily operations.
Only 1% of all active companies in Romania had implemented AI in their workflows[iv].
This discrepancy between identified potential and current implementation underscores the need for sustained efforts to stimulate AI technology adoption in the Romanian business environment.
Unequal Access to Technology and Digital Skills Could Create a Two-Speed Society
A crucial aspect of this transformation is how technology influences jobs and the global economy. While some voices discuss the enthusiastic prospects of creating new opportunities and increasing efficiency, others raise concerns about potential threats such as job losses and growing economic inequality.
“Artificial intelligence will continue to play a crucial role as an executive tool, contributing to the optimization of processes and increasing efficiency across various fields. However, digitalization should not be perceived as a threat to jobs but rather as an opportunity for evolution. By reallocating human resources to functions that leverage expertise and the ability to generate a positive social impact, digitalization becomes a catalyst for societal progress, not a source of professional insecurity”, says Alexandru Panait, cybersecurity expert and founder of Gov-Smart.
Unequal access to technology and digital skills could create a two-speed society, where some are advantaged while others are left behind.
Romania ranks 18th in the European Union in terms of the number of academic programs specialized in artificial intelligence[v], while Germany, the Netherlands, and Sweden taking the top three spots.
Therefore, it is crucial to implement policies and initiatives that promote digital inclusion and ensure that no individual or community is left behind in this transformation process.
Educational initiatives, government support, and collaboration between the public and private sectors can play a vital role in balancing the acceleration of digitalization and realizing the benefits that AI technology can bring in the near future.
About Businessing Agency
The integrated branding and PR services offered by Businessing bring a unique approach to the Romanian market, providing communication strategies based on relevant market analysis, copywriting, and offering companies the opportunity to position their key messages appropriately in the public space. The communication agency was founded in 2023.
About Gov-Smart
Gov-Smart is transforming public administration in Romania. By implementing interconnected modules specific to each type of institution, the company aims to automate up to 90% of the work of public servants, significantly reducing repetitive tasks and improving administrative efficiency. Gov-Smart’s founder, Alexandru Panait, has extensive experience in cybersecurity, particularly in the public administration sector. Gov-Smart is modernizing the current e-primariaTa.ro portal, also founded by Alexandru Panait in 2020. With funding from the European Commission through the Next Generation Internet project, the platform has become a global solution.
[ii] AI Report – Techcelerator
[iii] National Strategy on Artificial Intelligence
[v] Artificial Intelligence Index Report | Universitatea Stanford
