Central and Eastern Europe hopes AI will boost GDP by 5%

European countries have arrived at the European Union (EU) Summit in Gdansk with an ambitious plan to become the world’s next AI hub, but they must act fast.

AI Chamber, an organization that supports the responsible development of AI in Central and Eastern Europe (CEE), has launched plans to turn CEE into Europe’s next artificial intelligence (AI) hub.

The CEE AI Action Plan is described as a “landmark initiative aimed at transforming Central and Eastern Europe into a globally competitive hub for artificial intelligence innovation.”

“Backed by compelling economic data and crafted over months of consultation with partners across the region, the AI Action Plan arrives at a critical moment: with over 150 million citizens and a combined GDP of €2.5 trillion, CEE is at a tipping point – one where the adoption or neglect of AI in the next 24 months could define the region’s economic trajectoryfor decades,” AI Chamber said.

The report states that AI adoption in CEE has lagged behind Western Europe, with certain countries adopting AI at a far faster pace.

However, if CEE adopts AI, it could potentially boost its GDP by up to 5% (€100 billion annually) with optimal gains of €135 billion, or 8% of GDP.

Yet, CEE isn’t adopting AI quickly enough, and the “window of opportunity is rapidly closing.”

That’s where the CEE AI Action Plan comes in, as AI Chamber lays the groundwork for AI adoption across the region.

This “region-specific roadmap includes tailored and actionable recommendations that will boost productivity, scale breakthrough innovation, and close the East-West competitiveness gap,” AI Chamber said.

This action plan requires coordination across governments, businesses, academia, and civil society to “turn CEE into a single, high-impact AI ecosystem.”

The plan is designed around five pillars that deal with the “systemic barriers holding back AI development and adoption.”

It is specifically focused on small and medium-sized enterprises (SMEs) that make up 99% of all CEE businesses, generating around 50% of the total GDP for the region.

These pillars aim to redesign and improve the region’s infrastructure, as there is currently a lack of “computing firepower” required to compete with other areas of Europe, among other important factors.

“Bulgaria and Czechia have made progress with national supercomputers, but CEE’s aggregate high-performance computing (HPC) still pales in comparison to Western Europe,” AI Chambers said.

The plan aims to establish local high-performance computing networks that link existing national supercomputers, allowing startups, SMEs, and researchers to build AI services and solutions.

AI Chamber also aims to outline the creation of a CEE Open Data Knowledge Network, which helps public institutions share best practices and make information more accessible to developers and researchers.

This plan also includes investment and emphasis on AI education and training that range from national school curricula to over 1,000 funded AI fellowships.

Implementing “Brain Circulation,” an initiative that provides financial support for AI professionals to lead labs, startups, or public-sector projects, will help bolster the five-pillar system.

The framework also focuses on regulation, proposing “regional regulatory sandboxes where startups could test AI systems safely, without drowning in legal complexity.”

AI Chamber is also advocating for the formation of a CEE AI Policy Council, giving the region greater influence in Brussels and ensuring a unification of rules across the EU.

The final and arguably most important factor within the plan is investment. In 2024, CEE fell behind Western Europe, raising only €2.3 billion in venture funding.

“With less than 10% of EU AI investment reaching CEE, AI Chamber’s strategy proposes to launch national AI R&D Programs, offering dedicated grants for AI projects in universities, research institutes, and public-private collaborations, a network of AI innovation hubs near top universities, and region-wide technology transfer programs.”

This action plan comes at a pivotal moment, when CEE could redefine itself as an AI hub, not necessarily mimicking Silicon Valley or the West, but establishing itself as a key player within the AI sector.

“With strong local ecosystems, affordable talent, and this coordinated push, we can build globally competitive startups that scale from Prague, Sofia, or Vilnius – not just from London or San Francisco,” concludes Tomasz Snazyk, CEO of AI Chamber.