Lithuania’s “Unicorn” Startup Initiative: Business Lagging Behind
- Lithuania has just welcomed another technology "unicorn" - Cast AI.It is clear that we have the potential of artificial intelligence (AI).
- According to the European Commission's Digital Economy and Society Index (DESI), when assessing the overall use of AI in companies, Estonia reached 13.9% in 2025 and exceeded the...
- The difference is even more striking when looking at the EU leaders - 27.6% of companies in Denmark use AI, 25.1% in Sweden, 24.7% in Belgium, and 24.4%...
Lithuania has just welcomed another technology “unicorn” – Cast AI.It is clear that we have the potential of artificial intelligence (AI). Data from the European Commission also shows a clear breakthrough throughout the region, but at the same time reveals structural differences that will determine whether the AI conversion will become an engine for the entire economy or remain the advantage of individual large organizations.
According to the European Commission’s Digital Economy and Society Index (DESI), when assessing the overall use of AI in companies, Estonia reached 13.9% in 2025 and exceeded the European Union average (13.5%). Meanwhile, in Latvia and Lithuania, this indicator is 8.8% each, and these countries are almost at the bottom of the list.
The difference is even more striking when looking at the EU leaders – 27.6% of companies in Denmark use AI, 25.1% in Sweden, 24.7% in Belgium, and 24.4% in Finland. This shows not only a technological gap but also a different ability to implement AI solutions systematically and on a large scale.
The biggest bottleneck in the Baltic region stands out in the segment of small and medium-sized businesses (SMBs). In 2025, 13.3% of SMBs used AI in Estonia,8.2% in Latvia,and 8% in Lithuania,while EU leaders in the SMB segment have already reached more than a fifth of companies.
This is important because SMBs are the backbone of the Baltic economies, and the AI transformation becomes economically significant only when solutions move from individual experiments and isolated initiatives to everyday business processes.
This trend is also confirmed by a survey of Baltic businesses conducted by the research agency “Norstat” in the fourth quarter of 2025 commissioned by “Citadele”. It showed that today businesses are primarily investing in employee competencies (29%) and productivity and efficiency (24%), while investments in AI solutions are not yet among the priorities.
Artificial Intelligence Adoption in the Baltic States: A 2024 Assessment
Table of Contents
The provided text discusses the growing role of Artificial Intelligence (AI) in the Baltic region,specifically highlighting Lithuania’s potential as a hub for AI development and the challenges to wider adoption. As of January 18,2024,the core points remain relevant,though further developments have occurred as the original assessment.
Current Status of AI in the Baltics (2024)
The observation that AI is becoming a reality in the Baltics is accurate. Several factors contribute to this: increasing investment, a growing startup ecosystem, and government initiatives. The example of “cast AI” remains a valid illustration of Lithuanian AI capabilities. Cast AI (https://www.castai.io/) continues to operate and expand its services in cloud cost optimization using AI.
Challenges to Widespread AI Implementation
The text correctly identifies key obstacles to broader AI adoption:
* Funding: The need for sustained, long-term public investment in AI implementation, beyond training programs, is a critical point. While the European Union provides funding through programs like Digital europe Programme (https://digital-strategy.ec.europa.eu/en/policies/digital-europe-programme), the effective allocation and long-term commitment by Baltic governments remain crucial. As of late 2023, the Baltic states have been actively applying for and receiving funds from this program, with a focus on AI testing and experimentation facilities.
* Sector-Specific Models: The demand for pre-built, adaptable AI solutions tailored to specific industries is valid. Initiatives are emerging to address this. For example,Estonia’s AI and Robotics initiative (https://www.kriis.ee/en/ai-robotics/) focuses on developing AI applications for public services and key sectors.
* Talent Gap: The shortage of skilled professionals capable of working with data, deploying AI solutions, and integrating them into business processes is a significant constraint. Lithuania, Latvia, and Estonia are all investing in STEM education and retraining programs to address this, but the demand continues to outstrip supply. Universities in the region are expanding AI-related curricula, but attracting and retaining talent remains a challenge.
* Legal and Ethical Framework: The need for clarity regarding security, compliance, and liability related to AI is paramount. The EU AI Act (https://artificialintelligenceact.eu/), adopted in March 2024, will substantially impact the regulatory landscape for AI in the Baltic states.The Act categorizes AI systems based on risk and establishes requirements for transparency, accountability, and human oversight. Baltic governments are currently working to implement the EU AI Act into their national legislation.
Regional Competitiveness and Future Outlook
The assertion that the choice between widespread AI integration and limited adoption will determine the region’s competitiveness is accurate. The Baltic states are actively positioning themselves as attractive locations for AI investment and innovation.
* Estonia is focusing on becoming a digital society and a testbed for AI applications in governance and public services.
* Lithuania is leveraging its growing startup ecosystem and focusing on AI solutions for fintech, cybersecurity, and logistics.
* Latvia is prioritizing AI applications in healthcare, smart cities, and enduring energy.
The Baltic states are actively competing with other European regions for AI investment and talent. Success will depend on their ability to address the challenges outlined above and create a supportive ecosystem for AI innovation.
Disclaimer: Data is current as of January 18, 2024, and based on publicly available sources. The AI landscape is rapidly evolving, and further developments may occur.