Estonia launches bold AI initiative to double productivity
Estonia is no stranger to being the first in official digital adoption — already succeeding in making all governmental services online, using blockchain and e-voting. Now it’s time to take this approach into the AI era. The Estonian government unveiled Eesti.ai on Tuesday, an ambitious national program that aims to systematically implement artificial intelligence across all sectors, with the goal of doubling the value of Estonian work by 2035.
Prime Minister Kristen Michal launched the initiative alongside Bolt founder Markus Villig, who will chair the international advisory council driving the program. The council brings together Estonian tech leaders, including IT visionary Linnar Viik and entrepreneurs Sten Tamkivi (Skaala), Kaspar Korjus (Pactum), and Taavi Madiberk (Skeleton), working alongside international experts and sector representatives.
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Originally published on 27 Jan
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The 26 highest ranked projects in the second BioPhoT call for research and innovation projects will receive funding. They will receive an investment of €4,710,859, with each project receiving up to €190,000 in funding for eight months of research and innovation activities.
Most of the supported projects – seven – will be carried out by research groups from the Institute of Solid State Physics at the University of Latvia. The University of Latvia follows with five supported projects, followed by the Institute of Organic Synthesis and Riga Technical University with four each. Two projects each will be implemented by teams from the Latvian Biomedical Research and Study Centre and Riga Stradins University, and one each by research groups from the Institute of Electronics and Computer Science and Ventspils University College.
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Originally published on 6 Mar
Cybernetica has successfully completed additional technical delivery of the CDOC2 project for the Estonian Information System Authority (RIA), implementing a comprehensive upgrade to Estonia’s national file encryption standard that addresses critical security requirements and enables long-term secure document storage.
CDOC – Crypto DigiDoc – is the file format used to store encrypted DigiDoc files. The objective of the CDOC2 project was to replace the previous CDOC 1.0 standard. It became clear during the 2017 ROCA cryptographic vulnerability crisis that additional protections are necessary. Updates to the standard are two-fold:
- modernising the encrypted file format and adding additional encryption algorithm support
- providing additional protection against harvest-now-decrypt-later attack and preparing CDOC system for quantum computer threat
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Originally published on 6 Mar
Rail Baltica has moved to the next stage of its consolidated construction materials procurement, with several framework agreements for key track components now signed or close to being finalised. The centralised procurement model, implemented together by Estonian, Latvian and Lithuanian delivery organizations and led by the central coordinator of the project, plays an important role in making sure the future high-speed railway is developed as one connected and compatible system.
Framework agreements establish pre-agreed conditions for pricing, performance, quality assurance and delivery schedules without creating immediate financial commitments. This structure allows national implementing bodies to place orders in line with actual construction progress, maintaining flexibility while securing supply chain reliability.
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Originally published on 5 Mar
Estonia cooperates extensively both within NATO and with a wider block of allies. This week, South Korean defence giant Hanwha Aerospace has announced a direct investment package of nearly €100M in Estonia, with the total economic impact — including joint R&D activities with local companies — projected to reach up to €260M. The investment aims to strengthen Estonia’s technological sovereignty and establish the country as a regional hub for territorial defence systems.
The announcement builds on a deepening bilateral relationship. In late 2024, Estonia signed a €290M contract with Hanwha to procure at least six Chunmoo multiple-launch rocket systems alongside three types of munitions. Hanwha had previously delivered six K9 Thunder self-propelled howitzers to the Estonian Defence Forces, making it one of Tallinn’s most significant defence procurement partners. Defence Minister Hanno Pevkur noted that Hanwha is also among the potential bidders for Estonia’s upcoming naval overhaul.
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Originally published on 6 Mar
On March 4, 2026, the Latvian Artificial Intelligence Association (MILA) organized the event “AI Solutions for Latvian Municipalities”, which attracted strong interest from public sector representatives across Latvia. More than 40 participants attended the event in person at the University of Latvia Library in Riga, while over 400 participants joined online.
The event was organized by MILA in collaboration with AI Salon Riga, the University of Latvia Artificial Intelligence and Computing Center, and the Latvian Municipal ICT Association.
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Originally published on 6 Mar
In 2025, Ignitis Renewables brought 714 megawatts (MW) of new renewable capacity online across the Baltics and Poland – the strongest delivery year in the company’s history. Six large-scale wind and solar projects entered commercial operation, reinforcing Ignitis Renewables’ position as one of the region’s leading renewable energy developers.
“In 2025, we delivered renewable capacity at scale and at speed. The projects commissioned last year significantly increase domestic electricity generation and strengthen the region’s energy independence laying the foundation for an energy abundant ecosystem and globally competitive prices for consumers,” says Frank Oomen, CEO of Ignitis Renewables.
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Originally published on 5 Mar
NIB has signed a loan agreement of EUR 50 million with JSC Development Finance Institution ALTUM to support SMEs across Latvia. The funding will be used for a wide range of SME investments, including equipment purchases (such as agricultural machinery, production machinery, and equipment for service providers), property investments (including agricultural or production facilities), as well as working capital loans.
The programme primarily targets loans below EUR 1 million, with a dedicated portion for smaller loans (below EUR 250,000) aimed at SMEs in rural areas. Typical investments include equipment and heavy vehicles for forestry, agriculture, and manufacturing, as well as construction or renovation of facilities for smaller service providers.
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Originally published on 3 Mar
Foreign investment firms often look toward emerging markets to get in early on tech startups. But the toughest challenge is knowing from afar which founders to back. Nowhere is this clearer than in the Baltic startup scene. According to the recently published Baltic Startup Funding Report, foreign investors were involved in 43% of all Baltic deals in 2025, contributing significantly to last year’s overall €607M attracted in venture investments.
But quick market entry does not always guarantee access to the best founders, especially those who don’t fit the usual profiles. This mix of enthusiasm and local knowledge gap in the Baltics sets the stage for new kinds of venture investors: those in a position to spot early talent that others miss.
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Originally published on 5 Mar
The Standing Committee of the Baltic Sea Parliamentary Conference (BSPC) convened at the European Parliament in Brussels for its spring session.
The meeting was preceded by a breakfast exchange with Members of the European Parliament and a security briefing by Martin Schäfer, Ambassador and Permanent Representative of the Federal Republic of Germany to the Political and Security Committee (PSC). The discussion addressed current EU security priorities and their implications for the Baltic Sea Region.
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Originally published on 2 Mar
At the invitation of Minister Radosław Sikorski, top diplomats of the Council of the Baltic Sea States (CBSS) member states held an informal discussion today at the Palace of the Commonwealth in Warsaw. High Representative of the Union for Foreign Affairs and Security Policy Kaja Kallas also took part in the meeting.
Poland currently holds Presidency of the CBSS. The meeting was convened at the initiative of the Polish Presidency to address the need to strengthen the organisation’s political dimension and initiate an in-depth discussion among the region’s countries on the current security challenges.
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Originally published on 4 Mar