Estonia’s National Artificial Intelligence Strategy (Kratt Strategy) for 2022–2023

Estonia’s national AI strategy, known as the Kratt Strategy, outlines the country’s approach to integrating AI across public services, private enterprises, research, and legal frameworks. It builds upon the 2019–2021 strategy, which initially laid the foundation for AI adoption by expanding implementation efforts and ensuring that AI solutions align with principles of human-centred and trustworthy AI.

The strategy serves multiple objectives. It aims to enhance public sector efficiency, support private businesses in AI adoption, foster AI research and education, and develop a regulatory environment that ensures responsible AI deployment. Estonia views AI as a tool to improve governance, economic competitiveness, and digital infrastructure, making it a key enabler of its broader digital agenda.

The Kratt Strategy is structured around several key focus areas, each with specific policies and funding allocations. The strategy is supported by at least €20 million from 2022 to 2023, with an additional €100 million allocated for general digitization, which includes AI initiatives. Funding is directed toward AI research, business adoption, training programs, and infrastructure development to ensure Estonia remains a leader in AI-driven digital governance.

Strategic objectives
The primary objectives of the Kratt Strategy are:

1. Expanding AI adoption in the public sector – developing digital services that leverage AI to improve accessibility, efficiency, and user experience.
2. Supporting AI implementation in private businesses – helping companies integrate AI into their operations, increasing competitiveness, and driving innovation.
3. Advancing AI research and education – strengthening AI-related academic programs, research funding, and workforce training.
4. Ensuring high-quality data availability – promoting open data policies to support AI development while ensuring ethical data management.
5. Developing legal and regulatory frameworks for AI – aligning Estonia’s AI laws with EU regulations while addressing national needs for legal clarity on AI applications.

AI in the public sector

The public sector’s main objectives are:

• Increase AI adoption in institutions that have not yet implemented AI.
• Improve the efficiency of widely used digital services with AI components.
• Promote human-centred and trustworthy AI.

Key targets (by 2023):

• 130 AI solutions deployed in public institutions (up from 80).
• 60 public sector institutions using AI (up from 40).
• 10 widely used digital services integrating AI.
• 40 open-source AI components developed.
• Launch of Bürokratt, an AI-based virtual assistant for public services.

Main initiatives:

• AI Training & competency building: Training courses for officials, AI awareness programs, and guidelines for AI adoption.
• Bürokratt development: A virtual AI assistant to interact with citizens.
• AI infrastructure: Development of shared computing resources via Estonia’s Government Cloud.
• Legal certainty: Establishing frameworks for AI implementation and data usage in public institutions.

AI in the private sector

The private sector strategy is designed to increase AI adoption, improve business efficiency, and enhance R&D partnerships.

Key targets (by 2023):

• 180 digital maturity assessments for businesses.
• 150 feasibility assessments for AI and robotics solutions.
• 27 AI pilot/demo projects completed.
• 450 industry employees trained in AI.
• 6-8 AI-based pilot projects funded.

Main initiatives:

• AIRE Centre for AI and Robotics: Supports businesses with AI adoption.
• Development Marathons & AI Accelerator Programs: Helps startups and enterprises implement AI.
• Financial Support: Grants for AI adoption, including €56 million for automation, €16.48 million for applied research, and €19.84 million for R&D cooperation.
• AI-focused Business Incubation: Industry-specific support and training programs.

AI in R&D and education

Estonia aims to strengthen its AI research capabilities and train the workforce for an AI-driven economy.

Key targets:

• Maintain €1.5 million per year in AI R&D funding.
• Expand AI-focused PhD programs (target of 80 IT PhDs per year).
• Improve AI skills integration in vocational and higher education.

Main initiatives:

• IT Academy Research Program: Funds AI-related studies.
• Language Technology Development: Ensures AI supports the Estonian language.
• High-Performance Computing Access: Estonia is part of EuroHPC & LUMI supercomputing initiatives.

Data as an enabler

Data is crucial for AI development. Estonia aims to improve data availability, quality, and accessibility.

Key Targets (by 2023):

• 1,800 open datasets available (up from 709).

Main initiatives:

• Open data strategy: Ensuring public data is machine-readable and accessible.
• “High Value” datasets initiative: Defines priority datasets for AI training.
• Legal frameworks for data processing: Ensuring ethical AI deployment.

Legal & regulatory framework

Estonia aligns with EU AI regulations and adapts national laws to support AI deployment.

Main initiatives:

• Amendment of the Administrative Procedure Act to enable automated administrative decisions.
• Participation in EU AI Regulation Development (Artificial Intelligence Act).
• Development of AI-specific Civil Liability Rules.

The implementation of the strategy is managed by the Ministry of Economic Affairs and Communications (MEAC) in collaboration with the Ministry of Justice (MJ) and the Ministry of Education and Research (MER). These ministries work with key stakeholders such as universities, research institutions, businesses, and international organizations. A dedicated steering group monitors progress, evaluates the impact of AI initiatives, and adjusts policies based on technological advancements and societal needs.