Ukraine ranks second among Central and Eastern European countries in terms of the number of AI companies. In 2023, AI startup funding increased by 35% compared to 2022. The Ukrainian IT sector is making strides, even though two years of a full-scale invasion have affected it. Sergey Tokarev, a tech entrepreneur and co-founder of Roosh, shared insights on how to develop the Ukrainian AI market.
Sergey Tokarev notes that focusing on tech education, fostering collaboration among various market players, and avoiding overly strict regulation within the industry promotes developing the Ukrainian AI market.
“The world is noticing our progress. For instance, Zibra AI, a Roosh X’s deep-tech portfolio company that simplifies the process of creating computer games using AI. Their technology is used by over 116,000 developers worldwide. And in 2023, Zibra AI secured half a million in investment from the Speedrun accelerator launched by a16z,” notices Tokarev.
However, the war has significantly impacted the country’s technology sector. In particular, there has been an outflow of personnel, with many Ukrainian specialists relocating to other countries.
Sergey Tokarev believes that this problem can be solved by focusing on improving Ukrainian tech education, by making it high-quality and accessible. The entrepreneur also points out that the industry lacks both teachers and funding. Tech professionals often choose to work in business rather than train future experts. When it comes to educational institutions, they do not have the autonomy to raise funds independently.
Another crucial challenge facing the Ukrainian AI industry is the decline in venture capital investments in AI-related projects. International investors do not risk investing in Ukrainian companies for the war’s reason. The businessman underlines that these issues need to be addressed urgently. However, the country’s victory in the war as well as its economic growth depend on technological advancement.
According to Sergey Tokarev, the vital conditions for the Ukrainian AI market to prosper involve the following:
- High-quality education for students in AI programs. Future specialists should master both technical and soft skills. Only those specialists who know how to communicate, organize workflow, and have sufficient practical experience will be able to compete effectively in the modern labor market.
- Events and platforms where academic institutions, businesses, and the state can interact. The partnership of these three sectors is the key to the country’s technological development.
- The liberal industry’s regulation to foster the growth of the Ukrainian AI sector.
The entrepreneur adds that the state is already working in this direction. The Ministry of Digital Transformation of Ukraine has developed a roadmap for AI regulation in which the current priority is cooperation between the state and AI companies. This allows the companies to develop and test technologies. Over time, a legislative framework will be designed to regulate the sector.