The digital transformation of the Western Balkans is already a reality. From public administration to banking, from universities to startups, artificial intelligence is rapidly entering numerous sectors, offering new opportunities for economic growth, innovation, and the modernisation of services.
Regulation, however, is not advancing at the same pace.
While the adoption of AI is accelerating across the region, many countries still lack a comprehensive regulatory framework capable of governing its use. The result is an increasingly evident gap between technological innovation and the capacity of institutions to govern it. In a context where all Western Balkan countries are engaged, albeit at different speeds, in the process of European integration, the governance of artificial intelligence is becoming not only a technological challenge but also a new political one.
Serbia is currently the region’s most advanced case. It was the first country in South-Eastern Europe to adopt a National Strategy for the Development of Artificial Intelligence in 2019, which has recently been updated for the 2025–2030 period. Belgrade is also home to the AI Institute of Serbia, a research centre that brings together universities, public institutions, and businesses with the aim of developing AI applications in healthcare, industry, agriculture, and public administration.
Albania is also making significant investments in digital transformation. Through the e-Albania platform, a large share of public administrative services is now available online, and the government is showing growing interest in the potential of artificial intelligence to improve the efficiency of public administration. At the same time, the country’s EU accession process will require a gradual alignment with European standards, including those concerning AI.
In the remaining Western Balkan countries, the picture is more varied. Montenegro is developing its own national strategy with the support of European partners, while North Macedonia has identified digitalisation as one of the priorities of its reform agenda. In Bosnia and Herzegovina, institutional fragmentation makes it more difficult to develop coordinated policies, despite the fact that universities and businesses are already experimenting with artificial intelligence applications. Kosovo is also experiencing significant growth in its technology ecosystem and digital startup sector, but it still lacks a comprehensive framework dedicated to AI governance.
These differences demonstrate that technological innovation is not waiting for politics. Artificial intelligence applications are spreading rapidly, while legislation, regulatory authorities, and mechanisms to protect citizens are still struggling to keep pace.
The issue is far from theoretical. Who is accountable if an algorithm discriminates against a citizen when accessing a public service? How can transparency be ensured when decisions that affect people’s lives are entrusted to automated systems? What tools are needed to prevent algorithmic discrimination and protect personal data?
These are the very questions that the European Union has sought to address through the AI Act, the world’s first comprehensive regulatory framework dedicated to artificial intelligence. The regulation introduces a risk-based approach: the greater the potential impact of an AI system on fundamental rights, public safety, or the functioning of democratic institutions, the greater the obligations imposed on those who develop or deploy it.
For the Western Balkans, this represents much more than a simple legislative update. As has already happened with competition policy, data protection, and environmental legislation, the regulation of artificial intelligence will gradually become part of the EU acquis that candidate countries are required to adopt as they move forward in the accession process.
Regulation should not be interpreted as an obstacle to innovation. On the contrary, clear rules can strengthen public trust, attract investment, and create a more competitive digital ecosystem. A stable regulatory framework provides greater certainty for businesses investing in AI development while ensuring that technological progress advances in full respect of democratic principles and fundamental rights.
The challenge facing the Western Balkans will therefore be twofold: to continue fostering innovation without giving up the construction of strong institutions capable of governing it. This will require not only new legislation, but also investments in digital skills, public administration training, cybersecurity, data protection, and the strengthening of independent regulatory authorities.
Artificial intelligence is also rapidly becoming a new indicator of the institutional maturity of countries aspiring to join the European Union. The ability to combine innovation, transparency, and the protection of fundamental rights will increasingly determine whether these countries can build a digital ecosystem that meets European standards.
Ultimately, the question is not whether artificial intelligence will shape the future of the Western Balkans: it is already doing so. The real challenge is ensuring that innovation strengthens democracy, the rule of law, and citizens’ trust, rather than advancing faster than the ability of institutions to govern it. If the region succeeds in seizing this opportunity, AI can become not only a driver of economic growth but also another important step towards a more resilient, competitive, and fully European future.
Sources
- Courrier des Balkans, Dans les Balkans occidentaux, l’IA progresse plus vite que la loi.
- Governo della Repubblica di Serbia, Strategy for the Development of Artificial Intelligence 2025–2030.
- AI Institute of Serbia.
- Commissione europea, European Approach to Artificial Intelligence (AI Act).
- Governo della Repubblica d’Albania, piattaforma e-Albania.
- BIRN – Balkan Insight, Amid Concern over AI Abuse in Montenegro, Lawmakers Play Catch-Up.
- European Bank for Reconstruction and Development (EBRD), Programme to help the Western Balkans go digital.