Ukraine ranks second in the number of AI companies in Central and Eastern Europe: results of the artificial intelligence research

The goal of the research "AI Ecosystem of Ukraine: Talent, Companies, Education" is to capture the state of the innovative sector and analyze key challenges and opportunities in the field.

Thanks to this data, companies can better understand their strengths and weaknesses, while the government can create more effective policies for AI development. The study was conducted by the Ministry of Digital Transformation in collaboration with Ukraine's largest AI community, AI HOUSE, and the investment group Roosh.

"Ukraine quickly embraced the AI trend. We are implementing it in defense, education, and public administration, and the world learned about our AI companies even before artificial intelligence became mainstream. However, to move forward, we need to analyze the current state of the sector and understand its strengths and weaknesses. This research describes the AI ecosystem in Ukraine. The results show where we are now, where we are heading, and which areas need strengthening. The government needs this data to effectively remove any blockers to AI development. These changes will allow Ukraine to become a global AI hub where breakthrough technologies of the future are created," said Oleksandr Bornyakov, Deputy Minister of Digital Transformation for IT Development.

The research is based on data from global and Ukrainian rankings and comments from industry experts. A total of 350 Ukrainian AI/ML specialists and 42 representatives from education, top managers of IT companies, accelerators, funds, and communities were surveyed.

"AI communities with high group dynamics are the driving force behind the creation of new ideas, solutions, and businesses. They unite all market players, which leads to close collaboration across the entire ecosystem at all levels," emphasized Bohdan Ponomar, President and Board Member of AI HOUSE, co-founder of Roosh Circle and Gathers.

The research provides an overview of the main elements of the AI ecosystem in Ukraine — from investments and the labor market to education and government policy. It identifies the number of specialists and companies working with AI technologies in Ukraine, the contribution of Ukrainian scientists, the prospects and challenges facing the Ukrainian AI community, and expert opinions on how to address these issues.

Key findings of the research:

• Over the past ten years, the number of AI/ML specialists has increased fivefold and stands at 5,200 professionals as of January 2024. 36% of all specialists are aged 21-25.

• The most common professions among specialists are Data Scientists and ML Engineers, together making up 63% of all specialists in the industry.

• Ukraine currently ranks second in the number of AI companies among Central and Eastern European countries. Over the past decade, the number of AI companies has more than doubled, from 97 to 243 as of the end of 2023.

• Compared to other European countries, Ukraine has a higher concentration of AI startups in marketing, gaming, and business software. This indicates accumulated expertise among Ukrainians in these areas.

• There are 44 Ukrainian and global venture funds actively investing in AI startups in Ukraine.

• AI/ML programs are offered in 42 Ukrainian universities, with 174 such programs and 106 dedicated solely to AI. This is nearly 12 times more than ten years ago.

• The largest AI development hubs in Ukraine are Kyiv with 177 company offices and Lviv with 43 offices. Other cities like Kharkiv, Odesa, and Dnipro stand out with an average of 21 companies each.

• The key challenges facing the AI sector in Ukraine, according to AI specialists, include interaction with other industries, competition, ethical challenges for companies, the transformation of talent and education, financial constraints, and talent loss due to Russia's full-scale invasion of Ukraine.

The full text of the research is available at the link.

The research was conducted by the consulting company Saturday Team on behalf of Ukraine's largest AI community AI HOUSE and the investment group Roosh with the support of the Ministry of Digital Transformation of Ukraine.