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Latvia is one of the three Baltic states located in Northern Europe, bordered by Estonia to the north, Lithuania to the south, Russia to the east, and Belarus to the southeast, with a western coastline on the Baltic Sea. The country covers a total area of approximately 64,589 square kilometers.
The population of Latvia has been experiencing a declining trend since the 1990s, decreasing from 2.6 million in 1991govinfo.gov. This demographic challenge is one of the key issues facing the country today. The official language of Latvia is Latvian, but a significant portion of the population (approximately 43%) has a language other than Latvian as their first languageEuropean Union, reflecting the country's diverse ethnic composition.
Latvia has a complex history marked by periods of foreign rule. The country declared independence on November 18, 1918, but was later occupied by the Soviet Union during World War II. Latvia regained its independence in 1991 following the collapse of the Soviet Union. In 2018, the country celebrated its centenary of statehoodEuropean Union.
Latvia is now a parliamentary republic and has been a member of both the European Union and NATO since 2004新华网. The country's integration into these Western institutions has been a cornerstone of its foreign policy since regaining independence.
Latvia's economy has shown remarkable resilience and growth, particularly after the 2008 financial crisis. Since 2010, Latvia's real GDP growth has been among the fastest in Europeimf.org, although there have been periods of slowdown. The most prominent sectors in the Latvian economy remain traditional industries such as food production, wood, and timber, which account for the largest share of value addedEuropean Union.
The country has been working to diversify its economy and promote innovation, particularly in the technology sector. Latvia ranks 8th in the EU for the availability of online government services, with 38% of citizens using eGovernment servicesEuropean Union, indicating a relatively high level of digital adoption in the public sector.
In February 2020, the Latvian Government released its national AI strategy titled "Developing artificial intelligence solutions"European Union. The objective of this strategy is to promote the uptake and growth of AI across the entire economy, with particular attention to its application in public administration.
The strategy outlines several key policy areas:
The Latvian strategy identifies priority sectors with high potential for AI applications, such as transport (Intelligent Transport Systems)European Union. The Ministry of Interior has planned to spend approximately €1.5 million on digitalization with a focus on AIEuropean Union.
Tilde is Latvia's most prominent AI company, specializing in language technology and machine translation. The company has developed state-of-the-art neural machine translation technologies and is a recognized leader in this field within the Baltic region and beyond.
One of Tilde's notable achievements is the development of the EstLat Translator, the first cloud-based solution for written translations between Estonian and Latvian. This machine translator was developed in collaboration with the translation agency Avatar (Estonia) and was presented in April 2021European Union. The neural machine translation system was trained on almost 24 million sentences and does not rely on a third language for translation.
Tilde has also collaborated with government agencies. For instance, the company cooperated in the development of UNA, a conversational agent that uses AI technologiesEuropean Union. This demonstrates Tilde's role in supporting public sector digital transformation.
In recognition of its innovative work, Tilde was awarded one of the Large AI Grand Challenge prizes by the European Commission in 2024. This award includes a share of a €1 million prize and access to Europe's world-leading supercomputers for 8 million hours, which will be used to develop innovative large-scale AI modelsEuropean Union.
Riga Technical University (RTU) is a key player in Latvia's AI ecosystem, contributing to research and development in software engineering, AI, natural language processing, and data analysisEuropean Union. The university plays an important role in training the next generation of AI specialists and conducting research that can be applied in industry.
Latvia has a developing startup ecosystem that includes organizations like Riga TechHub, which serves as a community for tech entrepreneurs and startups in the countryEuropean Union. The Investment and Development Agency of Latvia (LIAA) works to increase export and competitiveness of Latvian companies, facilitate foreign investment, and implement tourism development and innovation policiesEuropean Union.
Despite these support structures, it has been noted that Latvian startups could benefit significantly from greater presence and participation in EU funding opportunities. According to Labs of Latvia, there are many underused EU funding opportunities that could help Latvian startups growEuropean Union.
LIAA has observed that many startups have successfully collaborated with scientists to create new productsEuropean Union, indicating a positive trend in academia-industry partnerships in the innovation ecosystem.
Despite the strategic focus on AI development, the adoption rate of AI technologies among Latvian enterprises remains relatively low. As of 2020, less than 10% of enterprises in Latvia used any of the four AI applications surveyed by EurostatEuropean Union. This suggests that while there is a strategic vision for AI development, practical implementation across the economy still faces challenges.
Latvia presents an interesting case of a small Baltic nation working to position itself in the global AI landscape. With a strong focus on language technology through companies like Tilde, the country has found a niche where it can excel internationally. The national AI strategy demonstrates a comprehensive understanding of the multifaceted approach needed to develop an AI ecosystem, addressing education, infrastructure, legal frameworks, and application areas.
For anyone interviewing a data expert from Latvia, understanding this context of a country with a strong traditional economic base transitioning toward digital innovation, with particular strengths in language technology, will provide valuable background. The expert is likely to be familiar with the national AI strategy and may have insights into how it is being implemented in practice, as well as the challenges of AI adoption in a small country with a declining population but ambitious technological goals.