Montenegro lacks specific legal regulations or national strategies for AI, with current AI activities governed by general legal principles from existing laws. Despite the absence of detailed regulations or strong government support, public awareness of AI is relatively high, with 59.1 % of citizens familiar with the technology. Several initiatives are actively promoting the safe development and use of AI, reflecting a growing public interest in influencing future AI regulations.
Key legal gaps and challenges
The lack of AI-specific regulations poses significant challenges in applying existing laws to AI projects, potentially deterring investment. Key legal areas such as contracts, liability, labour and consumer protection are inadequately addressed in the context of AI, underscoring the urgent need for clearer regulations.
In particular, AI systems often process large volumes of personal data, raising serious privacy concerns in legal frameworks not aligned with the GDPR, as seen in Montenegro. This regulatory gap not only fails to provide adequate guidelines for data protection and privacy issues related to AI, but also heightens the risk of data misuse due to Montenegro's weak general data protection framework. Although the Montenegrin Personal Data Protection and Free Access to Information Agency has yet to officially address these concerns, its publication of the "Overview of the Council of Europe Activities on AI" in July 2023 suggests that it may be awaiting further European guidelines to align its practices with EU standards.
Regarding the use of copyrighted works for AI training, Montenegro's Copyright and Related Rights Act lacks exceptions for text and data mining for commercial purposes. The Act's narrowly defined exceptions do not accommodate the use of copyrighted materials for AI training, and AI-generated works are currently ineligible for copyright protection, as existing legislation requires that a copyrighted work be an individual's spiritual and intellectual creation, implying it must originate from a natural person.
Promoting AI development
Despite the lack of a clear legal framework, several initiatives are fostering AI development in Montenegro. Both the President and the Government have expressed support for AI, aiming to make Montenegro a regional hub. AI is being integrated into strategic planning, such as in the draft Strategy for Higher Education, and the Innovation Activity Act and Innovation Fund are encouraging AI projects. The Montenegrin AI Association (MAIA) and the IT sector are also actively advancing AI, with notable projects like Uhura Solutions and AI integration in the media.
Future prospects
Montenegro is expected to align with EU AI regulations, particularly the Artificial Intelligence Act, but the lack of proactive government measures could cause it to fall behind neighbouring countries. In addition, the absence of a clear legal framework creates uncertainty for AI investments. To address emerging challenges, Montenegro will likely need to develop a national AI strategy or additional legislation, especially in areas like AI ethics.
By Andrea Radonjanin, Partner, and Luka Veljovic, Attorney at law, Schoenherr
