AI is developing rapidly in Serbia and numerous initiatives are emerging daily. Therefore, a working group, which includes our Schoenherr expert Marija Vlajković, is already in the process of drafting a new Law on Artificial Intelligence. The final draft is expected by spring 2025.
Serbia is making significant strides in AI regulation, with preparations underway for a new AI development strategy for 2024–2030, followed by an action plan. This complements the existing Strategy for AI Development (2020–2025), which aligns with the European Commission's AI policies. The public consultation phase for the new strategy has been completed, and upcoming amendments, voting and adoption are expected by the end of 2024 or early 2025. Both the current and upcoming strategies lay the foundation for the widespread application of AI in education, the economy, public sector services and other areas. The primary goal is to ensure the development and safe application of AI, while also achieving sustainable development objectives.
In 2023, Serbia introduced Ethical Guidelines for the Development, Application and Use of Responsible AI, aimed at preventing and mitigating risks and harm to human work potentially caused by AI technology, as well as preserving individual freedom of action and decision-making when interacting with AI. Although non-binding, these guidelines, along with the strategies, clearly indicate Serbia's strong commitment to regulating AI.
Meanwhile, the Council for Artificial Intelligence has been established to coordinate activities for implementing the strategic framework, with its first meeting already held. In addition to its advisory role, the Council is tasked with defining and monitoring the implementation of the action plan in line with the AI Development Strategy, making amendments to that strategy, and working on the upcoming one. The Council will also oversee the drafting of the new AI Law.
Serbia's AI ecosystem
Serbia ranks 57th out of 193 countries in the AI Readiness Index (Oxford Insights, 2023), making it a leading country in the field of AI within the Western Balkans. As a member of the Global Partnership on AI (GPAI), an initiative that aims to establish global standards and rules for AI development and accelerate AI progress worldwide, Serbia has joined global leaders like the US, UK and Israel in shaping AI governance. Over the next three years, Serbia will play a key role in GPAI, serving as first and third assistant chair in the first and third years, and main chair in the second year.
The National AI Platform, within the scope of the Data Centre, is a supercomputer designed to support AI-related tasks, providing the AI community in Serbia with easier access to advanced computing resources. Additionally, the Institute for AI Research and Development of Serbia plays a crucial role in advancing AI solutions, collaborating with both academia and industry to implement AI in sectors such as healthcare, manufacturing and public administration.
Serbia also hosts prominent AI-related events, such as the Data Science Conference (DSC), one of Europe's largest conference in the domain of AI. Other major events, like Splet Tech, further highlight Serbia's growing focus on AI, positioning the country as an emerging player in the global start-up scene.
Promoting AI development
Serbia fosters AI innovation through grants, tax incentives and start-up support. Companies involved in R&D benefit from salary tax exemptions and corporate tax incentives, making Serbia an attractive destination for AI-related investments.
Numerous public sector companies, educational institutions and local businesses are actively promoting AI by developing AI products, including state-of-the-art AI-powered hardware systems, as well as advancing AI applications through study programmes, conferences and corporate solutions. Early adopters are at the forefront, experimenting with AI, hosting free training sessions, and contributing to the ecosystem.
Future prospects
As a signatory to the Stabilisation and Association Agreement, Serbia has one of two key obligations: regulatory alignment with EU law. With some negotiation chapters already opened, the question remains whether Serbia's new Law on AI will mirror the EU AI Act in the same manner as the Serbian Data Protection Act, which was modelled against the GDPR.
Serbia's regulatory advancements, robust AI infrastructure and support for innovation point to a promising future for AI in the country. With the upcoming AI law and strategy, Serbia is well-positioned to solidify its role as a leader in AI within the region and beyond.
By Andrea Radonjanin and Marija Vlajkovic, Partners, and Andrej Zoric and Marija Lukic, Associates, Schoenherr
