Azerbaijan’s Model in the Technological Race - ANALYSIS

Azerbaijan’s Model in the Technological Race - ANALYSIS

The Acting Head of the Digital Trade Hub at the Center for Analysis of Economic Reforms and Communication (CAERC), Aygun Ahmadova, has given an interview to the Report Information Agency on Azerbaijan’s positioning in the global technological race.

Over the past century, industrial revolutions have formed the foundation of humanity’s technological progress. At the current stage, not only technologies but also the present and future of industry itself are closely linked to the intelligence revolution. The artificial intelligence revolution is becoming one of the deepest and most systemic technological breakthroughs in human history.

Artificial intelligence already serves as the main driving force behind technologies such as big data, robotics, and the Internet of Things (IoT). Generative AI has elevated automation to a qualitatively new level. This involves the extensive use of technology and software to optimize and simplify repetitive tasks and business processes. Labor-intensive manual operations are being replaced by automated systems capable of performing tasks with minimal human intervention. This approach reduces errors and delays, minimizes dependence on manual labor, and increases efficiency, accuracy, productivity, and economic viability.

Artificial intelligence not only automates processes but also enables the creation of new products and services, the improvement of existing solutions, and the formation of innovative business models. Optimization tools reduce costs and resource consumption, thereby easing environmental pressure. In this sense, artificial intelligence aligns economic efficiency with environmental responsibility.

Artificial intelligence accelerates decision-making

The ability of artificial intelligence to analyze large volumes of data and convert results into clear and visual formats significantly accelerates decision-making processes. This technology allows computers, robots, and drones to interpret their environment, process data, learn from it, and independently make decisions and take appropriate actions without human intervention. The capacity to learn from data and act accordingly is the defining feature of the intelligence revolution.

However, artificial intelligence requires large volumes of data to learn and make informed decisions. It is therefore no coincidence that data is now described as the new gold and a strategic asset of the modern era. At the same time, artificial intelligence itself has generated an unprecedented flow of data in recent years. Estimates show that approximately 90 percent of the world’s existing data has been created within just the last two years.

Storing and processing such volumes of data requires powerful and flexible infrastructure. This role is fulfilled by data centers. Today, more than 11,800 data centers operate worldwide, and their number continues to grow. Artificial intelligence is no longer only a consumer of computing power. It has become a strategic factor shaping the development path of the entire sector.

The emergence of new technological generations such as artificial general intelligence (AGI), autonomous AI systems, and quantum-enhanced machine learning models is expected to lead to major qualitative changes in the efficiency, flexibility, and sustainability of data centers.

The architecture of technological competition is undergoing deep transformation

Current trends in the global ICT market show that the development of artificial intelligence and data processing infrastructure has become not only a technological advantage but also one of the key pillars of long-term national competitiveness. Timely actions in this field will determine countries’ economic weight and geopolitical positions both today and in the decades ahead.

In his recent interview with local television channels, Ilham Aliyev emphasized that one of Azerbaijan’s strategic goals is to become a regional artificial intelligence hub and IT center. He noted that work is underway with partners to establish data centers, create a cybersecurity center, and train specialists. Both international training programs and domestic education initiatives are being implemented. The President underlined that strong political will exists and that American companies are viewed as key partners in this process.

According to Aygun Ahmadova, the steps taken in Azerbaijan over the past year demonstrate that these goals have already taken on a concrete institutional framework. A major milestone in this direction is the adoption of the Artificial Intelligence Strategy of the Republic of Azerbaijan for 2025 to 2028. One of the Strategy’s main priorities is the development of national AI human capital and the acceleration of digital transformation.

The Artificial Intelligence Academy established for this purpose offers educational programs aligned with international standards and based on the experience of leading global universities. Professors and scholars from institutions such as MIT, the University of California, Carnegie Mellon, Harvard, and Stanford are expected to participate as guest lecturers. This directly connects local talent development with the global knowledge ecosystem.

To meet the growing computational demands associated with artificial intelligence, the establishment of a Supercomputing Center further strengthens the technological foundations of this strategy. Designed for innovation entities, business structures, and government projects, the center is equipped with high-performance computing systems based on NVIDIA H200 GPU chips. This infrastructure enables large-scale data processing and the rapid execution of complex AI models, allowing domestic projects to be developed within the country without reliance on external resources. Work is currently underway to expand the center’s capabilities through the acquisition of next-generation GPU chips.

Artificial intelligence becomes the locomotive of technological progress

Azerbaijan’s policy in this field has also attracted international attention. According to the Oxford Insights Government AI Readiness Index 2025, Azerbaijan was recognized as the country with the fastest progress in artificial intelligence readiness worldwide. The country advanced from 111th to 70th place within one year, while its overall score increased from 39.92 to 48.96. Azerbaijan became the leader in the South Caucasus and ranked third in Central Asia.

Indicator-level scores confirm the structural nature of this progress. Government policy capacity stands at 53.5, AI infrastructure at 46.21, governance at 50, AI adoption in the public sector at 66.97, development and diffusion at 34.73, and resilience at 58.27.

Ahmadova emphasizes that the President’s focus on data center development and Azerbaijan’s energy advantage has strategic importance from a global perspective. Large-scale data centers and AI models that require high computing power face serious barriers in countries with limited energy resources. Azerbaijan, however, is one of the few countries in the region with an additional 2 gigawatts of electricity reserve. This allows the country to transform a potential constraint into a strategic advantage. The alignment of this advantage with the green energy agenda further strengthens its impact.

She notes that this approach fully aligns with both the Artificial Intelligence Strategy for 2025 to 2028 and the Digital Economy Strategy for 2026 to 2029. The AI Strategy prioritizes strengthening the talent base through computing and data infrastructure, the AI Academy, training programs for managers, education of engineers and specialists, financing scientific research, and establishing cooperation between science and industry.

According to Ahmadova, the Digital Economy Strategy aims to convert this potential into real economic value across industry, logistics, finance, small and medium-sized enterprises, and public administration. The creation of data centers and the formation of a regional AI and IT hub depend on the consistent and coordinated implementation of these strategies. Turning these goals into tangible results will play a decisive role in achieving Azerbaijan’s ambition to become a regional center for artificial intelligence and information technologies.