Artificial Intelligence in Croatia: Challenges, Potential, and the Need for a Strategic Direction

This is a document of key importance for positioning Croatia in the global race for the development and application of AI technologies, which is already strongly influencing the economic and political power of individual countries.

Three pillars of development

The National Plan, as announced by the Minister of Justice, Public Administration and Digital Transformation Damir Habijan, is expected to be based on three pillars: defining public policies, investment, and the application of artificial intelligence. In addition to government bodies, the document's drafting process will involve the private sector and the academic community. Although the exact composition of the working group is not yet known, the inclusion of all relevant stakeholders is crucial to achieving a high-quality, comprehensive solution.

The planned areas will cover education and skill development, digitalization of the private sector, financial incentives, and the protection of citizens' rights and privacy. The latter segment, as the Minister emphasized, is particularly sensitive and important in the context of balancing technological progress with individual safety.

EU falling behind, and Croatia lagging

Reports such as the Stanford AI Index 2025 clearly show the dominance of the USA and China in AI development. Last year, the Americans developed 40 significant AI models, the Chinese 15, while the entire Europe produced only three. WIPO’s report on GenAI patents further confirms Europe’s weak performance—none of the top five countries by number of filed patents are European.

In this context, Croatia is in an even more unfavorable position. Our AI landscape includes only 84 companies that have collectively secured 107 million dollars in investment. Croatia is simply absent from charts of major AI models and investments. This is not just a statistical signal—it is a call to urgent action.

A long road to a clear strategy

Despite talks about the National Plan since 2023, actual progress was slowed by the reorganization of ministries following the formation of the new government. Digitalization has been moved under the Ministry of Justice, and the plan is now being drafted from scratch. This further delays Croatia’s already late inclusion in strategic AI development planning.

A particular challenge is the lack of proactivity in utilizing available EU funds. The European Union plans to invest 20 billion euros of public money in AI infrastructure, including high-performance giga-factories for training and testing models. However, Croatia is not among the 13 countries where such infrastructure will be built. The reason? The absence of a strategic plan that would serve as the foundation for securing funds.

An opportunity that must not be missed

AI is not a passing trend. It is a technology that will redefine the economy, labor market, education, security, and everyday life. If Croatia wants to remain competitive, it must create a regulatory, educational, and investment framework that enables the development of domestic solutions and positions the country on the European and global AI scene.

The opportunity for reindustrialization and strategic positioning of the IT sector has already been missed. In the era of artificial intelligence, we can no longer afford to repeat past mistakes.

The formation of the National Artificial Intelligence Plan and its timely implementation are no longer a matter of choice, but a necessity. It is a key step toward creating a smart, digitally ready, and globally relevant Croatia. There is no more time to delay.