To develop the Ukrainian AI market, it is crucial to focus on tech education, foster collaboration among various market players, and avoid overly strict regulation within the industry. Serhiy Tokarev, a tech entrepreneur and co-founder of Roosh, an investment group that develops and scales tech businesses globally, discussed this in the op-ed for Forbes Ukraine.
According to Tokarev, Roosh, in collaboration with the AI HOUSE community and with support from the Ministry of Digital Transformation of Ukraine, has studied the Ukrainian AI ecosystem. They found that Ukraine ranks second among Central and Eastern European countries in terms of the number of AI companies. In 2023, AI startup funding increased by 35% compared to 2022.
“The world is noticing our progress. For instance, Zibra AI, a Roosh X’s deep-tech portfolio company that simplifies the process of creating computer games using AI. Their technology is used by over 116,000 developers worldwide. And in 2023, Zibra AI secured half a million in investment from the Speedrun accelerator launched by a16z,” the investor notes.
At the same time, two years of full-scale invasion have significantly impacted the country’s technology sector. In particular, there has been an outflow of personnel, with many Ukrainian specialists relocating to other countries.
This problem can be solved by focusing on improving Ukrainian tech education, making it high-quality and accessible. However, the entrepreneur points out that the industry lacks both teachers and funding. Tech professionals often choose to work in business rather than train future experts, and most educational institutions do not have the autonomy to raise funds independently.
Another challenge facing the Ukrainian AI industry is the decline in venture capital investments in AI-related projects. Due to the risks associated with the war, investors are in no hurry to invest in Ukrainian companies.
Serhiy Tokarev emphasizes the urgency of addressing these issues now. The country’s victory in the war and its future economic development depend on technological advancement.
First and foremost, it is important to provide high-quality education for students in AI programs. Future specialists should master both technical and soft skills. Only those specialists who know how to communicate, organize workflow, and have sufficient practical experience will be able to compete effectively in the modern labor market. Tokarev notes that today, some Ukrainian universities are already collaborating with technology companies that want to train specialists for the industry. This is exactly how the technological education system should function.
It is equally important to organize events and platforms where academic institutions, businesses, and the state can interact. The partnership of these three sectors is the key to the country’s technological development.
Another step that will foster the growth of the Ukrainian AI sector is the liberal regulation of the industry.
“I have repeatedly said that overly strict control of the AI industry will only slow down progress. Today, as more and more countries impose restrictions on AI development, Ukraine can become a platform for testing AI technologies of large companies and strengthen its position in the industry,” the investor emphasizes.
He adds that the state is already working in this direction. The Ministry of Digital Transformation of Ukraine has developed a roadmap for the regulation of Artificial Intelligence. According to this roadmap, the current priority is cooperation between the state and AI companies, allowing the latter to develop and test technologies. Subsequently, a legislative framework will be designed to regulate the sector.
