Artificial intelligence market in Czechia

In July 2024, Czechia adopted a new national strategy to become a leader in artificial intelligence (AI) technology by 2030 with planned public investments of CZK 19 billion (CAD 1.1 billion). According to Statista, the size of the AI market in Czechia will increase fivefold to reach $3.4 billion in 2030.

Czechia has a well-established information technology (IT) industry with a robust startup ecosystem and leading research centres. Prague and Brno are home to more than 80% of AI companies. Both cities have dynamic organizations (Prg.ai and Brno.ai) that actively promote collaboration in the IT sector to spur innovation and support its growth.

Key opportunities for Canadian AI companies in Czechia

  • AI solutions for the manufacturing industry, notably for automotive and engineering
  • AI-powered cybersecurity solutions for the public and private sectors
  • AI tools for small to medium enterprises (SMEs) (only 5% of Czech companies with 10 to 249 employees used AI technologies in 2023 according to Eurostat)
  • Research and development (R&D) partnerships with Czech organizations through the Horizon Europe program

Notable challenges for Canadian AI companies in Czechia

  • Czech companies are usually not early adopters of new technologies and prefer suppliers with a demonstrated experience in Europe
  • Like all member states, Czechia is struggling with the implementation of the AI Act of the European Union which will be effective as of August 2, 2026

Industry highlights

1st

in Central and Eastern Europe (CEE) for AI talent (Global AI Index 2024)

2nd

in CEE for AI capacity (Global AI Index 2024)

2nd

in CEE for AI readiness (Government AI Readiness Index 2023)

237

AI startups (Tracxn)

Czech business landscape

Czechia is a medium-sized, open economy with a strong industrial base and thriving technology sector. Due to its geographic location at the centre of Europe, a highly skilled workforce (including in science, technology, engineering and mathematics (STEM)), and a stable business environment, Czechia is a regional hub for many foreign companies. Czechs enjoy a strong purchasing power with gross domestic product (GDP) per capita having increased to 91% of the EU average since the country joined the union in 2004. Czechia has not yet adopted the Euro as its currency. English is spoken widely in the business community, particularly in Prague and Brno.

For more information on AI and the Czech market please contact martina.taxova@international.gc.ca

Additional Information

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