Over the past two years, more than €52 million has been made available for digitization and the implementation of artificial intelligence solutions through business support programs offered by the Investment and Development Agency of Latvia (LIAA). A total of 3,689 project applications were received. Some of them have already been implemented, but most are still in the process of being implemented.
"Digitalization and artificial intelligence solutions are currently one of the strongest catalysts for economic growth. Data from the Organization for Economic Cooperation and Development (OECD) confirms that companies that implement digital tools and automate processes increase their productivity by an average of 20-30%, while the use of artificial intelligence in data analytics and process management can reduce resource consumption by up to 40%. For Latvia, this is an opportunity to rapidly increase the competitiveness and export capacity of companies and create higher value-added products," emphasizes Ieva Jāgere, Director of the LIAA.
Companies could attract up to €200,000 for the implementation of digitalization and artificial intelligence solutions in LIAA programs, but in the first round of the program – up to €100,000.
The most common solutions applied for by companies were process automation and robotized workflows, data analytics and forecasting tools, integrated management system development, warehouse and logistics digitization, including Internet of Things solutions, as well as artificial intelligence-based customer service tools. These projects are typically aimed at increasing efficiency and productivity and require relatively moderate investments, providing companies with immediate, measurable benefits, thus achieving the program's goal of promoting higher added value and competitiveness in Latvian business.
In the second round of the digitization support program, special emphasis was placed on artificial intelligence solutions. Support under this program is also being used by Kinetics Nail Systems, which this fall began construction of a new production facility in Ādaži with an investment of seven million euros. The company's founder and CEO, Andžejs Stenclavs, emphasizes that with state support, he plans to develop a digital label design system. The system will provide a fully automated and AI-supported process, allowing customers to create their own brand labels online, as well as generate print-ready files and 3D visualizations. The total cost of this project is estimated at €159,660, with state support amounting to €63,864. The company manufactures personalized nail care products, 95% of which are exported to 42 countries around the world.
Woodheart will use state aid to purchase a five-axis CNC milling machine with artificial intelligence functionality. The total cost of the project is EUR 165,000, while the aid will amount to EUR 63,988. The carpentry company plans to improve its productivity and increase its export volumes. Currently, Woodheart exports up to 80% of its production to 17 countries around the world, including New Zealand and Canada.
Meanwhile, Printseekers, a company that provides on-demand printing services, plans to use the program's support to purchase a robotic photo wallpaper and photo canvas production line with artificial intelligence functionality. The total cost of this project is €340,000, with €170,000 in support.
The Digitalization and Artificial Intelligence Solutions Program is financed by the European Union's Cohesion Policy Program for 2021-2027 and the Recovery Fund.
About LIAA
LIAA promotes the competitiveness of Latvian entrepreneurs, export growth and investment attraction, as well as develops the tourism sector and implements the country's image policy. The agency acts as a state partner in business development – from idea to international markets. With an extensive network of representative offices abroad and regional business centers in Latvia, LIAA helps companies grow and positions Latvia as a secure, innovative, and open country in the global economy.
Translated with DeepL (free version)
