Poland’s digital push: A blueprint for regional leadership

 

Poland is aspiring to become a leader in Europe’s tech-driven future, powered by recent bold initiatives like the Artificial Intelligence (AI) Fund, which will allocate over 4.5 billion zlotys (EUR 1 billion) to the development of digital technologies, including AI, blockchain, and smart city solutions (PAP, 2025). This effort is complemented by Poland’s broader Digital Strategy 2035, which provides a long-term framework for enhancing digital infrastructure, strengthening cybersecurity, and driving innovation across sectors such as education, healthcare, and manufacturing.

Poland’s efforts are part of a broader ecosystem that includes institutions like the National Centre for Research and Development and the Innovation Centre for Digital Medicine. Notable ongoing projects, such as AI-based diagnostic tools in healthcare and blockchain-powered land registries, illustrate the tangible outcomes these institutions are delivering. Together, these initiatives aim to strengthen collaboration between universities, private companies, and government bodies to address challenges in areas like health tech, urban planning through AI or more transparent public administration with blockchain.

At the policy level, Poland benefits from having both technical and social policy expertise, including a deep understanding of public policy. This intellectual capital positions Poland to lead on both the technical and ethical dimensions of AI development. Furthermore, the Polish government views advancements in information technology as a pathway to overcoming the middle-income trap, ensuring long-term economic growth (gov.pl, 2024).

However, recent developments highlight the challenges Poland faces in achieving its goals. The U.S. decision to restrict AI chip exports to Poland poses a significant hurdle to the country’s efforts to secure cutting-edge technology crucial for AI research and development. Access to advanced AI chips is vital for implementing practical applications. Poland’s exclusion from unrestricted access to these chips could delay progress in key sectors, compelling policymakers to explore alternative solutions to mitigate the impact of this restriction.

Why it matters: Regional growth and beyond

Poland’s digital economy is on a rapid growth trajectory, projected to grow to USD 123 billion by 2030, comprising 9% of the country’s GDP (ITA, 2024). The EUR 1 billion AI plan, if fully realized, could position Poland as a regional hub for innovation, attracting investment and strengthening cross-border collaboration within the CEE region. However, Poland’s ranking of 24th out of 27 EU countries on the Digital Economy and Society Index (DESI) reflects significant gaps in technology adoption and digital skills (DESI, 2024). The restricted access to AI chips adds another layer of complexity to Poland’s efforts to address these challenges. Policymakers are now exploring partnerships within the EU and with other technology providers to ensure continued access to essential hardware and maintain momentum in AI development.

Regionally, Poland’s digital initiatives are influencing its neighbors. Lithuania’s Tech Zity Vilnius, a EUR 100 million project to create Europe’s largest tech campus by 2027, exemplifies the region’s embrace of innovation. Hungary is modernizing its industries with AI-driven manufacturing, and Romania continues to lead with global-scale companies like UiPath. Poland’s effort sets a benchmark in the region, highlighting its potential to act as a central knowledge and innovation hub for neighboring CEE countries.

Challenges and opportunities

The U.S. export restrictions on AI chips present a significant obstacle, potentially slowing research and development across key sectors. Additionally, the global competition for skilled talent remains intense. While Poland is investing in upskilling its workforce through programs like the Digital Competence Development Program – EUR 1.4 billion has been allocated to digital education reforms, infrastructure, and teacher training (EU Digital Skills, 2024) – companies must also offer competitive incentives to attract and retain top talent, both locally and internationally. Securing funding for early-stage startups is another challenge, despite growing overall investment in Poland’s tech sector. Other challenges include navigating EU regulations, such as stricter rules on AI ethics and data privacy and managing global supply chain disruptions.

However, the opportunities are significant. Smart cities, health tech, and green technologies offer immense potential for growth. By leveraging its central location, access to EU funding, and growing talent pool, Poland can attract cross-border investments and foster partnerships with tech leaders from other CEE markets, accelerating the digital ecosystem’s development and establish itself as a key innovation centre in the CEE region.

The road ahead

Poland’s success in digital transformation will depend on its ability to address geopolitical challenges and secure the resources needed for its ambitious goals. The EUR 1 billion AI plan provides a strong foundation for growth, but overcoming obstacles like restricted access to advanced technology will require strategic collaboration and diversification of resources. However, backed by strong governmental and EU support and a forward-thinking strategy, Poland is well-positioned to lead the CEE region toward a sustainable and tech-driven future.