Artificial intelligence is transforming industries worldwide, providing tremendous opportunities for countries like Serbia to become leaders in innovation. Serbia has a unique chance, with Microsoft’s support, to lead the adoption of AI technologies in sectors such as finance, manufacturing, and public services. Kalin Dimtchev, Microsoft’s Director for the Adriatic region, discusses the role of AI, opportunities for regional growth, and how Serbia can leverage its potential for global positioning in an exclusive interview for the WebMind portal, which we bring to you in full.
How do you see the future of AI technologies in the next five years, and what role do you envision for countries like Serbia in the global AI ecosystem?
AI is transforming industries at a pace we’ve never seen before. By 2030, it’s expected to contribute 11.5% to South Europe’s GDP, with early adopters already gaining a competitive edge—streamlining operations, delivering better customer experiences, and driving $3.70 return on investment for every $1 invested.
For Serbia, the opportunity is clear, but success starts with data. AI is only as powerful as the data behind it. Yet, 60% of data is still on-premises and fragmented, many organizations face challenges unlocking AI’s full potential. Moving to the cloud can bring scattered data together, improve its quality, and ensure its governed responsibly, making it truly AI-ready.
Serbia has a unique chance to lead by embracing AI-driven innovation in sectors like manufacturing, financial services and public services. With generative AI adoption rising rapidly, this is the moment for business leaders to act. The question is no longer if AI will transform your industry but how you’ll drive that transformation forward.
What are the biggest challenges and opportunities for Balkan countries in developing and implementing AI technologies?
Southeast Europe, particularly Serbia, shows great potential in AI adoption, with talented engineers and a growing IT sector. To fully unlock this potential, Serbia must foster openness, invest in market entry, and enhance sales and marketing strategies. Aligning education and skilling with industry needs and addressing talent shortages is essential to building a skilled workforce and making AI accessible and cost-effective.
Serbia’s strong digital infrastructure, focus on security, and market access make it an attractive destination for businesses looking to leverage AI for a competitive edge. The IT sector is already contributing significantly to the economy, with nearly €2 billion in exports (7% of GDP in 2023).
Microsoft is proud to support Serbia’s AI transformation, with early adopters like Hemofarm / STADA, NLB Bank, OTP Banka, and the Office for IT and e-Government already seeing the benefits of AI adoption. With AI powered tools like Microsoft 365 Copilot, now available in Serbian, businesses can accelerate AI adoption, boost productivity, and stay competitive.
Our initiatives, such as the Women in AI Hackathon and Bubble Cup, are nurturing local talent, while our Development Centre in Serbia, with over 800 engineers, is delivering impactful solutions across Europe. Microsoft is committed to helping Serbia become a leading innovation hub in this part of Europe.
What are the leading global trends in artificial intelligence and cloud technologies?
2024 has been pivotal for generative AI, transforming daily life and business by tackling challenges once thought impossible. AI is reshaping industries, from drug discovery to ecological conservation. AI transformation will surely gain momentum as organizations and companies continue to implement AI to reshape their businesses.
In our everyday work, personalized Copilots can help us cut through the daily flood of information, making it simpler and easier to manage, and we will more and more use specialized Agents to execute tasks on our behalf at work. But I would mention that Microsoft also invests a lot in other advancements with the goal of revolutionizing how we work, collaborate, and interact with technology.
AI’s role in cybersecurity is crucial, as it helps detect and prevent cybercrime, which generates $8 trillion annually and would count for world’s 3rd largest economy if it was a country. Tools like Copilot for Security enable real-time threat detection and response, making AI a key player in defending against evolving cyber threats.
How do you evaluate the impact of Microsoft Copilot on productivity and benefits within companies?
Microsoft Copilot 365 is revolutionizing productivity across industries, delivering tangible results for businesses. According to the Work Trend Index, 90% of users report time savings, 85% experience improved focus, and 83% see higher job satisfaction. In fact, some Teams users save an entire workday each month simply by using Copilot to summarize meetings—freeing up valuable time for more strategic tasks.
As AI becomes increasingly essential, there has been a 142x rise in LinkedIn members adding AI skills to their profiles, with younger professionals seeing it as critical for career growth. For businesses, this highlights the need for continuous investment in AI training to remain competitive in a rapidly evolving market.
The fear of AI replacing jobs is gradually being replaced by a new understanding of how AI can empower us to achieve more. As AI continues to transform industries, shifting our mindset towards learning, upskilling, and adapting becomes key to sustaining long-term success.
In addition, Microsoft is making it easier for businesses to leverage Copilot with the introduction of a flexible Pay-As-You-Go (PAYG) pricing model on the Copilot Studio platform, available from December 1. This model aligns costs with actual usage, offering businesses better control and scalability. Furthermore, with Microsoft Copilot 365 now available in Serbian, local businesses can more easily tap into its full potential.
Throughout your journey, you have encountered numerous startup companies. Which startups particularly impressed you and why?
Throughout my journey, I’ve been inspired by startups driving innovation and growth. Microsoft supports them through initiatives like Microsoft for Startups and the Founders Hub, providing access to open-source AI tools that spark creativity.
AI is leveling the playing field, giving startups access to the same tools as Fortune 500 companies. For instance, in Serbia, B2Bee is revolutionizing B2B transactions by using AI to equip SMEs with advanced wholesale tools.
Programs like Microsoft Garage, now being developed in Serbia, are fostering innovation and partnerships, further strengthening the country’s role as a Microsoft Development hub.
Startups today are agile, quickly adopting new technologies to fuel their success. That’s why I’m optimistic about the region’s startup ecosystem—Serbia may even see its first unicorn by 2025.
How do you assess the state of the tech industry in Serbia and the broader Balkan region, especially regarding the application of artificial intelligence?
Serbia has recognized the need to cultivate a thriving startup and innovation ecosystem. The country also needs to continue defining objectives and measures for the development of AI, aiming for economic growth, improvement of public services, and advancement of scientific staff. Additionally, Serbia is investing heavily in digital skills and education, which are critical to mainstreaming digital technology in business and increasing competitiveness.
Which industries benefit the most from AI technology, and where do you see the greatest potential for its further development?
At Microsoft, a recent survey showed how AI is saving employees significant time, especially in areas like cybersecurity, sales, and customer service. By automating tasks and analyzing data, AI allows teams to focus on higher-value work. In marketing and PR, it helps spot trends and analyze media reception, supporting creativity while saving time.
Industries like Financial Services, Retail, Healthcare, and Manufacturing are seeing the biggest impact, with companies deploying AI in under 8 months and realizing value in just 13 months.
The message is clear: AI is already making a difference. With the right approach, businesses can use it to drive growth, boost efficiency, and stay ahead of the competition.
What advice would you give to young professionals and startups in Serbia aiming to compete on the global AI and cloud technology market?
For young professionals and startups in Serbia looking to compete globally in AI and cloud technology, I’d suggest focusing on continuous learning and developing a strong foundation in AI and cloud. It’s important to build solutions that address real-world challenges and prioritize security and ethics in your work. Engage with global communities, seek opportunities for collaboration, and take advantage of resources like Microsoft Azure and programs like Microsoft for Startups Founders Hub which offer mentorship, technical expertise, and resources like Azure credits to accelerate growth and to help scale your projects. Keeping a global perspective and understanding international trends can also help guide your innovation as you grow.
Source: Web-Mind.rs
