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17.06.2025
Investments in artificial intelligence
The modern Russian economy can certainly be described as a post-industrial one. A large portion of it is taken by the service sector. The growth of added manu- factured products is largely due to the increasing use of advanced technologies. In particular, artificial intelligence plays increasingly bigger role in the domestic economy. The competitiveness of Russian products on world markets, national security, technical equipment of enterprises, and the amount of vacancies for highly qualified specialists hinge on investments in AI. This is all the more evident given the increased interest in AI investments on the part of the state, society, and the private sector.
Investments in artificial intelligence are made both by the state (represented by its public law entities) and by individuals and legal entities. According to Kirill Dmitriev, CEO of the Russian Direct Investment Fund, the fund has invested more than RUB 150 billion in the development of domestic AI technologies. The state invests in artificial intelligence to improve the quality, efficiency, and transpar- ency of its functions. Government authorities are actively introducing it into their activities, which allows them to process a greater volume of information, reducing the human error rate. This helps improve the accuracy of inspections and reduce employee costs. Managerial decision-making and analysis of programme results are beginning to prevail in the structure of civil servant activity. State investments in AI technology quickly pay off through streamlining the workforce and reducing violations that could be challenged in court, leading to damages.
Investors’ interest in artificial intelligence is confirmed by the creation of the Alliance for Artificial Intelligence. This alliance includes major players in the Rus- sian market in various industries: Yandex, Vkontakte, Gazprom, Aircrah, Uralkhim, Rusagro, Sibur, Severstal, T-Bank, Rostelecom, Kaspersky, and MTS. One of the Alliance’s top priorities is assistance in attracting investment. In addition to invest- ments by the alliance members themselves, they also seek to create a favourable investment climate in this area and actively promote the idea of investing in artifi- cial intelligence.
Investments in artificial intelligence are made by venture capital funds, private equity funds, business angels, and private investors. The state invests in artificial intelligence through grants. As part of the Artificial Intelligence federal project, grants are awarded on a competitive basis to the winners of the Start II programmes of the Foundation for Assistance to Innovations. Grants of RUB 4 million and RUB 8 million make it possible to realise the most promising business ideas for the introduction and development of AI, while also stimulating high-tech enterprises. One of the most commonly cited risks related to investing in artificial intelli- gence is possible bubble blowing. Big money is currently being invested in AI proj- ects, which may lead to asset depreciation in the long term. If artificial intelligence technologies are not applicable, investments will not pay off. In my view, this risk is greatly exaggerated. AI is applicable in a whole range of economic sectors including education, culture, medicine, manufacturing, media, and law enforcement. When investing in artificial intelligence, one should follow the same rules and procedures as with other investment targets such as diversifying assets, examining the organi- sation’s accounts, performing fundamental and technical analysis, and monitoring changes in legislation. AI is not implemented everywhere, the state and the private sector are ready to continue investing in it, which makes it possible to assess this
area as a promising one for investments.
Investments in artificial intelligence, on the one hand, help corporations keep their technological equipment at the high level and, on the other hand, are a man- ifestation of their corporate social responsibility. Organisations adhering to ESG principles should invest in projects that contribute to human, technological and environmental development without harming future generations. AI technologies can be recognised as one of the most socially responsible areas for investment. The competent application of AI technologies will help reduce environmental damage from production and enhance the productivity of enterprises without doing dam- age to the environment, society or the state.
The state, as well as the private sector, invests more actively in applied proj- ects related to AI development. Fundamental research is no less important, but in the long term it has a longer payback period. For example, Skolkovo give grants for AI development projects, helping organisations that develop AI decision sup- port applications, carry out automatic inventory and conduct real-time reporting research. These projects allow organisations to quickly introduce technologies into production processes, cut labour costs and minimise the number of technical errors and defects.
Given the high rate of Russia’s economic development, not only large corpo- rations but also small and medium-sized businesses can afford to invest in artificial intelligence. There are a large number of promising startups on the market, which are supported by business angels. Investments in artificial intelligence are devel- oping most rapidly in the technology and telecoms sector, commercial and pro- fessional services, financial sector, and service sector. These are high-tech areas that are rapidly embracing AI technologies. For example, in Moscow hospitals, AI technologies help mammologists make diagnoses. AI is also widely used in tele- medicine and preliminary counselling of patients.
According to a research by Rostec, the global artificial intelligence market will be worth USD 59.75 billion by the end of 2025. So, the massive investments made by the Russian Federation and its private sector in artificial intelligence support global economic trends. Russia’s economy is digitalising, which facilitates trade in digital products and export of artificial intelligence technologies abroad.
Investing in artificial intelligence has a positive impact on the development of human potential, too. This is especially relevant in Russia, which has serious demo- graphic problems. Amid shrinking labour force, artificial intelligence will tempo- rarily replace workers whose shortage is caused by low birth rates. AI can help improve the quality of education and medical care for children who have already been born. The competent integration of AI solutions into the educational pro- cess will improve the quality of self-education and stimulate the creative activity of students. The introduction of artificial intelligence into medical care can reduce mortality rates and enable earlier detection of dangerous diseases.
AI technologies are a broad concept. They include machine and deep learn- ing, autonomous systems, quantum computing, self-learning, expert and knowl- edge systems, and much more. I think the most successful solution for investing in these technologies is the creation of special economic zones. Within this legal regime, organisations receive tax benefits, preferential loans, access to infrastruc- ture, subsidies and grants. Support is provided in a comprehensive and multifac- eted manner. Therefore, organisations have more opportunities to implement both fundamental and applied research in the field of artificial intelligence.
Summing up the results of this study, we would like to emphasise the high role and importance of investments in artificial intelligence. This is one of the most promising areas of technology, which has a great impact on political, economic, social and cultural spheres. Investments in artificial intelligence can help solve the problems associated with the commodity focus of the Russian economy and pre-
serve its social and demographic potential. Joint efforts of the state, society, and private sector to invest in this area can significantly improve the living standards and quality of life for Russians. Artificial intelligence is so effective that it is already giving researchers reason to consider the real possibility of introducing an uncon- ditional basic income in Russia. I believe that investment in artificial intelligence should remain a priority area of development in order to achieve the ‘common good’ for all Russians.
Investments in artificial intelligence are made both by the state (represented by its public law entities) and by individuals and legal entities. According to Kirill Dmitriev, CEO of the Russian Direct Investment Fund, the fund has invested more than RUB 150 billion in the development of domestic AI technologies. The state invests in artificial intelligence to improve the quality, efficiency, and transpar- ency of its functions. Government authorities are actively introducing it into their activities, which allows them to process a greater volume of information, reducing the human error rate. This helps improve the accuracy of inspections and reduce employee costs. Managerial decision-making and analysis of programme results are beginning to prevail in the structure of civil servant activity. State investments in AI technology quickly pay off through streamlining the workforce and reducing violations that could be challenged in court, leading to damages.
Investors’ interest in artificial intelligence is confirmed by the creation of the Alliance for Artificial Intelligence. This alliance includes major players in the Rus- sian market in various industries: Yandex, Vkontakte, Gazprom, Aircrah, Uralkhim, Rusagro, Sibur, Severstal, T-Bank, Rostelecom, Kaspersky, and MTS. One of the Alliance’s top priorities is assistance in attracting investment. In addition to invest- ments by the alliance members themselves, they also seek to create a favourable investment climate in this area and actively promote the idea of investing in artifi- cial intelligence.
Investments in artificial intelligence are made by venture capital funds, private equity funds, business angels, and private investors. The state invests in artificial intelligence through grants. As part of the Artificial Intelligence federal project, grants are awarded on a competitive basis to the winners of the Start II programmes of the Foundation for Assistance to Innovations. Grants of RUB 4 million and RUB 8 million make it possible to realise the most promising business ideas for the introduction and development of AI, while also stimulating high-tech enterprises. One of the most commonly cited risks related to investing in artificial intelli- gence is possible bubble blowing. Big money is currently being invested in AI proj- ects, which may lead to asset depreciation in the long term. If artificial intelligence technologies are not applicable, investments will not pay off. In my view, this risk is greatly exaggerated. AI is applicable in a whole range of economic sectors including education, culture, medicine, manufacturing, media, and law enforcement. When investing in artificial intelligence, one should follow the same rules and procedures as with other investment targets such as diversifying assets, examining the organi- sation’s accounts, performing fundamental and technical analysis, and monitoring changes in legislation. AI is not implemented everywhere, the state and the private sector are ready to continue investing in it, which makes it possible to assess this
area as a promising one for investments.
Investments in artificial intelligence, on the one hand, help corporations keep their technological equipment at the high level and, on the other hand, are a man- ifestation of their corporate social responsibility. Organisations adhering to ESG principles should invest in projects that contribute to human, technological and environmental development without harming future generations. AI technologies can be recognised as one of the most socially responsible areas for investment. The competent application of AI technologies will help reduce environmental damage from production and enhance the productivity of enterprises without doing dam- age to the environment, society or the state.
The state, as well as the private sector, invests more actively in applied proj- ects related to AI development. Fundamental research is no less important, but in the long term it has a longer payback period. For example, Skolkovo give grants for AI development projects, helping organisations that develop AI decision sup- port applications, carry out automatic inventory and conduct real-time reporting research. These projects allow organisations to quickly introduce technologies into production processes, cut labour costs and minimise the number of technical errors and defects.
Given the high rate of Russia’s economic development, not only large corpo- rations but also small and medium-sized businesses can afford to invest in artificial intelligence. There are a large number of promising startups on the market, which are supported by business angels. Investments in artificial intelligence are devel- oping most rapidly in the technology and telecoms sector, commercial and pro- fessional services, financial sector, and service sector. These are high-tech areas that are rapidly embracing AI technologies. For example, in Moscow hospitals, AI technologies help mammologists make diagnoses. AI is also widely used in tele- medicine and preliminary counselling of patients.
According to a research by Rostec, the global artificial intelligence market will be worth USD 59.75 billion by the end of 2025. So, the massive investments made by the Russian Federation and its private sector in artificial intelligence support global economic trends. Russia’s economy is digitalising, which facilitates trade in digital products and export of artificial intelligence technologies abroad.
Investing in artificial intelligence has a positive impact on the development of human potential, too. This is especially relevant in Russia, which has serious demo- graphic problems. Amid shrinking labour force, artificial intelligence will tempo- rarily replace workers whose shortage is caused by low birth rates. AI can help improve the quality of education and medical care for children who have already been born. The competent integration of AI solutions into the educational pro- cess will improve the quality of self-education and stimulate the creative activity of students. The introduction of artificial intelligence into medical care can reduce mortality rates and enable earlier detection of dangerous diseases.
AI technologies are a broad concept. They include machine and deep learn- ing, autonomous systems, quantum computing, self-learning, expert and knowl- edge systems, and much more. I think the most successful solution for investing in these technologies is the creation of special economic zones. Within this legal regime, organisations receive tax benefits, preferential loans, access to infrastruc- ture, subsidies and grants. Support is provided in a comprehensive and multifac- eted manner. Therefore, organisations have more opportunities to implement both fundamental and applied research in the field of artificial intelligence.
Summing up the results of this study, we would like to emphasise the high role and importance of investments in artificial intelligence. This is one of the most promising areas of technology, which has a great impact on political, economic, social and cultural spheres. Investments in artificial intelligence can help solve the problems associated with the commodity focus of the Russian economy and pre-
serve its social and demographic potential. Joint efforts of the state, society, and private sector to invest in this area can significantly improve the living standards and quality of life for Russians. Artificial intelligence is so effective that it is already giving researchers reason to consider the real possibility of introducing an uncon- ditional basic income in Russia. I believe that investment in artificial intelligence should remain a priority area of development in order to achieve the ‘common good’ for all Russians.
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