AI Transformation in Latvia

Latvia's AI market is developing steadily as part of the Baltic digital economy, with strong foundations in IT services and software development. The government's Digital Transformation Guidelines and participation in EU AI initiatives drive adoption primarily in public administration, fintech, and logistics sectors. Riga concentrates most enterprise AI activity, with growth companies and EU-funded research institutions leading experimentation. The market remains price-sensitive with preference for open-source solutions and EU-based vendors.