News & Articles
June 12, 2025
Baltic AI Landscape: Estonia, Latvia & Lithuania
We, Venture Faculty, together with Dealroom, have been mapping companies based in the Baltic states that offer AI-powered products and services. The companies included in this list are either headquartered in or have a presence in the region and provide AI solutions or value-added features to their end clients. If you notice any missing entries or outdated information, we’d love your feedback. Each company is also encouraged to suggest edits or updates to their profile directly.
AI has become a fast-growing sector across many fields. There are many new companies being built entirely around AI solutions, while more mature companies are integrating AI into their existing products and services to stay competitive in a rapidly evolving market.
Methodology
This landscape includes only companies that provide AI-powered products or services to clients. Businesses that use AI solely for internal operations are not part of this database. The goal is to map how AI is being built into actual offerings across various industries.
Companies are organized by two main factors: industry category and AI subcategory inspired by NFX The 5-Level AI Spectrum. The industry category reflects the sector in which the company operates - such as Logistics & Mobility, Cybersecurity & IT, or Sales & Marketing. The subcategory shows how deeply AI is integrated into the product or service.
Most companies fall into the AI is the Product (97) and AI-Enabled (60) categories, showing that the majority of Baltic AI companies use AI not just as a supportive feature, but as a central part of their offering. This suggests that these companies are ambitious to disrupt the current market offers with their products.
Furthermore, relatively few companies fall into the AI-Enhanced (9) and AI Product Extension (4) categories, where AI plays a more limited or supportive role. This suggests a regional focus on building AI-driven solutions rather than using AI as an add-on.
Deep Analysis of Data
Looking at countries, Estonia leads with 76 AI companies, followed by Latvia with 67, and Lithuania with 41. Estonia has a large number of companies that fall into the AI is the Product and AI-Enabled groups. Latvia has a wider mix across categories, while Lithuania stands out for having most of its companies (29 out of 41) selling AI as the product itself.
AI integration across the Baltic countries reflects distinct national strengths and strategic priorities set by governments. Lithuania leads in EdTech & Creative AI, and has many companies in the Sales & Marketing category, supported by its national AI strategy focused on digital skills and innovation in education (Digital Skills and Jobs Platform). Companies like Turing College exemplify this trend through AI-based online learning programs.
Latvia excels in Sales & Marketing and Software & AI R&D, driven by a robust digital infrastructure and active public-private collaboration. These conditions support innovations in language tech and software platforms (business.gov.lv).
Estonia leads in Logistics & Mobility AI applications and maintains broad sectoral diversification. Its advantage stems from long-term investment in digital infrastructure and smart transport systems, such as Tallinn’s Digital Transport Model and national ITS solutions (trade.gov, Mobility Innovators).
While government initiatives are not the sole drivers - entrepreneurial ecosystems, market dynamics, and existing sector expertise also play key roles - policy direction and state investment significantly shape national innovation focus, providing the infrastructure, incentives, and talent pipelines that support AI leadership in specific sectors.
Different industries are adopting AI in various ways. The Sales & Marketing sector has the highest number of companies using AI (37), followed by EdTech & Creative AI (27). Sales & Marketing applies AI across a wide range of functions, while industries such as Fintech, Logistics, and Energy tend to build their products directly around AI technologies. It's also worth noting that sectors with fewer AI-focused companies are not necessarily lagging in AI integration - many are adopting AI in their internal processes, which are not the focus of this research.
When we look at when these companies were founded, we see that more and more are appearing in recent years. The number started growing fast for companies founded after 2017, with a big jump in 2023 (39 companies). The trend continues in 2024, with 20 new AI companies already.
Another key insight from the data is the evolving behavior between older and newer companies in the AI space. Many companies founded before the AI boom - sparked by the introduction of ChatGPT in late 2022, have been actively integrating AI into their existing products and services, showing a strong willingness to modernize. However, one clear trend stands out:
the younger the company, the more agile and ambitious it tends to be in adopting AI, expanding product lines, and exploring new applications.
Although the total number of companies founded in 2024 and 2025 appears smaller compared to previous years, this may reflect a data lag rather than an actual slowdown. Many of the most recent startups or AI-driven projects may still be in stealth mode or have not gone public yet. This means we are likely underestimating current activity.
Overall, the data reveals a complementary dynamic: older companies are steadily embracing AI to strengthen existing offerings, while newer startups are driving forward with bold, AI-first approaches. This combination reflects a maturing and increasingly diverse Baltic AI ecosystem - where both established firms and fresh ventures are actively shaping the region’s technological future.
Conclusion
The Baltic AI ecosystem is evolving, marked by a strong emphasis on developing AI-driven and AI-native products. Several key trends have emerged from the data:
Notably, younger companies are proving more agile and ambitious in their use of AI, often adopting AI-first models and pushing the boundaries of application. Meanwhile, more established firms are steadily integrating AI into existing offerings, signaling a broad and mature shift across the ecosystem.
While government policy plays a significant role in shaping national strengths, the region's progress is also driven by entrepreneurial energy, market needs, and deepening technical expertise. The interplay between these forces is creating a resilient and diverse AI landscape.
As the Baltic states continue to invest in talent, infrastructure, and innovation, the region is well-positioned to become a significant player in the global AI economy.
At the same time, it's important to acknowledge why the overall number of AI companies in the Baltic region remains relatively modest compared to larger European ecosystems. One significant reason is the lower level of funding that the Baltic states receive from major EU research and innovation programs like Horizon Europe. The correlation is clear: more funding generally leads to a higher number of AI companies.
For instance, under the Horizon 2020 program - which included opportunities for companies to apply for funding to develop technologies - Estonia received approximately €219 million, Latvia around €90 million, and Lithuania about €78 million in total EU research funding. When viewed per capita, Estonia received about €168.46 per person, Latvia €47.87, and Lithuania only €27.86, compared to the EU average of €178.97 per person.
These figures reveal a clear disparity in funding distribution, and the results of this funding gap are evident today. This aligns with the number of AI companies identified in the region: Estonia leads with 76 AI companies, followed by Latvia with 63, and Lithuania with 41. The stronger funding environment in Estonia appears to correlate with a more developed AI ecosystem, while the significantly lower funding in Latvia and Lithuania may help explain their relatively smaller number of AI ventures.
Estonia’s comparatively higher funding aligns with its leadership in AI adoption and company creation, suggesting that access to EU funds plays a significant role in enabling the AI ecosystem to grow. Conversely, Latvia and Lithuania’s lower funding correlates with fewer AI startups and more limited research infrastructure. This underscores the need for more proactive strategies to attract investment in these countries. Without such efforts, the region risks falling further behind other European countries in AI innovation and competitiveness.
Room for growth
Access to EU funding plays a critical role in advancing technological and economic growth, particularly in regions like the Baltics, where innovative capacity is significant but often hindered by funding disparities.
Estonia's robust AI sector illustrates clearly how adequate funding and infrastructure directly correlate with accelerated innovation and economic progress. Conversely, Latvia and Lithuania demonstrate the challenges faced when EU funding is limited, highlighting restrictions on startup creation, research endeavors, and the scaling of innovative products.
The current insufficient absorption of EU funding not only limits immediate growth but also risks causing long-term economic stagnation, leaving the region less competitive compared to larger European economies.
To improve funding availability and optimize absorption of EU financial support, the following actionable steps should be prioritized:
Implementing these steps will significantly enhance the region’s ability to leverage EU resources effectively, supporting ongoing innovation and maintaining competitive relevance in the global marketplace.
Authors: Manager, Edgars Poga and Analyst, Tomass Vilks at Venture Faculty
