Artificial intelligence in the Western Balkans: Between costs, legislation and digital (il)literacy

The use of artificial intelligence in the region is on the rise, but its potential is still not being fully utilized, particularly in the business sector, where, according to Kosovo Online’s interlocutors, insufficient digital literacy, high costs and the lack of a systematic approach to implementation remain key obstacles. Data also indicate varying levels of adoption of the technology among individuals and businesses.

Written by: Jelena Novakov

Researcher Dominik Kanbach said that 45 percent of Kosovo’s population used artificial intelligence, significantly above the EU average, which, according to Eurostat data from last year, stood at 32.7 percent.

“In the European Union, around one-third of the population frequently uses artificial intelligence. In Kosovo, according to the latest statistics, that figure is almost 45 percent. So it is significantly above the European Union average. This shows how future-oriented Kosovo is and how receptive its population is to technology. Obviously, it also has a young population that is very future-oriented. That is an advantage,” Kanbach said at the Prime conference.

A Kosovo Online survey conducted in Pristina produced similar findings, with most younger respondents saying they used artificial intelligence for work and school, as well as to search for information.

One Pristina resident told Kosovo Online that she occasionally used artificial intelligence.

“When I’m too lazy to search for something online, I sometimes use ChatGPT because it makes it easier to find information,” she admitted.

Another Pristina resident said he used artificial intelligence for coding, while one teenager confirmed that he most often used it for school assignments.

Lawyer Franklin Sedaj said that his generation used artificial intelligence even though it did not fully understand it.

“Artificial intelligence is a very modern phenomenon. We use it, but my generation finds it somewhat more difficult to understand all of this, so we can improve our knowledge of artificial intelligence every day,” the lawyer said.

There are also those who use modern technologies, including artificial intelligence, in “every situation.”

“Mostly for work. When I can’t do certain things, I use artificial intelligence, like everyone else nowadays,” one Pristina resident said.

Serbia leads the region

According to digital transformation and artificial intelligence expert Aleksandar Mastilovic, the use of artificial intelligence is also widespread in Serbia, although its application in the economy largely remains at the individual level, without a systematic and strategic approach by companies. For this reason, he said, improving the digital literacy of both the general population and employees was essential.

“As expected, artificial intelligence is most readily adopted by younger people, university students and school pupils, who use it to make tasks in formal education easier. Companies have also begun using it, but mostly at the individual level, as a personal assistant for employees, rather than to optimize business and production processes,” Mastilovic explained to Kosovo Online.

Speaking about Serbia’s position compared with other European countries, he assessed that the country had made significant progress in adopting artificial intelligence and that, although it continued to lag behind the European Union average, it held a leading position within the region.

“We are doing much better than we were five, ten or fifteen years ago, and we can say that we are not lagging significantly behind. Nevertheless, we are below the European Union average, although we are certainly ahead of five to seven EU member states, particularly some of those with which we share borders. In a regional comparison with the countries of the former Yugoslavia and our immediate neighbors, we are definitely among the leaders,” he said.

Mastilovic warned that artificial intelligence, like other technologies, could be used to improve quality of life, but could also be employed for manipulation and abuse.

He pointed to the possibility of generating fake videos, statements and voices, and even making telephone calls that imitate the voice of a family member or another close person in order to manipulate someone into making the wrong decision.

Mastilovic also stressed the importance of appropriate regulation, saying that he expected Serbia to adopt an artificial intelligence law aligned with European rules by the end of this year.

“The law will generally protect us and enable our companies to remain compatible with the European market, but responsibility for the proper use of artificial intelligence begins with each of us, through its ethical and responsible use,” Mastilovic concluded.

AI use growing in Albania

The use of artificial intelligence is also increasing in Albania, although it remains below the European average, with around 27.3 percent of individuals and 12.4 percent of businesses using it, according to software and artificial intelligence expert Said Dulevic, founder and director of Impact Education.

“This means that 87.6 percent of businesses do not report using generative artificial intelligence. We can see that businesses in Albania still rely on human staff because the infrastructure is poorly developed. Customer support is still provided by telephone, email or in meetings. We have not yet reached the stage where a robot responds to us, and clients themselves do not always accept that form of communication,” Dulevic told Kosovo Online.

He pointed to the difference between how individuals and companies use artificial intelligence, noting that generating images, searching for information and completing school assignments represented only a small fraction of its potential applications.

According to Dulevic, businesses can integrate artificial intelligence into financial systems, websites and customer support, as well as use it to create and edit video content and schedule social media posts. He added that in his daily work he had noticed growing interest in artificial intelligence training, automation and the application of AI for both business and personal purposes.

Speaking about costs, he said that the use of artificial intelligence by small businesses could cost between $400 and $500 per month, which could be more economical than hiring an employee to perform the same tasks, particularly when training costs were also taken into account.

However, he explained that costs could be significantly higher for large companies receiving a substantial number of messages every day.

“If we are talking about a business that receives 20,000 messages a day, such as wholesale centers, the monthly cost of using artificial intelligence to respond to every customer could reach between 10,000 and 15,000 euros,” Dulevic said.