AGP Executive Report

AI in Government: Azerbaijan’s Ministry of Digital Development and Transport signed an MoU with Dutch company Wonderful to bring AI solutions into government and speed adoption; the country is also set to establish an Artificial Intelligence Observatory. Energy Tech: The Energy Ministry and SOCAR held an Energy and AI Hackathon, bringing technology into the energy sector. Student Innovation: Banu Ibrahimova designed an AI-controlled floating robot that removed up to 90.2% of a tested pollutant from model wastewater using UV light. Skills and Research: Baku Engineering University’s dual-degree programme with South Korea’s Inha University has been extended to 2030, with study areas including AI engineering, data science and information technology. Regional Cooperation: Azerbaijan and Kazakhstan are exploring joint projects in AI, IT, logistics and data-centre infrastructure.

AI in Government: Azerbaijan’s Ministry of Digital Development and Transport signed an agreement with Dutch company Wonderful to expand AI use across government, while plans for a national Artificial Intelligence Observatory point to a broader push to track the technology’s development. Regional Tech Links: Azerbaijan and Kazakhstan are exploring joint projects in logistics, IT, AI and data-centre infrastructure. The talks also highlighted how falling Caspian water levels, storms and vessel shortages are complicating cargo transport. Business Digitalization: An innovation expert said companies need to embed digital tools across their operations—not just add chatbots—to stay competitive, while warning that AI raises questions about data protection and technological sovereignty. Skills and Research: Baku Engineering University’s dual-degree partnership with South Korea’s Inha University, extended through 2030, is adding specializations in AI engineering, data science and IT. Elsewhere, student Banu Ibrahimova designed an AI-controlled floating robot that removed up to 90.2% of a tested pollutant from model wastewater.

Public-Sector AI: Azerbaijan’s Digital Development and Transport Ministry signed an agreement with Wonderful to expand AI use across government. The country is also planning an Artificial Intelligence Observatory and developing AI capabilities in Azerbaijani. Engineering Education: Baku Engineering University and South Korea’s Inha University are expanding their dual-degree programme through 2030, with new specializations in AI engineering, data science and information technology. Research and Innovation: An Azerbaijani student designed an AI-controlled floating robot that removed up to 90.2% of a tested pollutant from model wastewater. The Energy Ministry and SOCAR also organized an energy and AI hackathon. Regional Technology: At the Turkic states summit in Ankara, leaders highlighted cooperation in cybersecurity, space technology and digital trade; Azerbaijan’s central bank also backed a regional working group to explore payment-system integration.

Digital Connectivity: A planned Europe–Asia data link will run through Kazakhstan, Azerbaijan and the Black Sea to Sofia, with the connection expected to reach Bulgaria in 2027. Payments Innovation: Central banks from Azerbaijan and Central Asian countries agreed to form a working group to explore payment-system integration; Azerbaijan also shared its use of AI in financial supervision. AI in Government: Azerbaijan’s Digital Development Ministry signed an agreement with Wonderful to expand AI use across public services. Local Tech Talent: A student-designed, AI-controlled floating robot removed up to 90.2% of a tested pollutant from model wastewater using UV light, while a Baku tournament brought 32 teams together to build AI agents for virtual football.

Student Innovation: Baku student Banu Ibrahimova has designed an AI-controlled floating robot to treat polluted water. Tests on model wastewater found up to 90.2% conversion of thiocyanate after 42 hours of ultraviolet treatment. AI in Government: Azerbaijan’s Digital Development and Transport Ministry and Dutch company Wonderful signed an agreement to explore AI services across government agencies and state-owned firms, with a shared platform planned for the Government Cloud. Energy and AI: The Energy Ministry and SOCAR will host a student hackathon on December 11, using real energy-consumption data to develop AI tools that could reduce waste. Digital Heritage: Azerbaijan’s National Library presented its digital preservation work at an international congress in Minsk, highlighting efforts to expand online resources and public access. Tech Talent: A Baku tournament brought 32 teams together to build AI agents for virtual football, giving students and engineers hands-on experience with coding and cloud tools.

Public-Sector AI: Azerbaijan’s Digital Development and Transport Ministry signed an MoU with Dutch company Wonderful to explore AI tools across government and state-owned companies, with a shared platform planned for the Government Cloud. AI Talent: An Energy and AI Hackathon will invite university teams to use real consumption data to develop tools for cutting energy waste. Separately, 32 teams competed in Baku’s AWS Agentic Football Cup, building AI agents that made decisions on a virtual pitch. Science: ANAS Youth Academy head Elmir Babayev presented on support for young researchers at an international academies meeting in China. Baku Engineering University also held a seminar on the IceCube neutrino observatory and high-energy neutrinos. Energy & Industry: At a Brussels event, SOCAR Green joined discussions on green hydrogen links between Europe, Azerbaijan and Central Asia. AzerGold showcased mining technologies and a virtual-reality tour of its Chovdar processing site at an exhibition in Tashkent.

AI and Gaming: Baku’s Gamesummit and OMNI AI Summit drew more than 4,000 visitors and 30-plus companies, including Google and Microsoft/Xbox, to discuss gaming and AI. Separately, 32 teams built AI agents to compete in Azercell-backed virtual football, testing their coding and tactical skills. Building Local AI: Azerbaijan plans an Artificial Intelligence Observatory, while officials say work is under way to develop AI capabilities in Azerbaijani. At the Baku dialogue forum, ICESCO’s director-general called for safeguards against disinformation and intolerance as AI use grows. Digital Infrastructure: NEQSOL Holding’s Trans-Caspian cable project reached its official launch, advancing the region’s digital connectivity. Azerbaijan’s Cybersecurity Center is also set to train specialists.

AI and Digital Services: Azerbaijan’s digital development minister discussed public-sector AI applications with Wonderful’s CEO, including a possible Baku office and local hiring. Tech Industry: Baku’s Gamesummit and OMNI AI Summit drew more than 4,000 visitors and over 30 companies, including Google, Microsoft/Xbox and BytePlus, to explore gaming and practical AI uses. AI Capacity: Azerbaijan is planning an Artificial Intelligence Observatory and working to strengthen AI capabilities in Azerbaijani, while its cybersecurity center is training specialists. Digital Finance: The Microfinance Centre offered to help put a new Azerbaijani microfinance model into practice, with AI and digital tools among the sector’s growing priorities. Connectivity: The Trans-Caspian cable project reached a milestone, advancing plans for a digital link across the Caspian region.

Cybersecurity: Researchers say Israeli ad-tech firm Discover-Tech was the top bidder for Starlink-related ad space in more than 100 countries, raising fears that online ad auctions could be used to locate or monitor users. The findings do not confirm that anyone was tracked. Industry and Energy: Azerbaijan’s non-oil industry grew 1.5-fold from 2021 to 2025, increasing demand for energy as the country pursues renewables and regional green-energy links; agreements in the sector cover more than 8 GW of capacity. Artificial Intelligence: Azerbaijan and Spain’s IE University have agreed to establish an AI Observatory bringing together government, business and academia to study productivity, competitiveness and economic diversification. Officials also say work is underway to strengthen AI capabilities in Azerbaijani, while the Azerbaijan Cybersecurity Center plans to train specialists.

AI Research: Azerbaijan and Spain’s IE University signed an agreement to establish an AI-focused Observatory, bringing government, business and academia together to study productivity, competitiveness and economic change. Azerbaijani-Language AI: Officials say work is underway to build AI capabilities in Azerbaijani, while the country is also helping develop an international AI roadmap. Digital Skills: Azerbaijan’s Cybersecurity Center plans to train specialists, as more than 4,000 people attended Baku’s Gamesummit and OMNI AI events, where companies showcased gaming and AI applications. Responsible Technology: New rules in the journalists’ ethics code call for clear safeguards around AI use, including verification and editorial accountability. Online Security: Researchers suspect an Israeli ad-tech firm placed aggressive bids for Starlink-related ad space in 105 countries, potentially enabling user tracking; the reports do not establish that users were actually tracked.

Industrial Technology: A German-Azerbaijani business conference in Baku is connecting local firms with German technologies for food processing, packaging and factory automation, with B2B meetings aimed at building partnerships. AI and Research: Azerbaijan and UNESCO discussed cooperation in artificial intelligence, education and science. Presidential aide Hikmet Hajiyev also said the country is building AI infrastructure and pursuing international partnerships, citing its electricity capacity as an advantage. Digital Trade: A World Economic Forum report says Azerbaijan can strengthen technology-enabled trade by aligning rules for digital documents, improving data exchange and widening access to trade finance. Clean Energy: Azerbaijani officials discussed renewable power and battery storage cooperation with Chinese companies, including ways to connect storage systems to the national grid. Student Innovation: Azerbaijan Technical University students presented BookLoop, a platform designed to digitize book exchanges and encourage reading through game-like features.

AI Infrastructure: Azerbaijan says it is building national AI capacity, with President’s aide Hikmet Hajiyev pointing to electricity resources and international partnerships as strategic advantages. Water Technology: The Asian Development Bank is considering up to $140 million for Azerbaijan’s first large-scale desalination plant, designed to produce 300,000 cubic metres of water a day for Baku and the Absheron Peninsula. Digital Services: AZAL Miles has shifted to a spending-based rewards model, adding cash-and-miles payments, partner offers and Bolt ride-hailing vouchers through its app. Clean Energy: The European Investment Bank backs the Caspian–Black Sea–Europe green power corridor but says participating countries must clarify how costs, benefits and risks will be shared before financing decisions. Digital Connectivity: NEQSOL’s Trans-Caspian cable project has reached its official launch, advancing a planned digital link across the Caspian.

AI and Productivity: A study of 14 economies, including Azerbaijan, found that higher government AI-readiness scores coincided with lower output per worker from 2021 to 2024. The researchers caution that the link does not show AI readiness caused productivity to fall, and that stronger preparation does not guarantee immediate workplace gains. Green Energy: The European Investment Bank backs the Caspian–Black Sea–Europe power corridor, but says countries must clarify how costs, benefits and risks will be shared before financing decisions. Water Technology: The Asian Development Bank is considering $70 million for Azerbaijan’s first large-scale seawater desalination plant. The proposed reverse-osmosis facility would produce 300,000 cubic metres of water a day under a 25-year public-private partnership. Digital Infrastructure: The Trans-Caspian cable, part of the Digital Silk Way project, has officially launched, advancing a new data link across the Caspian. AI Governance: Azerbaijan is preparing new rules for safe AI use, while public-sector plans include AI services on the e-government portal and tools to flag risks in public finances.

Digital Infrastructure: Azerbaijan’s Trans-Caspian cable has reached an official launch milestone, advancing the Digital Silk Way and regional connectivity. AI Governance: New rules for safe AI use are planned as the country prepares to add AI services to its e-government portal by year-end; officials have also warned against giving AI direct access to government systems. Digital Public Services: Public finance reforms will combine e-contracts and treasury systems and use AI to spot risks and anomalies. E-procurement saved Azerbaijan $267 million in the first eight months of 2026. Clean-Energy Links: The first line of the Caspian–Black Sea–Europe power corridor is targeted to begin operations in 2032, carrying renewable electricity from Azerbaijan toward Europe.

Digital Infrastructure: Azerbaijan’s Trans-Caspian cable project has reached a milestone with its official launch, strengthening the country’s role in regional data links. AI and E-Government: New plans would bring AI services to the government portal and use AI to spot tax risks; the Tax Service says AI has already cut inspection times by 7–9 weeks. Azerbaijan is also preparing rules for safe AI use. Climate and Energy: A new agricultural law would regulate climate mitigation and adaptation for the first time, while the long-term low-emissions strategy sets a path toward net zero by 2060. The Green Energy Corridor could begin its first power deliveries in 2032. Research Standards: Azerbaijan’s metrology institute and Poland’s Central Office of Measures have agreed to share technical expertise, train staff and work on measurement standards and digital certificates.

Digital Connectivity: Azerbaijan and Kazakhstan have launched the first fibre-optic cable across the Caspian Sea. The 380-kilometre link between Sumgayit and Aktau is designed to carry more than 400 terabits per second, strengthening the Digital Silk Way corridor. Clean Energy: Plans for the Caspian–Black Sea–Europe power corridor set 2032 as the target for its first transmission line, carrying renewable electricity from Azerbaijan through Georgia to Romania and Hungary. Digital Government: Azerbaijan is advancing AI use in public finance and plans to connect private businesses to state information systems, as part of broader efforts to digitise public services. Measurement Science: Azerbaijan’s metrology institute and Poland’s Central Office of Measures signed a roadmap covering joint research, staff training and technical comparisons across fields including electricity, radiation and chemistry.