Nordic and Baltic nations establish AI centre in Stockholm to boost regional competitiveness
Five Nordic countries and the Baltic states are joining forces in artificial intelligence development. The New Nordics AI centre, unveiled in Helsinki on Tuesday, has received initial funding of 30 million Danish kroner from the Nordic Council of Ministers.
Text by Martti Asikainen, 31.10.2025 | Photo Adobe Stock Photos
The Nordic and Baltic countries are making a bold move in ethical AI development by establishing a joint regional centre. New Nordics AI brings together the national AI organisations of Sweden, Finland, Denmark, Norway and Iceland in unprecedented collaboration.
The centre was presented in Helsinki last Tuesday. New Nordics AI unites a region of 27 million people with the world’s tenth-largest economy. Its goal is to create sufficient critical mass to compete with AI superpowers whilst maintaining the human-centred approach characteristic of the Nordic countries.
Appointed as interim managing director of New Nordics AI, Mikael Ljungblom, believes that in a challenging geopolitical climate, the Nordic and Baltic countries have a unique opportunity to collaborate more closely, more rapidly and more powerfully on one of the greatest transformations of our time.
A strategic shift for the region
The establishment of the new centre represents a strategic shift for a region known for punching above its weight in technology. The Nordic countries’ strengths in digital infrastructure, high levels of public trust in institutions and world-leading position in sustainability create a natural foundation for responsible AI development.
The Nordic Council of Ministers will invest approximately 30 million Danish kroner, or around €4 million, in the centre over the next three years, with additional funding coming from Google, Microsoft and the Nordic innovation organisation.
The timing of New Nordics AI is deliberate. As global concerns about AI safety, bias and societal impact continue to grow, the Nordic model of balancing innovation with ethical considerations may prove increasingly attractive.
“There is a clear cost associated with falling behind when we consider how quickly AI is changing our societies. We in the Nordic and Baltic countries have both a responsibility and a unique opportunity to be pioneers in responsible AI. ,” Karen Ellemann, secretary-general of the Nordic Council of Ministers, told the media.
Vision 2030: Balancing ethics and innovation
Ellemann links the AI centre to broader regional ambitions. She says this is crucial for achieving the Vision 2030 goal of becoming the world’s most sustainable and integrated region.
“Through cross-border and cross-sectoral collaboration, the Nordic and Baltic countries have a unique opportunity to take the lead in responsible AI, strengthen our competitiveness and promote a sustainable future for all of Europe,” she says.
The vision is undeniably attractive. Who wouldn’t welcome AI systems that enhance rather than erode privacy, algorithms that reduce rather than amplify bias, and technology deployment that creates broadly shared prosperity?
New Nordics AI’s secretariat will be based in Stockholm, but its staff will operate from all participating countries. The centre is also open to partnerships across the region, and recruitment for a permanent managing director is already underway.
Building on proven foundations
New Nordics AI has launched with three flagship projects. An EU AI Act implementation network will help organisations navigate Europe’s pioneering AI regulation through shared tools and best practices. This could position the region as a global expert in compliant AI development.
The large language model coordination project, meanwhile, pools resources that would be nearly impossible for individual Nordic countries to marshal alone. The third project focuses on AI and energy, one of the most pressing challenges in new technology development.
The initiative appears to build on proven foundations. AI Sweden, which anchors the new centre, has spent five years creating a national model that brings together nearly 140 partners from government, industry and universities. This experience in fostering collaboration whilst maintaining agility now scales to the regional level.
“By working together across borders—between governments, organisations and companies—we can build stronger structures and create a unified voice in the AI field,” says Iida Lähdemäki, appointed as interim co-director alongside Ljungblom.
Charting a different course
The Nordic countries have slipped somewhat in recent AI rankings, but this has sparked determination rather than despair.
Whilst others see such declines as a widening gap, Nordic and Baltic leaders see an opportunity to chart an entirely new course—one that demonstrates responsible AI as a catalyst for innovation rather than a constraint.
As the global AI race intensifies and concerns about safety and ethics mount, the Nordic and Baltic commitment to collaborative, responsible AI development is forward-thinking. The region isn’t trying to outspend Silicon Valley or outscale China; instead, it’s carving out its own position as a place where AI is developed and used properly.
New Nordics AI has already begun operations, and its ambitious projects are currently being launched. The question is no longer whether small, collaborative nations can compete in AI against the giants, but whether the rest of the world will follow their lead.
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