Inside Armenia’s Push to Compete in the Global AI Economy

Armenia is increasingly positioning itself as a growing player in the global digital economy, with leaders from international technology companies, financial institutions, and local innovators highlighting the country’s progress during the recent Doing Digital Forum in Yerevan. The event brought together key voices to discuss how countries can adapt to rapid technological change, build modern infrastructure, and compete in the era of artificial intelligence and digital finance. The Armenian Report was on the ground covering what many described as a defining “digital day” for Armenia’s future.

A central theme throughout the discussions was the role of innovation culture in determining which countries will benefit most from the AI economy. Matias Undurraga, Head of AI Europe at Amazon Web Services, stressed that progress depends not only on access to technology but on mindset and experimentation.

"I think it's the willingness to innovate. It's about the culture and being able to experiment. So, I think the countries that will get ahead are the ones where we have a culture that supports experimentation."

He explained that smaller countries like Armenia should focus on building local capabilities while also relying on global infrastructure where needed. In particular, cloud computing allows countries to avoid the high cost of building their own systems while still accelerating development and innovation.

"So, I think it's very important to build capability. Being able to stay local, develop your own models, and experiment is going to help you. Of course, we want to take away the burden of having to set up your own data centers, and that's where cloud computing comes in. Cloud computing is about accelerating your time to market. And when you think about infrastructure, you don’t have to go out and rebuild it. This is where you can rely on cloud providers."

Reflecting on his visits to Armenia, Undurraga pointed to a noticeable shift in the country’s approach to technology, saying that the local ecosystem has become more open and mature.

"Well, it's my second time. I'm very happy to be here. I think what has changed is that people are a little more open to experimenting, to actually exploring technology, and to advancing with it. So, I think the market is becoming more mature and open to newer technologies."

From a financial system perspective, Armen Nurbekyan, Deputy Governor of the Central Bank of Armenia, outlined how Armenia is working to balance innovation with regulation. He emphasized that creating trust and equal conditions for businesses is essential for long-term growth.

"Well, I think the right approach to balancing regulation and innovation is really about creating a level playing field and a trusted environment for the private sector to innovate. This is why, when you look at the Central Bank’s main focus together with the government over the last several years, the first thing we did was to create public digital infrastructure, which hinges on three main pillars."

He detailed the three main pillars of Armenia’s digital infrastructure: secure digital identity, strong cybersecurity systems, and trusted data-sharing frameworks. These elements, he explained, are necessary to ensure that digital transformation does not create new risks.

"Second, cybersecurity, which is, of course, very, very important. What we learned from other countries is that if you digitize but do not invest in cybersecurity in parallel, this additional digitization may actually be worse for you."

Nurbekyan also highlighted the importance of focusing on real-world problems when developing financial technologies, especially in areas like cross-border payments and digital assets.

"For example, as the Governor mentioned during his speech, we believe that cross-border payments are an area where businesses and consumers can receive much better services. That is why, for example, with crypto assets and stablecoins, we think it is a priority for the Central Bank to create the necessary rails to support this."

The broader vision for Armenia’s role in the global digital system was presented by Tatevik Simonyan, founder of the Doing Digital Forum.

"Today, we see Armenia not just as a hub, but as a digital bridge—a bridge between regions and financial systems, a bridge between human intelligence and AI agents, and a bridge between diverse technological ecosystems."

She described a global shift where digital systems are replacing traditional connections, arguing that countries that build these new “bridges” will shape the future economy.

"The defining shift of our time is very clear: bridges are no longer only physical; they are increasingly digital. The future belongs to those who build them, and I truly believe that Armenia can become that bridging platform where new economic connections are built, tested, and scaled."

Her remarks framed Armenia not just as a participant in digital transformation but as a potential connector between markets, technologies, and ideas. The forum itself focused on this idea under the theme of “Bridging platforms and economies,” reflecting deeper global changes in how countries interact and compete.

International perspectives also highlighted Armenia’s progress in financial innovation. Briony Krikorian-Slade, Head of Governance and Strategy at the UK Payments Initiative, noted that central banks are increasingly working with private companies to modernize systems while maintaining stability.

"I think what we discussed today is that central banks are taking a cautious but proactive approach—encouraging innovators to engage with and collaborate with the traditional banking sector, while also considering how to maintain the singleness of money and the settlement of funds in Armenia."

She pointed to the growing importance of interoperability and cross-border connectivity, especially through digital assets and blockchain-based systems.

"You can layer different services on top of blockchain. For example, you can perform multiple transactions within a single transaction using the new capabilities offered by stablecoins and other digital assets."

Krikorian-Slade also highlighted the role of Armenia’s global diaspora in building a competitive digital economy, noting that Armenian companies can now operate internationally without leaving the country.

"For example, a company in the UK can work with a fintech team based in Armenia. It does not need to be physically located in the UK."

She added that educational programs such as TUMO Center for Creative Technologies and Foundation for Armenian Science and Technology have played a major role in preparing younger generations for careers in technology and innovation.

"The second is FAST—the Foundation for Armenian Science and Technology—which works directly in schools, teaching AI and advanced technology skills."

Across all discussions, a consistent message emerged: Armenia’s digital future will depend on its ability to combine local talent, global partnerships, and strong institutional frameworks. The conversations at the forum showed that while challenges remain, the country is steadily building the foundation to compete in a fast-changing global economy.

With policymakers, innovators, and international partners aligned around this vision, Armenia is increasingly seen not just as a user of digital technologies, but as a place where new ideas can be tested, developed, and shared with the world.

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