Despite global advancements in artificial intelligence, Russia faces significant hurdles in its AI development. Western technology sanctions have limited access to advanced computing power, causing the country to lag approximately six months behind global competitors. While efforts are underway to bridge this gap through domestic innovation and collaborations with China and BRICS countries, the focus has largely shifted to military applications.
This redirection towards military AI began after the annexation of Crimea, intensifying after the full-scale invasion of Ukraine. The Russian military is actively integrating AI into robotics projects, C4ISR systems, and unmanned vehicles. However, challenges persist, including personnel shortages, a weak venture capital market, and dependence on imported technologies. Limited funding and a focus on military applications have further constrained the development of AI for civilian purposes.
Despite these obstacles, the Russian AI market is expanding, with analysts estimating its value at RUB 1.9tn ($20.8bn) in 2024. Generative AI is also experiencing rapid growth, with potential to reach RUB 23.4bn ($280mn) by the end of 2025. However, the concentration of revenue among a few top companies and the shift towards off-the-shelf products indicate a market still in its early stages of development.
