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In the artificial intelligence (AI) market in Croatia, as well as across the EU, we are seeing strong growth, especially in public administration where AI technologies enable significant improvements in service delivery, operational efficiency and policymaking with significant support from the European Union in the form of digitalization of public services.
In 2024, with the growing adoption of generative artificial intelligence (Gen AI), organizations will see tangible financial benefits. According to a recent McKinsey survey, 65% of respondents regularly use Gen AI, almost double the number compared to the previous year. The widespread adoption of Gen AI is particularly improving business functions such as marketing, sales and product development. The introduction of AI into various sectors is expected to bring significant economic gains, optimizing operations and encouraging innovative service delivery.
The above trends are reflected in the local environment, for example in the Adriatic Croatia region where, under the leadership of the University of Rijeka through the EDIH Adria program, numerous AI technologies are being developed and promoted, as well as industrial educational partnerships are being developed.
The results of the digital readiness tests conducted within the project clearly showed serious shortcomings and lagging behind of both public administration and companies in the application of artificial intelligence technologies in everyday business.

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In sectors such as healthcare, education, transport, demand for AI solutions is predicted to grow at an annual rate of 20-30% over the next decade, with a particular focus on EU countries due to the availability of funding through various EU funds and digital transformation initiatives.
Public Administration Sector: According to analyses, the application of AI in the public sector can contribute up to 6% higher GDP value in the economic sectors of the GCC countries, and a similar potential exists in the EU countries as well. AI could have an extremely large impact on public administration, with the potential to significantly increase public revenues and efficiency (McKinsey & Company 2023, McKinsey & Company 2024).

Education: The application of artificial intelligence in education is experiencing significant growth, with a special emphasis on personalized learning methods and the automation of administrative processes (World Economic Forum). AI tools, such as adaptive learning systems, enable teachers and institutions to personalize educational content according to the needs of individual students, thereby improving the effectiveness of learning. AI is also being used to analyze learning data to identify weaknesses and opportunities for improvement, while chatbots and virtual assistants help students with questions and administrative tasks. The demand for AI solutions in education is expected to grow, especially in developing countries. EU, where there are initiatives for the digital transformation of education systems.

Tourism and Hospitality: AI in tourism has significant potential, especially in personalization of services, price optimization and analysis of guest preferences. Implementation of AI solutions can significantly improve operational efficiency and customer experience in hotels and restaurants, while chatbots and virtual assistants can improve communication with guests.