Armenia Switches on AI Mode, Changing the Game for the Entire Economy

The Armenian authorities intend not only to build computing capacities but also to ensure a systemic transformation of the entire economy. This refers to an integration model where AI becomes a cross-cutting element of development, spanning all sectors from education and science to business and public administration. This was stated by the Minister of High-Tech Industry, Mkhitar Hayrapetyan, at the Yerevan Dialogue 2026 forum.

Three Directions of AI Integration

Hayrapetyan emphasized that the government is implementing a phased approach, focusing on three key areas.

First, and in his view the foundational direction, is education and human capital development. The Minister noted that without investment in human capital, technology scaling is impossible. The authorities aim for Armenia to not only use AI but also develop it independently. Consequently, AI tools are being integrated into universities and technical institutions, while researchers and students gain access to high-performance computing resources.

"If we don't start here, nothing else will be able to scale," he stated. One of the tools for implementing this policy is the AI Virtual Institute, which has already reached cooperation agreements with international partners, including AWS and Firebird AI. Specifically, a long-term contract for the provision of computing power has been signed with the latter.

A Bet on Business and Innovation

The second direction is the development of the private sector. According to the Minister, the state has already adopted new legislation and launched support programs for the tech industry. Hayrapetyan stressed that the authorities intend to encourage local companies, especially startups, to move from outsourcing to developing their own products and innovations. Through the AI Virtual Institute, the state rents computing power and provides it to entrepreneurs and tech companies working in the AI field.

Digital State and "Smart" Yerevan

The third direction is the digital transformation of the public sector. This involves implementing AI-based solutions in management systems, developing the "smart city" concept, and refining legislation.

The Minister reported that in recent months, the government has been actively collaborating with the Yerevan Municipality to form a common agenda for the Smart City framework. AI implementation will cover a wide range of sectors, from healthcare to fintech.

From "Data Center Gardens" to Sovereign AI

Hayrapetyan separately addressed the infrastructure component, including the Firebird data center project in Hrazdan. However, he noted that the goal is broader: to turn Armenia into a "garden of AI data centers" or "AI factories."

The Minister emphasized that the country possesses significant energy potential, including renewable energy sources. This opens opportunities for large-scale investment in data center construction. Together with this, Hayrapetyan noted that computing power alone is not enough for a full-fledged "Sovereign AI." Secure data, proprietary models, and the development of language technologies are also required.

"We strive to make this goal a reality one day," the Minister concluded.