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Sergey Tokarev: Issues and Conditions for Developing Ukrainian AI Market
Sat. Dec 7th, 2024

Two years of a full-scale invasion have significantly impacted the country’s technology sector in Ukraine. In order to develop and improve it, it is essential to provide tech education, foster collaboration among various market players, and avoid overly strict regulation within the industry. Sergey Tokarev, a tech entrepreneur and co-founder of Roosh, commented on conditions for developing the Ukrainian AI market.

The entrepreneur noticed that there had been an outflow of personnel because of the war. Many Ukrainian specialists relocated to other countries.

On the other hand, Roosh, together with the AI HOUSE community and with support from the Ministry of Digital Transformation of Ukraine, has studied the Ukrainian AI ecosystem. Sergey Tokarev emphasizes that Ukraine ranks second among Central and Eastern European countries in terms of the number of AI companies. In 2023, AI startup funding increased by 35% compared to 2022. 

“The world is noticing our progress. For instance, Zibra AI, a Roosh X’s deep-tech portfolio company that simplifies the process of creating computer games using AI. Their technology is used by over 116,000 developers worldwide. And in 2023, Zibra AI secured half a million in investment from the Speedrun accelerator launched by a16z,” Tokarev notes.

Sergey Tokarev believes this problem can be solved by focusing on improving Ukrainian tech education and making it high-quality and accessible. However, he admits the industry lacks both teachers and funding.

Another challenge is related to the decline in venture capital investments in AI-related projects. Investors are not in a hurry to contribute to Ukrainian companies due to the risk associated with the war. The businessman underlines that these issues should be urgently addressed. The victory in the war and the country’s future in economic development depend on tech advancement.

According to Sergey Tokarev, it is crucial to organize events and platforms where it is possible to keep academic institutions, businesses, and the state interacting. Such a partnership of three key sectors represents a tremendous opportunity for Ukraine’s technological development.

The investors share another key step which is fostering the growth of the Ukrainian AI sector. It is possible the liberal regulation of the industry. 

“I have repeatedly said that overly strict control of the AI industry will only slow down progress. Today, as more and more countries impose restrictions on AI development, Ukraine can become a platform for testing AI technologies of large companies and strengthen its position in the industry,” the investor emphasizes. 

Sergey Tokarev says the country is already working in this direction. The Ministry of Digital Transformation of Ukraine has developed a roadmap for regulating Artificial Intelligence. According to this roadmap, the current priority is cooperation between the state and AI companies. The latter allows developing and testing technologies. Subsequently, a legislative framework will be designed to regulate the sector.

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