North Macedonia currently lacks AI-specific regulations, lagging behind neighbouring countries that have implemented guidelines or laws. Although the Macedonian Fund for Innovation and Technology Development (FITD) and the government initiated efforts in 2021 to create a National Strategy for AI (National Strategy), progress has been slow due to challenges such as insufficient data, human resources, and technical capabilities. Despite this, there is a strong commitment, supported by organisations like the World Bank and UNDP, to develop a comprehensive AI strategy aligned with European Union (EU) standards.
AI development, support for startups and ethical guidelines
While formal AI regulation is still pending, FITD has been active in promoting AI development through subsidies for startups with innovative AI solutions, including the creation of "ADA", the first Macedonian AI-based digital public administration assistant. The IT sector in North Macedonia is keen on advancing AI technologies, supported by competitive labour costs, high-quality output and government initiatives.
In addition to the National Strategy, there is growing demand for establishing ethical guidelines for AI development and use. These guidelines, though non-binding, are essential for ensuring transparency, fairness and accountability in AI systems. The implementation of such guidelines is expected to foster responsible AI innovation and build public trust.
Education, IT sector growth and public services modernisation
A significant challenge in AI development is the shortage of skilled professionals, exacerbated by the emigration of young talent. The government, in collaboration with FITD, is encouraged to implement strategies to retain and train talent in AI-related fields. FITD's educational programs, offering free AI education to high school students, are a step towards building a sustainable talent pool.
The IT sector in North Macedonia is a key driver of AI development, with initiatives supported by FITD and the Macedonian ICT Chamber of Commerce (MASIT). However, the lack of a clear AI framework may deter investors despite favourable conditions. Additionally, the modernisation and digitisation of public services, exemplified by the development of "ADA", will require updates to laws such as the General Administrative Procedure Act to ensure legal stability.
Data privacy and intellectual property concerns
Data privacy is a major concern in AI development, given the technology's ability to process vast amounts of data. While the Macedonian Data Protection Act aligns with the EU GDPR, it may not sufficiently address privacy challenges posed by AI. Future amendments are expected to align Macedonian laws with the EU AI Act, ensuring comprehensive privacy protection.
Intellectual property (IP) issues related to AI remain unresolved in North Macedonia. The current legal framework does not recognise AI-generated works as copyrightable, as human input is required. Moreover, the use of datasets for AI learning raises potential IP infringement concerns. Future legal developments will likely draw from international frameworks to address these challenges.
Future Directions
North Macedonia's future in AI hinges on developing the necessary infrastructure for AI education, fostering innovation and adopting a National Strategy along with ethical guidelines. Without these foundational elements, the country risks falling behind in AI advancement, despite its strong IT sector and investment appeal. The drafting of AI-related legal frameworks must balance global trends with the country's specific needs to ensure effective regulation tailored to North Macedonia's context.
It is important to highlight that North Macedonia elected a new government in 2024, which has placed comprehensive digitalisation at the forefront of its agenda. This commitment encompasses both public administrative services and the infrastructure supporting the private sector. The government's proactive approach to digitalisation not only lays the groundwork for AI development but also signals a strong willingness to allocate resources and collaborate with experts to advance AI regulation and the related legal framework in the country.
By Andrea Radonjanin, Partner, and Andrea Lazarevska, Filip Srbinoski, Attorneys at law, Schoenherr
