AI Adoption as a Modern Regional Policy Tool in the Process of Smart and Economic Development of European Regions

The beginning of the twenty-first century is associated with a great technological leap worldwide. This radical economic change is related to the emergence and development of artificial intelligence and effective knowledge management as a major driver of economic growth. The accumulation of information sets (big databases) and data necessary for AI to function is directly related to the spatial aspects of economic development, which is also based on local potential. At the same time, local resources are not being fully exploited in the context of technology diffusion and AI deployment across regions and countries. In this context, this study aims to analyze the role of AI and its impact on the development of individual European regions and countries. The authors consider AI a contemporary regional policy instrument that impacts EU regions in a specific way. The results of the study show that there is a direct link between the deployment of AI and the economic development of European countries. Important factors influencing this process are the extent of internet coverage, the ability to generate knowledge, the extent of AI deployment in the different economic sectors of the countries, the growth of the ICT sector, and others.