Sweden's Position in AI and Innovation Internationally in 2025

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Sweden's Position in AI and Innovation Internationally in 2025
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Sweden has invested in AI and innovation, but how does its competitiveness stand in these areas internationally?

Sweden Strong in Innovation

Sweden ranks well internationally in terms of innovation, placing second. Sweden's strengths are primarily its research capacity, with the most researchers per capita. Sweden has strong global brands and significant investments in research and development as a percentage of GDP.

There are also excellent innovation clusters in Stockholm and Gothenburg, which rank among the world's top 100 innovation hubs. Sweden also tops the EU's innovation ranking, with leadership in sustainable development and research-driven innovation.

Weak Position in AI

There is a relatively strong AI adoption among medium-sized and small businesses, but the level of investment is low as a percentage of GDP. Sweden currently ranks 25th out of 83 measured countries in the Global AI Index. What stands out is the low investment in AI from the government level, where Sweden ranks 57th.

Swedish AI policy and strategy are considered slow, although several initiatives and reforms are underway, and a defined long-term AI strategy will be presented in 2026. Sweden has chosen to focus on sustainable technology, AI in healthcare, and public digitalization.

What is Sweden's Government Doing?

Political clarity and national investments are among what is needed to move Sweden higher up in the Global AI Index. The government proposes in the budget proposition to allocate larger amounts and invest in AI by:

  • Building an AI workshop for the public sector and an AI factory at Linköping University
  • Strengthening authorities (Swedish Tax Agency, Financial Supervisory Authority, National Library, etc.) with extra funds for AI, data sharing, digitalization, and training of Swedish language models
  • Increasing Sweden's co-funding of the EU program Digital Europe for secure and efficient AI in areas such as healthcare and welfare.

References: Prv, Innovationsbron, Tillväxtverket, Techsverige, Digitalstrategy-ai

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