In recent years, Azerbaijan has rapidly strengthened its position on the global technology map, transforming from a traditional resource exporter into an economy focused on knowledge, innovation, and digital development. This transition requires not only investment and infrastructure, but also a new mindset — a combination of creativity, entrepreneurial spirit, and the bold adoption of advanced technologies, particularly artificial intelligence.

Alberto Levy, an international expert and Innovation Evangelist, professor, and global keynote speaker, responds to AZERTAC’s questions.

- Your work at the intersection of creativity, artificial intelligence, and business transformation inspires many. How do you think these trends can influence the development of the innovation ecosystem in Azerbaijan and the South Caucasus region?

-I’ve being coming to Azerbaijan since 2022 and finally in 2024 I moved to Baku. And I’ve seen something powerful happening in Azerbaijan (and across the South Caucasus): there is a hunger for progress, not just growth. And I see that in many instances of society as I teach undergrad students, work side by side with businesspeople, collaborate with government in many issues, advise corporations, mentor startups… Technology is arriving fast as in many parts of the world, but what truly inspires me is the creativity and resilience of the people here — the way innovation emerges from real constraints. That mindset is more valuable than any startup accelerator. In class this past week we were discussing how countries that have many constraints like Azerbaijan and Brazil, the country I was born, can do a lot with scarcity.

It is common understanding that Artificial intelligence will accelerate development, but AI alone doesn’t create progress — people do. Artificial Intelligence, in all types and capabilities, are just tools. The real transformation comes when creativity, technology, and purpose meet. In my work in Baku, I’ve seen entrepreneurs and corporate teams who are not trying to imitate Silicon Valley. They are building their own version of innovation — shaped by local identity, energy expertise, logistics power, and a culture that values relationships and trust. I believe this region has everything it needs to become a global innovation hub. What it needs now is not permission, but confidence. Confidence to build boldly, fail intelligently, and export ideas to the world — not just oil and gas. And that confidence is clearly growing.

- What opportunities do you see for implementing artificial intelligence in the Azerbaijani economy, particularly in sectors such as energy, agriculture, and fintech?

-Artificial intelligence is not just a technological opportunity for Azerbaijan — it’s a strategic one. The question is not if the country should use AI, but where it can lead with it. And the answer lies in the sectors where Azerbaijan already has strength in the first moment, and the creation of new opportunities in a second stance.

Azerbaijan is strong in energy, and in that field, AI can help the country move from being a resource exporter to becoming a technology exporter (in the energy sector)— predictive maintenance, intelligent grids, and digital twins can unlock massive efficiency and sustainability gains. In agriculture, for instance, the opportunity is huge: AI-powered irrigation, crop monitoring, and supply-chain optimization can turn traditional farming into smart agribusiness. And in fintech, AI can finally bridge the gap between financial institutions and underserved people — bringing solutions in smarter credit scoring, fraud prevention, and financial inclusion for entrepreneurs and SMEs. The applications are endless.

I saw this potential firsthand when I worked with a local team here building an AI solution to detect equipment failures before they happen. It wasn’t a theoretical case — it saved real money for a real company, and it was built by Azerbaijani talent. That’s the future I believe in for this country: innovation that is created here, solves local problems, and scales globally. AI will not transform Azerbaijan through conferences and discussion and theory alone — it will transform it through entrepreneurship, local pilots, real impact, and courage to build. We need to promote the use of emerging technologies not only in corporations but empower the youth to have their own ideas on how to make a better world, using AI, for example, as a tool for that transformation.

- How can countries with emerging innovation ecosystems, such as Azerbaijan, leverage creativity to accelerate digital transformation and develop tech entrepreneurship?

-Creativity is the starting point of all innovation, as I tell my students and in some of my conferences. Countries like Azerbaijan don’t need to copy Silicon Valley (and should not do it) — they can build their own path by turning local creativity into technology and business solutions. Digital transformation accelerates when people are encouraged to think differently, test ideas quickly, and solve real problems in new ways. If we empower young talent to create — not just consume — technology, we will see a natural rise in tech entrepreneurship. Creativity drives innovation, and innovation drives economic transformation.

- What are the main challenges facing young entrepreneurs and startups in Azerbaijan when integrating advanced technologies such as AI, and how do you recommend overcoming them?

-In my opinion, young entrepreneurs in Azerbaijan face four main challenges when integrating advanced technologies like AI: access, mindset, mentorship, and funding to scale. Access, because many startups still struggle with quality datasets, cloud resources, and affordable AI tools, without even going through the challenges of having its own LLM (Large Language Model). Mindset, because too many teams wait for perfect conditions instead of building and iterating fast – a big mistake, as we know we should not wait for perfection, but build value as soon as possible and correct the journey on the way. Mentorship, because there are still few local role models who have taken AI products from prototype to market, although we see great initiatives like Sabah Hub working on it, inspiring other projects. And funding, because even when startups validate a real solution, they often hit a wall when it’s time to grow — early capital starts to be more visible, but scaling capital is harder to secure.

I saw this recently with a young team in Baku working on an AI tool for logistics optimization. They had a real solution and early traction, but no access to mentorship or capital to scale. What changed everything for them wasn’t luck — it was collaboration. Once they built a partnership with a local corporate and opened doors to regional investors, things moved fast. And we want to see more of those examples where everyone wins.

The way forward is practical: start with real problems, not buzzwords. Use existing AI tools instead of reinventing the wheel. Launch small pilots in weeks, not months. And build early relationships with mentors and companies that can help you scale when the time comes. Innovation doesn’t grow in isolation — it grows in ecosystems of trust, knowledge, and shared ambition.

- What international examples or case studies of the successful implementation of AI and creative technologies in developing countries could be useful for Azerbaijan?

-There are many examples in the world, but I like to get references of countries that migh have similar challenges as Azerbaijan that use creativity and AI to solve real local problems that can be exported. In India, small farmers often lacked access to agronomists, so local startups built simple AI tools that diagnose crop diseases from a mobile photo and guide farmers on irrigation and fertilizers. It wasn’t about fancy tech—it was about practical impact. The same approach could work in Azerbaijan’s agriculture and viticulture sectors to improve yields and protect water resources. As good news, in the last 2 weeks I saw two Azerbaijani startup ideas going on that direction. Another example I saw in Mexico 3 weeks ago while in a conference tour in the country, a fintech company using AI to offer microloans by analyzing alternative data like mobile usage and transaction behavior. That model unlocked entrepreneurship for millions, and a similar approach could boost Azerbaijani SMEs that struggle with traditional credit scoring.

The lesson from these countries is clear: you don’t need Silicon Valley budgets to innovate—you need focus. If Azerbaijan follows the entrepreneurial mindset of moving fast with pilots, it can build AI solutions here that not only transform the local economy but also compete globally.

- What steps do you think could help Azerbaijan become a hub for international startups and tech investment, particularly in AI and creative industries?

-I’m watching very closely the region situation, traveling to different countries to see with my own eyes how innovation is being approached and accelerated by the use of emerging technologies, especially Artificial Intelligence. Azerbaijan has the potential to become a regional hub for startups and tech investment, but it won’t happen by accident—it requires strategy. First, the country needs to make it easy for global founders and investors to do business here: faster company setup, startup visas, modern IP rules, and simple digital tax frameworks. Sabah City soon will bring a better context for that transformation, but it will be a work in progress.

Second, we need to unlock local talent by building AI education and reskilling programs, connecting universities with industry, and bringing world-class mentors to work hands-on with local teams—not just for conferences, but for real product-building. That reskilling needs to happen everywhere, blue collars, white collars, educators, government. A lot to be done.

Third, Azerbaijan must create a startup funding ladder—from pre-seed to scale—by combining local investment with international venture capital and co-investment incentives.

And finally, the country should brand itself around signature domains where it already has strengths: AI for energy, logistics, agriculture, and creative industries.

I’ve seen the ambition here firsthand, and I genuinely believe Azerbaijan can lead—not by copying others, but by building a model that fits its identity and strengths. I truly believe that we have already all pieces of the puzzle here in the country; we just need a better orchestration to make the transformation faster to start perceiving the impact in society.