Support Program for Service Providers Developing AI-Based Solutions

Notification: We inform all potential bidders that the deadline for submitting bids for the "Support Program for Service Providers Developing AI-Based Solutions" was closed on Friday, April 26, 2024, at 12 PM.

The Center for Digital Transformation (CDT), in collaboration with the Ministry of Economy of the Republic of Serbia, is issuing a public call for companies to apply for the new "Support Program for Service Providers Developing AI-Based Solutions."

Through this support program, CDT offers selected applicants technical and financial assistance in the development of innovative business software solutions based on artificial intelligence, as part of the Program:

Technical and consulting support through the work of an assigned CDT consultant;
Financial subsidy for the costs of developing innovative business software solutions based on artificial intelligence to support and enhance the business operations of MSMEs from the Republic of Serbia, covering 50% of the development costs of the solution, based on the submitted documentation (technical description of the problem and the software solution addressing it, or financial offer with the cost structure for the development of new or enhancement of existing software solutions using artificial intelligence on digitized and structured data), up to a maximum of EUR 130,000;
Support during the promotion phase of the solution and the Program, enhancing the visibility of the Program results and the position of the supported solutions to achieve the Program goals.

CDT will select the two best providers according to predefined criteria, who have submitted complete and organized documentation and meet the technical and formal requirements of this Public Call within the Program.

Based on previous analyses of the IT and AI ecosystems and internal performance analyses of previously implemented programs, CDT has made a strategic decision to establish this Program aimed at strengthening the IT and AI ecosystems, particularly promoting the application of artificial intelligence to support MSMEs in the Republic of Serbia, optimizing resources, increasing efficiency, reducing business costs, and using AI for market predictions - supply and demand, supply chain management, business decision support, and improving business operations and production.

In the strategic planning and business development process, including the development of this innovative Program, CDT has analyzed and considered all relevant strategic documents and goals of the Government of the Republic of Serbia, primarily relying on the goals, priorities, and measures defined in the official strategic documents of the Republic of Serbia:

Industrial Policy Strategy of the Republic of Serbia 2021-2030.
AI Development Strategy in the Republic of Serbia 2020-2025.
Prime Minister's Exposé from October 22, 2022, Priority Goal #4 of the Government of the Republic of Serbia: Continuation of digitalization and development of robotics and artificial intelligence.

The goals of this Program include the following effects through two program objectives:

PROGRAM OBJECTIVE 1: Stimulate the development of the AI ecosystem in the Republic of Serbia;
PROGRAM OBJECTIVE 2: Establish a support program for service providers developing AI-based solutions and information systems for supporting and enhancing MSME operations in the Republic of Serbia.

EXPLANATION:

The Center for Digital Transformation LLC Belgrade (hereinafter briefly: CDT) has been implementing support programs for the digital transformation of micro, small, and medium-sized enterprises (MSMEs) in the Republic of Serbia since 2018, up to and including the current 2024. During this period, over 1000 companies from the MSME sector registered in the Republic of Serbia have participated in CDT programs and successfully implemented solutions.

The basic digital transformation support program for MSMEs in the Republic of Serbia, established in 2018, consists of providing intellectual consulting services to assess the digital readiness of individual MSMEs in the form of expert analysis, creating a short-term digital transformation strategy, and identifying a priority project to be immediately implemented within the program with financial support covering 50% of the implementation value, but no more than EUR 6,000 per MSME program user.

In addition to the regular digital transformation support program for MSMEs in the Republic of Serbia, CDT has launched an additional Support program in 2022 for implementing AI-based digital business solutions for companies in the advanced stages of digital transformation. These companies already have certain digital tools to support business processes, management, or production. Such companies have a satisfactory level of digitization and digitalization, and collected domain and volume of digital data on their business and/or production history, which they continuously collect and which can be subject to advanced business analysis and business intelligence implementation. For the targeted support of this class of companies, CDT has established a support program for applying AI in business for MSMEs with a similar model of providing intellectual consulting services and co-financing the implementation of the priority project with 50% of the total implementation costs of AI elements, up to a maximum of EUR 12,000 per individual MSME program user. During the 2022/2023 program, this targeted advanced program successfully supported 30 MSMEs registered in the Republic of Serbia.

Analyzing the realized advancements in digital readiness and the application of AI-based business modules and solutions, with the aim to help MSMEs in the Republic of Serbia improve their business models, processes, products, and services, and make them more efficient and profitable through advanced business support systems, thereby making them more competitive in markets inside and outside the Republic of Serbia, CDT identified challenges that partially slowed and limited the positive effects of the previous program.

During program implementation, it was observed that the strategic focus on AI user companies alone could not effectively and completely deliver the expected results due to the isolated approach of considering the comprehensive ICT industry ecosystem and, consequently, the part of the IT industry that develops AI algorithms and commercial solutions. As there are very few existing solutions and the ecosystem is relatively poor, it was particularly challenging to find companies - service providers who could be AI implementers in MSME companies, program users. Among those potential service providers who have such capacities, AI-based solutions were mostly in some development phase or initial experimentation, mainly due to market conditions where there was little to no demand for such solutions, thus their development was not a priority. Because of this, the CDT support program for AI implementation, with a maximum of EUR 12,000 co-financing alongside the MSME program user's investment of an equal EUR 12,000, forms a budget of up to EUR 24,000 for implementations. Although an MSME program user can invest over EUR 12,000 in these projects, this did not happen in practice due to a lack of awareness about the benefits and possibilities of AI and the benefits that can be achieved based on established business intelligence support for decision-making and planning. With a typical budget of EUR 24,000, considering the current labor costs of senior IT engineers - developers with skills to work on development projects, advanced data analysis, and AI and machine learning applications (current market gross monthly cost min. EUR 3,000, max. EUR 5,000), it is practically difficult to develop a solution from scratch for an isolated application and need of the user, enable at least a one-year user license, maintenance services and software tool customization to specific user needs, cover field implementation costs, cloud resource costs, and provide adequate and complete training for employees in the user company.

Considering all the above, CDT, based on formal analysis of the current state of the IT sector ecosystem, particularly the AI ecosystem and available AI-based software solutions, and available digitized business data sets from MSME companies, has made a strategic decision to establish a new support program focused on the IT community developing innovative AI-based software solutions to help MSMEs in the Republic of Serbia implement business intelligence through the automation of business operations and provide support in strategic and business decision-making and planning. This program aims to ultimately contribute to increasing the efficiency, productivity, profitability, and competitiveness of MSMEs from the Republic of Serbia both in the domestic market and especially in international markets.

For more information about application deadlines and program implementation dynamics, how to apply, including application guidelines, technical and formal requirements, required documentation, the structure and content of submitted offers, and the criteria for selecting the best providers, please see the Support Program for AI Implementation in Business Solutions, with the accompanying Work Methodology.

Join us in our efforts to build a more digitally advanced and inclusive environment.

For more information about the Program, click HERE.