AI Regulation Becomes the Balkans’ Next EU Test
By Suad Seferi ·
Artificial intelligence is quickly becoming a new test of European integration for the Western Balkans. As the European Union moves ahead with the AI Act and a broader AI policy framework, countries in the region are being pushed to think not only about innovation, but also about regulation, responsibility and trust. This is a major shift. For years, digital transformation in the Balkans was mostly discussed through e-government, broadband access, startup development and public-sector modernization. Now, AI is forcing governments to answer deeper questions: Who is responsible when an algorithm makes a harmful recommendation? How should high-risk AI systems be supervised? Can public institutions use AI without weakening citizens’ rights? How can smaller economies regulate technology without blocking innovation? The first structured regional dialogue on artificial intelligence among the Western Balkans Six shows that the region understands the need for coordination. AI policy leads from the six economies met in Podgorica to discuss responsible and sustainable AI adoption, shared priorities and common challenges. This matters because no Balkan country can solve AI governance alone. EU alignment will be one of the strongest drivers of AI regulation in the region. Countries that want closer integration with the EU will need to adapt their legal systems to European standards. That includes risk-based regulation, transparency obligations, human oversight, data protection and safeguards for high-risk AI systems. For businesses, this creates both pressure and opportunity. Companies building AI tools for European clients will increasingly need to understand compliance. Those that prepare early may gain a competitive advantage. Those that ignore regulation may find it harder to sell into EU markets or work with regulated industries such as healthcare, finance, education and public administration. For governments, the challenge is more complex. Public institutions want to use AI to improve services, reduce administrative delays and analyze data more efficiently. But public-sector AI is sensitive because it can affect access to benefits, permits, healthcare, education and other essential services. In these areas, mistakes are not only technical failures; they can become rights violations. This is why AI regulation in the Balkans cannot simply copy European documents without building local capacity. Laws are necessary, but they are not enough. Countries need regulators who understand AI systems, public officials who can manage digital projects responsibly, and courts or oversight bodies that can evaluate algorithmic harm. The region also needs regulatory sandboxes. These controlled testing environments can help startups, public institutions and researchers experiment with AI while staying within clear safety rules. For smaller markets, sandboxes may be especially useful because they allow innovation without immediately imposing heavy compliance burdens on early-stage companies. Another important issue is public trust. Many Balkan citizens already have low confidence in institutions. If AI is introduced into public services without transparency, it could increase suspicion rather than improve efficiency. Citizens need to know when AI is being used, what data it relies on and how decisions can be challenged. The Balkans also face a risk of regulatory fragmentation. If each country develops different AI rules, companies and institutions may struggle to scale across the region. A regional AI policy roadmap could help create more consistency, especially in areas such as public procurement, education, data governance and innovation support. At the same time, regulation must not become a barrier that only large companies can afford. If compliance costs are too high, local startups and small businesses may avoid AI development or depend entirely on foreign platforms. The region needs a balanced approach: strong enough to protect citizens, but flexible enough to support innovation. AI regulation is therefore becoming more than a legal topic. It is becoming part of the region’s economic strategy, EU integration path and democratic development. Countries that manage it well will be better positioned to attract investment, protect citizens and build trustworthy digital services. The next stage for the Balkans will be practical implementation. The region does not only need AI strategies and conferences. It needs working institutions, clear rules, trained regulators and responsible adoption by companies and governments. If the Western Balkans can align with European AI standards while preserving space for local innovation, the region could turn regulation into an advantage. Instead of being late to AI, it could become a region known for practical, trustworthy and EU-compatible AI adoption.