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Is Hungary at the forefront of artificial intelligence in Europe?

Recently, the Artificial Intelligence Coalition (MIK) informed the relevant committee of the Hungarian Parliament about possible trends in the sector. The MIK’s goal is clear: to put Hungary at the forefront of AI developments and applications in Europe and to become a member of the international AI community. In this process, it will bring together users, market players, academia, professional organisations and public institutions.

The founding chairman of MIK informed the Consumer Protection Subcommittee of the National Assembly’s Economic Committee that Hungary needs a supercomputer where research and educational projects can be carried out, but it would also be very important for SMEs to have the necessary computing capacity, and the creation of data repositories and the right to control data assets would help to make Hungarian economic development more dynamic. He also stressed the need to build knowledge centres in the next period, providing concrete applications for all professions, manufacturing and service companies, small and large industries. These could be made available with relatively little investment.

The President said that the legal regulatory environment for SME sector developers also needs to be improved to empower SMEs. In his presentation, the Deputy Chief Operating Officer of MIK drew attention to European trends, noting that the AI Act was passed in the EP barely a month ago, but the full 466-page set of rules will not come into force until mid-2026. He also stressed that under the AI Act, the kind of social credit system that is being built with AI in Asia will be strictly prohibited in the EU. On the subject of interception and personalised advertising, he said that human uniqueness in the digital space is not so diverse, our online actions are similar, and they can be categorised.

In the field of the use of artificial intelligence, it is also expected that capital-strong companies will have an advantage, Hungarian micro-enterprises and start-ups will certainly not be able to break into this market en masse on their own. MIK would consider it a fair solution if giant multi-companies are generating extra profits were to pay a one percent tax on the extra profit and this amount would be paid into the Hungarian fund. According to MIK, by paying a one percent tax, these large companies would also be able to base their own long-term investments, as it would become possible to finance the training of their workforce, and thus the small, well-functioning Hungarian companies with strong capital would also appear in the supply chain, on whom they can rely.