Hungary Artificial Intelligence Opportunities

Fueled by factors such as increasing adoption of digital technologies, the convenience of online health services and growing health awareness among consumers, the Artificial Intelligence market in Hungary is growing. Advancements in AI sub-markets such as Robotics, Autonomous & Sensor Technology, Computer Vision, Machine Learning, Natural Language Processing, and Generative AI all contribute to the Hungarian AI market’s growth rate.

Hungary’s Artificial Intelligence market is projected to reach US$350.20m in 2024. It is expected to show an annual growth rate (between 2024-2030) of 28.48%, resulting in a market volume of US$1,575.00m by 2030. The rise of artificial intelligence has led to a growing demand for advanced automation and smart solutions across various industries in Hungary, thus creating opportunities for U.S. solution providers in these areas. This has resulted in a shift towards more efficient and streamlined processes, as well as a greater focus on data-driven decision making.

With businesses using chatbots for customer service and support, there is growing interest in AI-powered chatbots and virtual assistants, as well as the development of customized AI solutions for businesses. This trend is driven by the desire for improved efficiency, cost savings, and enhanced customer experiences. There is also a growing trend of using AI in recruitment processes to streamline candidate selection. AI technology is expected to be used across various industries, bringing about a more personalized approach to business operations.

In Hungary, the Artificial Intelligence market benefits from government support in terms of the adoption and implementation of cutting-edge solutions. The increasing demand for AI solutions in various industries required the adoption of new regulations. The AI Act (Regulation 2024/1689) came into effect on August 1, 2024, establishing uniform rules for the development, deployment, and marketing of AI systems across the European Union (EU). Its primary goal is to ensure a consistent regulatory framework, avoiding fragmentation within the EU market and providing legal clarity for businesses.
The regulation applies to all AI providers and users, including those outside the EU if their AI systems are used within the Union.

The AI Act introduces a risk-based approach, categorizing AI systems into different risk levels, with high-risk and prohibited AI systems facing stricter compliance requirements. Prohibited systems include those that pose unacceptable risks, such as manipulative or deceptive practices, while high-risk systems – like those used in healthcare, recruitment, and critical infrastructure – must meet stringent documentation and oversight obligations.

Starting in 2025, the regulation will be enforced in phases with heavy fines for non-compliance.  Fines can reach up to €35 million or 7% of global revenue, whichever is higher. Some provisions, such as those concerning prohibited AI practices, take effect in February 2025. The AI Act also applies to users of AI systems in their professional activities, requiring them to ensure correct use, monitor compliance, and provide proper training for staff.  Open-source AI systems are generally excluded unless deemed high-risk or prohibited.

U.S. companies have a strong worldwide reputation for being leaders in AI innovation and the development of cutting-edge AI solutions and are well-positioned to compete in the AI market in Hungary.

To learn more about the impact of the AI Act, the growing demand for AI solutions and how your company can leverage the resulting opportunities, please contact Eva Bosze, Commercial Specialist at CS Hungary: eva.bosze@trade.gov.