The state of Finland’s AI ecosystem in 2025 is a study in contrasts: research and infrastructure remain strong, but international competitiveness has fallen. The “State of AI in Finland 2025” report, published by Business Finland and AI Finland, sets out Finland’s strengths and the areas that need work.
Finland’s competitiveness has weakened in international comparisons
According to the report, Finland dropped five places in the 2024 Global AI Index, now ranking 15th. Finland’s strengths are its infrastructure — such as the LUMI supercomputer and the ELLIS Institute — and high-quality research, but its ranking is dragged down by, among other things, an unclear national AI strategy and limited private investment in AI. France and the UK, for example, have pulled ahead with large-scale investment in their AI ecosystems.
In Stanford’s Global Vibrancy Ranking, Finland came 20th overall, but fifth when adjusted for population. That speaks to the strength of Finland’s AI ecosystem, while also signalling that maintaining competitiveness requires further investment.
Startups are being founded, but growth needs momentum
The report highlights the development of Finland’s AI startup scene: new companies are being founded at a steady rate, but the majority are still early-stage. Finnish AI startups have succeeded in attracting early-stage funding, but large funding rounds have remained rare. Among the year’s notable events was the sale of Finland’s Silo AI to AMD, which demonstrates the global appeal of Finnish AI expertise. The lack of growth funding for other startups, on the other hand, may prevent Finland from producing the next success story.
Companies focus on optimisation, but scalability is missing
Established Finnish companies use AI mainly to make operations more efficient and to optimise, but few have managed to build broadly scalable AI solutions. Large companies’ AI investments concentrate on process automation and analytics, while companies aiming for growth in global markets invest in AI as a strategic core area.
Strong AI research, but commercialisation is a challenge
Finland’s AI research remains world-class, and Finnish researchers are internationally recognised. The report warns, however, that commercialisation of research results is lagging. Cooperation between academia and business should be strengthened so that research can be turned more effectively into practical applications and business.
How can Finland close the gap?
The report calls for more ambitious AI investment if Finland is to keep pace in global competition. What is needed:
Larger and better-targeted investment in AI, particularly to deepen cooperation between companies and research.
A better capital market for AI startups, so they can grow and compete internationally.
Better coordination of public and private investment, so that AI’s commercial potential can be fully realised.
Centralised innovation ecosystems where research, infrastructure, and business can meet — along the lines of the Station F model in Paris, for example.
In summary
Finland still holds a strong position in AI research and infrastructure, but global competition is intensifying. Without more ambitious investment in AI, Finland risks falling behind other leading countries in AI development. The report’s message is clear: now is the time to act, so that the Finnish AI ecosystem can hold and strengthen its position in global competition.
Links and sources
https://aifinland.fi/finnish-ai-landscape/
Download the report in Finnish
Download the report in English
https://fi.wikipedia.org/wiki/Station_F
https://fi.wikipedia.org/wiki/Lumi_(supertietokone)
https://www.ellisinstitute.fi/
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