Romania and AI Act: A Strategic Advantage for Artificial Intelligence Investors
The EU Artificial Intelligence Act (AI Act) – the first harmonized legal framework for artificial intelligence globally – will enter into full applicability on 2 August 2026. In 2024, global investments in AI grew by 62%, reaching $110 billion. Romania has positioned itself as a regional AI innovation hub, combining three rare assets: excellent technical talent, competitive costs, and mature digital infrastructure.
Romania's Advantages for AI Investors
- Elite Technical Talent, Competitive Costs
Romania produces thousands of graduates in computer science and mathematics annually, many with aptitudes for AI, ML, and data science. Universities of excellence in Bucharest, Cluj, and Iași train specialists. Salaries are competitive compared to Western Europe, making Romania an attractive destination for R&D centers.
- Advanced Digital Infrastructure
Romania has fast internet, mature cloud services, and accessible SaaS solutions. The tech ecosystem includes UiPath, which influences global technology giants. This infrastructure supports the development of AI data centers for large-scale projects.
- National AI Strategy 2026-2030
Romania has a National AI Strategy aligned with the European approach, with priorities: investments in data infrastructure, workforce training, support for AI startups, and AI adoption in public services.
- Direct Access to European Funding
European funds through the Digital Europe Programme and Horizon Europe are accessible for AI projects, creating financing opportunities for innovation.
- National Investments of €6 Billion
Romania has decided on AI investments exceeding €6 billion for digital transformation and cybersecurity. The IT industry has grown by 2.5% annually, generating €9 billion annually for the state budget.
AI Act: A Legal Framework Supporting Innovation
The AI Act is the first comprehensive legal framework for AI globally. It entered into force on 1 August 2024 and will be fully applicable on 2 August 2026. The regulation is based on a logical principle: the higher the risk of an AI system, the stricter the obligations. It applies to any organization that develops, imports, or uses AI systems in the EU.
The AI Act supports innovation and startups, allowing companies to develop and test general-purpose models before launch. Penalties for non-compliance are significant: up to €35 million or 7% of global revenue for serious violations.
Why Invest in Romania for AI?
- Legal Predictability: Compliance with the AI Act provides a secure framework. Romania has aligned rapidly with European regulations.
- Optimized Costs: Companies invest in AI for automation (60%) and productivity (63%). In Romania, these objectives are achieved with competitive costs.
- Direct Access to the EU Market: Romania offers access to a market of 450 million consumers.
- Innovative Business Environment: Romania produces recognized startups and universities of excellence.
At LPG Romania, we have over 20 years of experience in establishing and installing IT companies and advise clients on:
- Company Setup – choosing the right legal form, opening accounts, obtaining VAT codes
- Fiscal Compliance – ensuring your company is in line with Romanian and European legislation
- Hiring Local Talent – access to databases of graduates and specialists in AI, ML, and data science
- Continuous Operational Support – accounting, reporting, fiscal consulting
With 20 years of experience, LPG Romania is your partner for a smooth and rapid transition into Romania.