The war in Ukraine is acting as a grim catalyst for innovation. Under the pressures of hostility, the country has had to put its greatest minds together. AI and other digital technologies have emerged as crucial tools in the defence against Russian aggression. As a measurable result, Ukraine has jumped to an impressive 41st place in the 2025 edition of the Government AI Readiness Index, up from 54th the previous year.
We spoke to Mr. Oleksandr Bornyakov (who at the time of our conversation was the Deputy Minister of Digital Transformation of Ukraine, and is now Acting Minister of Digital Transformation) to understand how his country is using AI and other digital tools to advance its civilian and defence goals.
Ukraine wants to become an ‘agentic state’
Before Russia’s full-scale invasion in 2022, the Government of Ukraine had already prioritised digital transformation and AI readiness. It launched several initiatives under the ‘Diia’ brand, including the Diia app, which enables digital access to government services.
The Diia app was launched in 2020 and has become the main digital interface between the state and citizens. Today, the Diia ecosystem has more than 24 million users, and 77 public services available directly in the mobile app, with 150+ services accessible via the Diia portal. Diia also includes a built-in qualified electronic signature, Diia.Signature, which allows citizens to sign documents digitally without physical presence.
In September 2025, the Government enhanced the Diia online portal with the Diia.AI assistant. This AI assistant is integrated directly with the services that are available through the Diia system. It allows Ukrainian citizens to access government services through a simple, intuitive chat format. For example, currently, citizens can order an income statement via the assistant. The team plans to launch the AI assistant not only on the portal, but also in the Diia app.
Mr. Bornyakov told us that the ultimate goal is to build an ‘agentic state’, which allows citizens to access as many government services as possible through the Diia app and chat interface, while AI agents perform administrative tasks in the background. Mr. Bornyakov describes it as follows: ‘When you say, “Me and my wife, we had a baby”, the AI system will respond, “Congratulations, what’s the name of the baby?” And then it says, “Oh well, your baby is now registered according to government standard procedures, this is their tax ID, and their social ID.” That’s the idea of an agentic state.’
This should make services easy to access for citizens, while the government ensures the cost-effectiveness of the bureaucracy.
Diia.City fostered Ukraine’s AI ecosystem
In addition to digitising its bureaucracy, Ukraine has taken decisive steps to enable a flourishing tech and AI ecosystem.
For example, Mr. Bornyakov played a critical role in implementing Diia.City, an initiative that ensures the right conditions are in place for tech startups to thrive. Startups in tech and AI often struggle with financing. Diia.City functions as a ‘virtual free economic zone’. Startup firms are subject to low tax rates if they are in a strategic industry such as AI or tech for defence, and fulfil some company size and salary norms.
Strikingly, Diia.City was launched in February 2022, just two weeks before Russia invaded. ‘Since 2022, 3,800 IT companies have joined. We have more than 200 AI-focused companies such as DataRobot, Grammarly, and Respeecher. And, we have approximately 200 AI companies in defence in Diia City’, Mr. Bornyakov told us.
Brave1 allows firms to move fast and break things
Besides launching civilian applications of AI such as Diia, Ukraine has adapted its AI strategy for times of war. After the full-scale invasion in 2022, Ukraine built on its efforts in Diia.City, introducing benefits for startups in defence AI applications.
A crucial element that ensures that the development of AI solutions in defence happens effectively is the Brave1 platform. The main goal of this ‘defence-tech cluster’ is to allow private companies to quickly develop tech solutions for defence and get the needed certifications. As part of this initiative, private companies can test their defence solutions on the battlefield and receive grants.
The platform catalysed the emergence of a large defence-tech ecosystem.
In total, more than 300 AI-based innovations are registered with Brave1 and over 70 solutions utilising AI and computer vision are already being deployed by military units on the front lines.
In general, Ukraine has taken a pro-business and free market approach to the development of AI systems for warfare, explained Mr. Bornyakov: ‘We placed our bet on private companies and removed a lot of red tape. So those companies don’t have this five-year cycle to get a defence product approved. You can do it in a matter of months in Ukraine.’
Firms, large and small, are induced to compete and develop the most effective solutions. Systems can be tested on the battlefield, and the government can easily procure the most effective systems at a larger scale. Mr. Bornyakov believes this has given Ukraine a 3–6 month edge over Russia in terms of the development of innovative defence solutions such as drones and AI-enabled systems. Russia uses a centralised, resource-heavy approach, whereas Ukraine relies on the agility of the free market and small and medium-sized enterprises.
AI-enabled drones are instrumental in Ukraine’s efforts
Deep diving on some AI defence applications shows the impact of Diia.City and Brave1.
Early in the full-scale war, prominent AI use cases included the analysis of CCTV footage to identify war criminals and the analysis of satellite imagery for intelligence. Since then, the focus has shifted to the use of AI in drones.
Before the war, Ukraine had 7 drone manufacturers. Now, there are over 500.
AI-enabled drones on the battlefield are swiftly improving. They are now able to carry out last-mile navigation, meaning that they can navigate towards a precise location autonomously. Currently, work is also underway to enhance the ‘swarming ability’ of drones using AI. This will allow drones to work together in a coordinated and self-organising manner to complete missions. To avoid friendly fire, and for ethical reasons, humans make decisions about striking targets when drones carry explosives.
Drones and AI are also used to make de-mining safer. Previously, someone would have to physically enter a territory. With AI-enabled drones, it is possible to survey an area for any signs that mines are present. Computer vision and machine learning systems are able to detect subtle signs that a mine is present such as uneven surfaces or areas with less vegetation. These systems are also able to utilise inputs such as electromagnetic pulses and sound to determine where mines are likely to be.
Ukraine’s experience will form the backbone of its new economy
Ukraine is looking beyond the end of the war. According to Mr. Bornyakov, when the war is over, his country will use the AI and tech capacity that it has built as the basis for a new economy: “Our goal is to build sovereign capabilities, such that Ukraine can provide solid, comprehensive, reliable security solutions for governments, businesses, and allied countries. We will have unique experiences to build on.’
The case of Ukraine shows that even with immense restrictions in place, it is possible to build a flourishing AI ecosystem when the right policy decisions are taken.
