Artificial Intelligence in Bosnia and Herzegovina: Contextual Analysis

Abstract

This paper reviews the effects of artificial intelligence on economic growth and innovation using white and grey sources from 2018 to 2024. Special consideration is given to the future of AI in the Republic of Bosnia and Herzegovina, a Western Balkan country. A three-step content analysis was employed. First, content identification was performed using IEEE, Scopus, and Web of Science along with an interdisciplinary framework. Second, the scholarly articles were compared and contrasted against the AI Index, the Global Innovation Index, the Government AI Readiness Index, and investment climate reports for the same time period. Third, the content was coded; themes and trends were identified. The content analysis portrays a country in transition. The paper argues that transitional economies can experience AI driven growth. The results show that while awareness of artificial intelligence is growing and indications of potential are present, peers Serbia and North Macedonia outperform the Republic of Bosnia and Herzegovina in readiness to implement artificial intelligence. The analysis reveals that the country’s potential is hindered by emigration, insufficient capital and institutions, and lack of vision on advanced technologies. Consequently, it is recommended that the country implement reforms that increase investment and encourage entrepreneurship.