Sweden's AI ranking: The reasons behind the fall in the Global AI Index
Sweden is losing ground in the global AI race and is falling in international rankings – but the opportunities are still within reach. In this blog post, we analyze the reasons for Sweden's decline, the lack of leadership, and what is required to regain a strong position in AI. We also highlight concrete actions, expert advice, and educational programs that can enhance Sweden's AI expertise for the future.
Table of Contents:
- Introduction
- Sweden plummets in AI ranking – but why?
- Leadership, not code, is the bottleneck
- Sweden as an AI museum?
- AI is not an IT project
- Three steps forward: What can we do now?
- Government AI initiatives – time to step up?
- We have the prerequisites – but lack direction
- The future is not neutral
- AI competence starts here: AI courses at AVC
Introduction:
The AI race is in full swing. Nations around the world are accelerating, positioning themselves, investing — but Sweden? Sweden is losing ground. Once regarded as an innovation leader in Europe, we are now falling behind in global AI development. And according to the latest reports from both the Global AI Index and leading experts such as Martin Svensson (AI Sweden) and Göran Lindsjö (AI advisor), the pattern is clear: the problem is not the technology — it's the leadership.
This blog post is not about hype, but about direction. It's about how Sweden risks being marginalized in one of the most important technological shifts of our time — and what we can actually do about it.
Sweden plummets in AI ranking – but why?
In the latest edition of the Global AI Index (2024), Sweden dropped seven places to rank 25th out of 83. Particularly concerning is that we rank 57th in terms of "Government Strategy". That is where the foundation for national AI competence is laid — through governance, funding, and regulations. Even Vietnam is ranked higher than Sweden in this area.
It's worth pausing. How did it come to this?
Sweden does not lack technical competencies. Our universities educate skilled engineers, our companies hire AI experts, and organizations like AI Sweden have gathered over 160 partners from industry, public sector, and academia. But still, we are losing momentum. Why?
Leadership, not code, is the bottleneck
According to both Martin Svensson and Göran Lindsjö, the answer is crystal clear: it's the leadership that isn't keeping pace with technology.
Understanding of AI's role in business development, business strategy, and governance is low among many decision-makers. Svensson describes how companies often send a lone representative to AI training — when the entire management team should be there. Lindsjö testifies that both politicians and corporate leaders often have a distorted view of what AI actually is. Sometimes so severely incorrect that they describe "AI" as a flowchart with yes/no buttons.
This is not just an educational issue, but a symptom of a deeper deficiency: we lack a collective understanding of AI's strategic role in societal development and competitiveness.
Sweden as an AI museum?
When Ericsson's CEO Börje Ekholm earlier this year described the risk of Europe becoming a "museum" — a place where people admire innovation but do not drive it — it struck a chord. And this applies to Sweden as well. We risk becoming a country with high technical competence but low application rate. A country where AI is used for pilot projects rather than productive systems that create business value and societal benefits.
Göran Lindsjö expresses it clearly: "Usage is more important than research right now. We need to start using AI on a broad scale – and that requires expertise."
AI is not an IT project
One of the most common pitfalls that both Svensson and Lindsjö point out is that AI is still seen as an IT project — rather than a transformative technology for the entire business. When AI issues are quickly placed in the lap of the IT department without connecting to the business, the product, or the customer journey — well, then the impact falls flat.
AI must be owned by management. It needs to permeate the business strategy, HR structure, legal aspects, product development, and daily operational control. Not least, it must have access to the data that the business already possesses — and understand the actual benefits that can arise.
Three steps forward: What can we do now?
1. Educate the management – collectively
Both AI Sweden and Lindsjö are clear: Do not send just one person for training. Send the entire management team. The understanding must be mutual, otherwise you will never gain momentum. Here, both the private sector and the public sector need to take greater responsibility. An AI project that is not anchored in top management is a stillborn project.
2. Focus on your real problems – not on "doing AI"
AI should not be run as a technology experiment. Start with your real challenges: Do you have high churn in your customer base? Difficulty in planning staffing? Long processing times in an agency? AI is a toolbox for solving such problems – but it only works if you know what really needs to be improved.
3. Start small – but start now
Start with a pilot project, preferably in an area where you have good data and a clear problem statement. Learn quickly, iterate, scale up. AI development is not linear, it requires learning, courage, and speed.
Government AI initiatives – time to step up?
While many other countries are quickly implementing offensive and proactive AI strategies, Sweden is still in a phase of investigation. The government has recently taken the initiative to review how Swedish law should relate to the new AI regulation within the EU – a necessary, but in this context, cautious first step.
The fact that Sweden ranks low – at place 57 – in the 'Government Strategy' category of the Global AI Index is a clear signal that political leadership needs to raise its level of ambition. More than overarching policy statements are required. To drive AI development forward, we need concrete actions: targeted investments, smart regulation, practical support for small players, and clear incentives that encourage both businesses and the public sector to act.
We have the prerequisites – but lack direction
There is no shortage of resources – Sweden has the potential to become a driving force in AI.
- We have world-leading companies with advanced applications.
- We have public sector initiatives that are actually far ahead.
- We have data, infrastructure, and technical expertise.
But we lack coordinated leadership, national unity, and rapid execution.
If Sweden is to have a chance to compete in the economy of the future — where AI is as fundamental as electricity — we must act now.
The future is not neutral
AI is not just a matter of technology. It's about the jobs of the future, security, welfare, and geopolitical relevance. As Lindsjö put it:
“The question is simply where the money will come from, what is going to pay for welfare in the EU if we continue to fall behind.”
Sweden has a choice: Either we build our AI capabilities through smart collaborations, strategic governance, and bold investments — or we watch as others set the rules, reap the value, and take the lead.
We still have time. But not much.
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Reference list:
Allhorn, J. (2024) Experten avslöjar: Därför slår andra länder Sverige i AI – "Ganska långt efter", Tidningen Näringslivet, 25 november. Tillgänglig på: https://www.tn.se/naringsliv/40223/experten-avslojar-darfor-slar-andra-lander-sverige-i-ai-ganska-langt-efter/ (Accessed: 30 May 2025).
Lindsten, P.O. (2025) Varningen i AI-racet: "Vi ligger väldigt långt efter", Dagens industri, 27 maj. Tillgänglig på: https://www.di.se/digital/varningen-i-ai-racet-vi-ligger-valdigt-langt-efter/ (Accessed: 30 May 2025).
Regeringen. (2025) AI-kommissionens färdplan för Sverige: SOU 2025:12. Tillgänglig på: https://www.regeringen.se/contentassets/7b80c90b74b04902afbb800bea581c9b/ai-kommissionens-fardplan-for-sverige-sou-202512.pdf (Accessed: 30 May 2025).
Tortoise Media. (2024) The Global AI Index. Tillgänglig på: https://www.tortoisemedia.com/data/global-ai (Accessed: 30 May 2025).
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