The Nordic region has been a hotbed of innovation for centuries. Despite (or perhaps due to) being sparsely populated and remote, Sweden, Norway, and Denmark – along with Finland and Iceland – have given the world some of the most iconic companies.
From Spotify to Nokia and Electrolux, Nordic brands are known and trusted worldwide. And while still balancing their traditional industries, such as fishing and agriculture, these countries are always looking to the future. Technology is widespread in the region, and artificial intelligence (AI) is being used in several interesting ways.
As AI continues to take the world by storm, more eyes will likely turn to the Scandinavian countries to see what they do with the technology. But what is the current landscape, and how can we expect the future to unfold in Northern Europe (and, by extension, beyond)?
Today, we’ll discuss all of the above in more detail. You’ll learn more about some of the top companies using AI in Scandinavia, and what the region is doing to address ethical concerns related to the technology. On top of that, you will also find out what the top successes – and challenges – are of using AI in the Nordic region. Without further ado, let’s get into the swing of things.
Why AI is Important
The conversation around AI has grown especially louder over the course of late 2022 and early 2023, with tools like ChatGPT making huge waves in many industries. It can be used for creating a Research Guide for writing, for example, a problem statement in papers as well as for solving different tasks and generating ideas. Naturally, several questions have arisen about not only these tools’ functionalities – but also whether their use is ethical and how they can cooperate with humans. And no, don’t worry – that prompt was not written with a generative AI prompt!
AI is a broad term, and you’ll find multiple versions of the technology. As machine learning becomes more advanced over time, these tools might be able to help us perform tasks that were previously menial in a fraction of the time that it otherwise would have taken. On top of that, we might also see crucial advancements in industries such as healthcare – which could both transform and save lives.
In a Nordic context, AI is especially crucial to look at. Denmark, Sweden, Norway, Finland, and Iceland all have mixed economies. The technology sector is especially prominent in Sweden and Finland, and Estonia (especially Tallinn) also has a booming startup scene if we count this small nation just south of Finland within the Nordic family.
How is Artificial Intelligence Being Used in the Nordic Region? Examples of Companies Doing AI in Scandinavia
Now that you know a bit more about the basics of AI in Scandinavia, and you know why it’s especially important, let’s look at some of the top companies in the region using the technology. In truth, AI has been used here for years already – but now, things are really kicking on.
Below, you’ll find some of the top businesses using AI within their ecosystems in the far north.
Spotify
Spotify is one of the most famous Swedish companies, and it’s arguably the most iconic business to ever emerge from the Nordic region. The music streaming platform is still headquartered in Stockholm, and in recent years, it has been a huge innovator when it comes to using data to enhance listeners’ experiences.
The biggest recent example of Spotify using AI to deliver a high-end user experience is the launch of the AI DJ, which the company announced in early 2023. With the use of technology from OpenAI, you can learn more about the artists you listen to – and you’ll also be able to find out more about your favorite music genres.
Besides providing a more informative music experience, the Spotify AI DJ also features an AI voice. At the time of writing in May 2023, the feature is only available in the US and Canada. Soon, we hope that users in the Nordics and other parts of the world will get to try the AI DJ – though no official word from Spotify about that has been revealed yet.
Even before the AI DJ, however, Spotify was using the technology to enhance the experiences it delivers to users. For example, AI has helped the company curate personalized playlists – based on your previous listening experiences. In 2017, Spotify acquired the AI startup Niland to help in this respect.
Parametric Solutions
Parametric Solutions is another Swedish company, and it’s headquartered in Gothenburg – the country’s second-largest city. Using generative AI, Parametric’s tools can help design concepts for different buildings and assist with urban design. The aim of these is to help architects create living spaces that are sustainable and high-quality in equal measure.
Using the technology, designers, and architects – along with municipalities – can consider numerous essential factors. Building height is one example. Users also get multiple possible scenarios, allowing them to make a better-optimized decision for their final designs.
Parametric won Startup of the Year at the 2022 Venture Cup in Sweden.
Cognite
Cognite is headquartered just outside of Oslo, Norway, and specializes in data operations. The company was founded in 2016 and, in addition to the Norwegian capital, also has offices in Tokyo and Houston. The company’s flagship product is Cognite Data Fusion, which lets you use machine learning to make your data easier to understand. Cognite has over 500 employees across the globe.
In addition to its Lysaker office, Cognite is also based in Stavanger. Over in the US, the company has another office in Austin – alongside the previously-mentioned one in Houston.
Cognite’s machine-learning and data operations solutions serve clients in the oil and gas sector, along with other similar industries.
Boost AI
Boost AI is another Norwegian business making moves with technology of this kind, and the company uses conversational AI to help others provide better customer service. Based in Stavanger, Boost AI’s tools allow other businesses to offer round-the-clock support; the tool is used by various big players in Norway, including the banking service DNB.
In addition to using chat-based artificial intelligence, Boost AI’s technology also enables voice-based conversations to take place. The business has 140 employees and over 3,000 certified AI trainers within its ranks.
Besides DNB, other Nordic companies using Boost AI include mobile network operators Telia and Telenor. Alongside that, the likes of Nordea and Deloitte also rely on Boost AI to help with their customer service operations.
1X
Perhaps the best example of a Norwegian company using AI is 1X, which was previously known as Halodi Robotics. Founded in 2014, 1X is headquartered in Oslo and was recently backed significantly by OpenAI – the same company that runs the ChatGPT service.
OpenAI Shocking Move into Robotics: Uncovering the Mystery of NEO 1X
Despite being headquartered in Norway, 1X primarily serves markets within the US. The company develops humanoid robots, which it uses to – as it says – “augment” human labor. In addition to its Norwegian head office, 1X also had physical locations in California. You’ll also find another office in Moss, which is just outside of Oslo.
ZenRobotics
Finland has long been a pioneer in the technology sector, and plenty of Finnish companies have made their mark in other industries as well. When it comes to AI, one business you should keep your eye on is ZenRobotics. Founded in 2007, the company focuses on robotic products to help the waste industry better-sort trash.
ZenRobotics is headquartered in Helsinki and has received millions of Euros in funding over the years. The company largely focuses on Scandinavia and the Nordic region as its core market, along with operating within other EU countries outside of Finland.
The company’s aim is to make sorting waste not only more efficient, but safer than if a human needed to do all of that work manually. ZenRobotics works within multiple kinds of waste facilities, and it uses AI to help determine what should be picked. The main AI solution is known as the ZenBrain.
ICEYE
Another Finnish company on our list is ICEYE, which is headquartered in Espoo – a major tech hub located just outside of Helsinki and almost effectively part of the same city due to urban development. ICEYE develops microsatellites that are designed for use in disaster response situations.
ICEYE’s technology is capable of monitoring all sorts of scenarios that could result in humanitarian crises, with one of the clearest examples being its wildfire monitoring capabilities. The satellites can also consistently monitor certain parts of the planet to help with response to natural disasters, such as flooding and earthquakes.
The company serves clients within the government sector, and it’s also used within the insurance industry. ICEYE has offices in both Helsinki and Espoo, and further afield, it’s also present in New York, Singapore, Warsaw, and numerous other global locations.
2021.ai
2021.ai is a Danish company headquartered in Copenhagen’s Nørrebro district. The company serves multiple industries, including finance and the public sector. 2021.ai was founded in 2016 and has since gained significant traction both in the Nordics and further afield.
Besides the company’s Copenhagen office, 2021.ai also has locations in London, Warsaw, San Diego, and Kyiv. The company’s main service is its GRACE, a governance tool for larger language models. Using this tool, the aim is that clients can improve their compliance with local regulations and tackle other LLM-related risks.
The 2021.ai GRACE tool offers real-time monitoring, along with conformity assessments and numerous other offerings. Major clients that have worked with 2021.ai include the shipping giant MÆRSK, Spar Nord, and the Syddjurs municipality – which is just outside of Aarhus.
Depict.ai
Depict.ai is a Swedish company focusing on the lifestyle and fashion industries. It’s especially popular within its homeland, with major Nordic brands like Björn Borg, Oscar Jacobson, and Eytys using the service. Depict.ai helps its clients provide better search results for shoppers, meaning that they’re more likely to spend their money on items that interest them.
Using artificial intelligence, the Depict.ai platform also allows e-commerce companies to categorize the products that they sell more effectively. As such, users can find clothes and other products that fit their interests – even if they didn’t specifically search for these with the search bar.
Another feature that Depict.ai offers is the capability to provide high-quality recommendations to shoppers. The tool integrates with multiple e-commerce platforms, including Shopify, WooCommerce, and Bigcommerce. You can also use it alongside Salesforce and other tools.
Acorai
The Nordic countries have pretty advanced healthcare systems, much of which is provided by the comprehensive welfare system. Several startups in the region have also helped to improve the services offered in other countries within this sector, and AI poses several exciting opportunities to take healthcare across the world to the next level.
Acorai is a Swedish startup using healthcare to help monitor heart failure patients and help them recover quicker. The technology aims to reduce the amount of time that people spend in hospitals, along with dropping the number of hospital admissions that happen in the first place.
Acorai is headquartered in Stockholm, and it has multiple partners helping the product grow. At the time of writing in May 2023, the tool is not available in the US.
Sievo
Heading back over to Finland, the next company on our list is Sievo. The company uses AI to help other businesses enhance their data analytics in numerous areas, including spend and sustainability. Users of the service get in-depth insights within several categories of each aspect they’re able to look at.
Through the in-depth analysis that clients get, Sievo aims to help its customers improve the procurement areas of their businesses. On top of that, the platform helps users to understand where at-risk suppliers are – along with enabling them to save time on what otherwise would have been manual work.
Sievo is used by several major companies in the Nordics and further afield. Examples include Carlsberg, Unilever, and Levi’s. The business has offices in Romania in the US, as well as its main headquarters in Helsinki.
Raffle.ai
Another example of Scandinavian businesses using artificial intelligence to change the world is Raffle. The company is headquartered in Copenhagen, with its main office close to Amalienborg Palace. Raffle uses AI to power its search engines, with the aim of providing better results. Through these search results, companies can use data to enhance their products and services – leading to happier customers further down the line.
Websites with and without Site Search by Raffle AI
When using Raffle for search insights, clients receive information based on their session traffic – and they can also find spots where content is missing. In addition to the search function, Raffle also has a chat solution that uses conversational AI. Through this tool, companies can provide a personalized customer experience round-the-clock.
Raffle is a popular tool within the Nordic region, and Postnord – the main postal service in Sweden, Norway, Denmark, and Finland – uses it to manage how it does. Further afield, German energy company EON also uses Raffle – as does the lifestyle shop Sinnerup.
The Successes of AI in Northern Europe
As you can see from the examples we’ve listed above, companies are using AI within the Nordics in several interesting ways. And contrary to popular belief, they had been doing so well before the end of 2022.
AI is in a good position to grow within the Nordics for several reasons, but one of those is that businesses in the region can operate in other nations with relative ease. The Nordic countries have largely open borders with each other, and Nordic citizens can live in each other’s nations with little paperwork required. Similarly, all of them are part of the Schengen Area – which allows EU, EEA, and Swiss talent to move without requiring complicated work and residence permits.
Despite the Nordics having less than 2% of the global AI talent pool to choose from, the region still has a decent range of highly-skilled professionals. Moreover, the attractive quality of life means that those moving from abroad might see the region as a good place to both enjoy an exciting career and have time for other fun activities.
The Nordics are a hotbed of energy companies, with Fjordkraft and Vestas Wind Systems being two such examples. Perhaps unsurprisingly, the energy and sustainability sectors are where many companies have witnessed success. Parametric, for example, has an emphasis on sustainable housing – while ZenRobotics allows waste to be distributed appropriately.
This people-focused region has also seen success in using AI to enhance the customer experience. Boost AI and Raffle are two clear examples that we’ve discussed, with the pair of them using conversational AI in some of their core offerings. Dixa, a Copenhagen-based company, also integrates numerous AI solutions.
The Challenges of AI in the Nordics
Despite the innovative nature of the Nordic region, AI still faces significant challenges. One of those challenges is that none of the Nordic languages are spoken on the same level as the likes of English, German, Spanish, and so on. With that in mind, machine learning might be trickier over the long run; while many people in the Nordics speak excellent English, it’s still important for businesses to optimize for those individuals’ mother tongues.
Another challenge is that while movement across the Nordic borders is simple, each country has varying levels of development with AI. Sweden, for example, has done a lot within the space – but things aren’t moving as quickly in Denmark or Norway. Having said that, Norway has put together a comprehensive strategy for using artificial intelligence in multiple sectors – including healthcare.
As mentioned by the Nordic Council in an in-depth report, another challenge facing the Nordics when it comes to AI adoption is performing the implementation phase. The council says that each of the following should be addressed for this problem to reduce itself in the future:
- “The level of understanding of AI within the leadership team.”
- “The lack of clarity surrounding costs and what is actually needed to bring a pilot AI solution into production.”
- “The third and final topic is tied to data, along with which data that is available and necessary to succeed with putting an AI pilot into production.”
Government Regulations in Europe and Scandinavia
Like many other parts of the world, regulation is important to consider when discussing AI in Scandinavia. Privacy is one of the most important factors; the General Data Protection Regulation (GDPR) applies to Denmark, Sweden, and Finland, all of which are in the EU. Norway and Iceland, though not in the EU, also comply with this regulation.
Further EU legislation associated with AI will likely come into force in the future, with the union currently working on the AI Act – which will be the first of its kind in the world.
The Ethical Implications of AI in Scandinavia
AI’s ethical implications are similar in Scandinavia as they are elsewhere, and the region has a particular level of consciousness in this respect. In fact, in the Nordic Council report we linked earlier, the council said:
“Our vision is for the Nordics to become a leading region in digitization, ethical AI, and responsible use of data by 2030. The Nordic countries are all in the global top 10 when it comes to “AI readiness” and private investment in AI.
“Now is the time to propel the work in this area by leveraging our common Nordic values and AI readiness, paving the way for ethical AI and responsible use of data, and thus setting a precedent for the world on how we envision data protection, privacy and human-wellbeing at the core of any AI development.”
Ethical implications that’ll need to be looked at include privacy and data, and considering that the Nordics have strong trade unions, it’s likely that they will also consider the impact on employees and their jobs.
Transparency will also be crucial, and this is something that we see in other walks of life within the Nordic region. One major criticism of AI, as mentioned by UNESCO, is that the technology is not always the most transparent. To ensure its success across industries in the Nordics, companies must work to ensure that they’re able to offer what’s expected on a societal level.
The Impact of AI on the Workforce
McKinsey published an in-depth report on AI in the Nordics, in which it highlighted the potential it has to shape many industries.
In terms of the impact on the workforce, AI in the Nordics might benefit from most companies having a flat hierarchy. As a result, more people are allowed to provide their input on certain topics – which could allow companies to use the technology more effectively.
It’s hard to speculate on job replacements, but it’s important to remember that many people in the Nordic region work within the public sector. The technology could help them perform their roles with more effectiveness, with research and development hopefully becoming easier over time. It could also make healthcare more efficient, which might help ease the burden of an aging population with the comprehensive welfare systems that require significant taxpayer funding.
It’s unlikely that AI will replace everybody’s jobs in the Nordic region. That could potentially be the case for some roles – but in many instances, the technology will hopefully be able to assist employees and businesses in providing more innovative solutions over the long run.
AI Is Shaping Many Regions, and Scandinavia is No Different
AI is a huge talking point, and the Nordic region has been using the technology for several years now. From customer support to healthcare and waste management, there are several interesting use cases for AI – and it has already made a huge mark on the world.
Despite not having the biggest share of the global AI talent pool, the Nordics have a highly-educated population to choose from. Moreover, those moving from elsewhere might find the way of life in Sweden, Norway, Denmark, Finland, and Iceland quite appealing – especially as they look to raise families.
Despite the advancements in AI, it’s clear that challenges need to be addressed. The socially-conscious Scandinavians will need to consider the ethical impact, especially if these countries are to achieve the Nordic Council’s goal of being a leader in ethical AI by 2030. Similarly, regulations like the EU’s incoming AI Act will also require adhering to.
The future of AI is both exciting and uncertain in equal measure, but we might look to the Nordics as an example of which approach to take in the future.
Scandification: Discovering Scandinavia.
