Economy

Driving Innovation and Sustainability

06 Apr 2025 3 min reading

Portugal is emerging as a hub for artificial intelligence (AI), leveraging a national strategy designed to integrate technology, sustainability, and competitiveness. Through targeted efforts and government-backed programs like COMPETE 2020 and COMPETE 2030, the country is fostering transformative projects that position it as a leader in technological and sustainable innovation.
The National AI Agenda serves as the cornerstone of this vision, focusing on three key pillars: Innovation, Talent, and Infrastructure. This ambitious plan aims to establish Portugal as a responsible AI leader by 2030, emphasizing ethical adoption and social well-being while aligning with European Union principles. By encouraging the strategic implementation of AI across various sectors, the agenda highlights Portugal’s role as a global benchmark in technology.
Government funding through initiatives like COMPETE has catalyzed groundbreaking projects, showcasing AI's ability to boost competitiveness and sustainability. A prominent example is the transformation within the ornamental stone sector led by Solancis, a company that blends tradition with cutting-edge technology. Supported by COMPETE 2020, Solancis launched the SmartStone Factory 4.0 project, which employs AI to digitize and optimize raw material management. This technology ensures precise allocation of stones for architectural projects even before primary cutting, minimizing waste and maximizing efficiency. Additionally, the company integrates predictive maintenance powered by AI, enabling more agile and sustainable operations.
In the realm of sustainability and energy transition, the Bio-Waste2Carbon (BW2C) project, co-financed by COMPETE 2030, is a standout initiative addressing forest management challenges. This project converts forest residues into biogenic solid CO2, a valuable raw material critical for decarbonization and green fuel production. With its mobile, energy-autonomous system, BW2C enables on-site CO2 capture, creating economically viable models for forest management while reducing wildfire risks. This groundbreaking innovation not only champions environmental sustainability but also establishes Portugal as a leader in merging technology with ecological stewardship.
AI is also reshaping healthcare, as demonstrated by the iCare4NextG project, which is co-funded by COMPETE 2020. This initiative has developed an integrated technological platform to enhance home-based care, focusing on prevention, personalization, and patient participation. By leveraging collaboration among tech companies and academic institutions, iCare4NextG has introduced innovations such as IoT devices and specialized health chatbots. This represents a significant leap forward in addressing the needs of an aging population and managing chronic illnesses with greater efficiency and humanity.
Portugal’s commitment to AI extends beyond its borders, as it actively participates in European AI excellence networks like the EuroHPC Factories of AI and HumanE-AI-Net, which focus on ethical and human-centered AI. Esteemed institutions such as the Instituto Superior Técnico (IST) and INESC TEC play critical roles in advancing cutting-edge technologies, reinforcing the nation’s reputation as a hub of innovation.
Government support through programs like COMPETE has been instrumental in transforming innovative concepts into reality. These investments not only enhance the competitiveness of Portuguese companies but also create meaningful social and environmental impacts, paving the way for a more sustainable and technologically advanced future.
In conclusion, Portugal’s investment in artificial intelligence is far more than a technological strategy—it is a holistic vision that combines innovation, sustainability, and societal progress. Through co-funded initiatives and a strong national agenda, the country is building a dynamic, inclusive ecosystem that cements its position as a global leader in the transition toward a digital and sustainable economy. This commitment is not just revolutionizing traditional sectors but also setting new global standards for competitiveness and innovation.

Economy