Russian President Vladimir Putin has signed a decree to update the national strategy for developing Artificial Intelligence. It comes as the country faces its worst labor shortage in decades, with the software development sector seeing the biggest brain drain. Our Dasha Chernyshova has more.

This tractor is equipped with Cognitive Agro Pilot – an AI solution for agriculture that makes almost anyone a highly skilled machine operator. Using this technology, a combine harvester can identify unharvested areas, change its route autonomously, and send new information to other machines.

Developers say it can also provide real-time analysis of harvested crops, instantly evaluating impurities, moisture, and other qualities. AI solutions like this are expected to improve employee productivity and help alleviate potential labour shortages.

ILYA SHKABARA Vice-President, Cognitive Pilot "It is a very popular topic in agricultural society because on one side it gives information, it is very comfortable for people, on another side, we near the solution when a few harvesters work together with one operator. And we will show that in a year or two. It will reduce the cost for owners."

There are 1,700 agro pilots already in use in Russia and the market potential is over one million. Eighty percent of their components are produced in Russia

DASHA CHERNYSHOVA Moscow "AI solutions are becoming more and more important for Russia, which is struggling to tackle a shortage of labor. AI is already used in over a third of the country's priority economic spheres. There are more than 1000 companies and over 90 research centres developing AI in Russia."

According to a recent survey, 20 percent of large Russian companies already use generative artificial intelligence. The economic potential of AI in Russia is estimated to reach up to 38 billion U.S. dollars by 2028. But experts warn that a shortage of certain technology because of sanctions and global scarcity could hinder AI development. The sector has also been hit by the departure of thousands of IT specialists from Russia following the start of Moscow's operation in Ukraine.

MAXIM BOLOTSKIKH Director, Yakov & Partners "In terms of AI and its role for the local market, I would say that it will even help to solve the IT of profession shortage, which we face in Russia and many other countries. By average estimation, the shortage is one million IT specialists and that's quite huge."

AI supports other sectors as well: creators of all kinds, marketing, but also basic materials, oil and gas, metals and mining, commerce. Consultancy group Yakov and Partners says Russia is the seventh country in the world in terms of the level of government support of AI development.

MAXIM BOLOTSKIKH Director, Yakov & Partners "It creates opportunities for our technological companies, for our businesses first to develop their own solutions, and be not dependent on the international solutions, especially within such period of time. It supports us as citizens in getting more and more advanced solutions and making our lives easier."

AI development has become an important issue for Russia, one where the country's leadership sees the potential for a competitive advantage. But to achieve that Moscow needs to deal with two key issues a shortage of people and hardware. Dasha Chernyshova, CGTN, Moscow.