The index tracks developments related to AI across 62 countries. It's based on 143 sub-indicators derived from seven criteria: talent, infrastructure strength, business climate, scientific research, development, government strategy, and trade.
Tunisia dropped from 53rd place in 2020 (the year it registered its presence on the index) to 56th as of July 2023.
Tunisia's relatively high starting position in 2020 was thanks to a leap the country experienced in research and innovation in AI during the Covid-19 pandemic. This was aided by the government's "Challenge" initiative at that time, which pushed for positive transformations.
The numbers were good – the turnover of startups specialising in AI grew from 69mn dinars (about $22mn) in 2018 to 719mn dinars (about $233mn) in 2020.
The number of startups in Tunisia reached 904 in June 2023, compared to only 10 companies in 2018.
However, despite efforts to localise AI, Tunisia can still not effectively harness the immense potential of the so-called knowledge economy and modern technologies.
This has led to an alarming exodus, as hundreds of promising startups leave the country in search of better investment external climates, which offer more incentives and fewer complications, especially regarding bureaucracy and restrictive laws.
Meanwhile, major global companies, institutions, and banks have adopted AI and embraced its rapid advancements.
Inevitable demise?
Renowned economic expert Ezzedine Saidan, who is the head of a prestigious research centre and closely acquainted with the experiences of several entrepreneurs and software/system developers, says, "The survival of a startup in Tunisia under current laws, particularly the foreign exchange control law, simply means its demise."
Are restrictive AI laws and modern technology frameworks hindering innovation in Tunisia?
However, the official line takes an entirely opposite view.
At the end of last year, the Director-General of the Deposit and Consignment Fund, Najia Gharbi, affirmed that Tunisia aims to become a "central hub" for modern and innovative technologies. She believed that achieving this strategic goal is possible, especially with the availability of funding and a favourable economic environment.
She also revealed the merger of all funding mechanisms of startups under "Smart Capital," which combines investment funds and "FlyWheel", a grant-based financing program for startups.
She also mentioned that the funds available to innovative project owners using AI technologies encompass $75mn from the World Bank and the German Development Bank (KfW) and $35mn in credits from the European Union.
Furthermore, the "ANAVA" fund aims to raise €200mn, in addition to the 125mn dinars (approximately $40.5mn) available in the specialised "InnovaTech" fund for small and medium-sized enterprises.
Tunisia versus the world
However, there is a disconnect between the current global discourse on AI, and the discussions happening in Tunisia.