Finland Invests €200M to Modernize Public Services with AI

Finland just made one of its largest bets ever on using technology to create a better society, and the timing couldn't be more perfect.

Sitra, Finland's future-oriented innovation fund, announced a historic €200 million special investment in 2025 to tackle two critical challenges. Half will modernize public services using data and AI, while the other half will fund growing Finnish companies that might otherwise relocate.

The public sector program targets €500 million in direct savings by 2030. President Atte Jääskeläinen explains the urgency: aging populations and tight budgets require bold reforms to keep essential services running smoothly.

Finland's growth companies often hit a wall when they need funding to expand. Without enough risk-taking capital at home, many promising startups pack up and move to other countries just when they're taking off. Sitra's €150 million commitment aims to change that pattern and keep innovation thriving on Finnish soil.

Beyond the headline investment, Sitra tripled its funding for local innovation projects across Finland. In 2025, eight million euros went to experiments and studies. That number jumps to €16 million in 2026 and €25 million by 2028, supporting everything from better healthcare delivery to stronger citizen participation.

The Ripple Effect

Nearly 100 leading Finnish experts contributed to the Growth Atlas 2026, a comprehensive roadmap containing over 230 recommendations for building sustainable economic growth. The collaborative approach brought together thinkers from business, research, and government to chart Finland's path forward.

Sitra's influence extends globally too. The European Commission adopted Sitra's proposal to create a hub for democracy-supporting technologies, developing new tools that align with European democratic values. The fund also organized the World Circular Economy Forum in Brazil and helped develop a unique method for calculating environmental footprints.

The popular Megatrends 2026 report gives decision-makers and curious citizens alike a clear picture of global changes affecting Finland's future. New focused foresight reviews tackle one timely theme at a time, from alternative economic futures to how young people's outlook shapes society.

To direct more money toward funding innovators, Sitra streamlined its own operations through organizational changes and cost reductions. The fund set an example by embracing AI in its expert work, practicing what it preaches about technology's potential.

Founded by Finland's Parliament in 1967, Sitra operates independently without using tax money, funding its work through smart investments that create value for Finnish society.