Turkey's AI Strategy and Regulations

Artificial intelligence technologies are fundamentally transforming economies, societies, and governance models worldwide. In this transformation process, countries are developing their own national AI strategies to secure their place in the global race. Turkey is also taking significant steps to stay competitive in this arena. The National Artificial Intelligence Strategy, officially announced in 2021, outlines the country's vision and roadmap in this field.

In this comprehensive guide, we will examine Turkey's AI strategy, existing regulations, institutional initiatives, incentive mechanisms, and global positioning in depth. This analysis, which contains critical information for both policymakers and industry professionals, presents a holistic picture of Turkey's AI ecosystem.

1. Turkey's National AI Strategy

Turkey's National Artificial Intelligence Strategy (2021-2025) was prepared under the coordination of the Presidential Digital Transformation Office and officially published in August 2021. This strategy document analyzes Turkey's current state in the field of artificial intelligence and sets concrete objectives and action plans for the next five years.

Core Vision of the Strategy

The core vision of the strategy is to make Turkey a regional power in artificial intelligence and to create a globally competitive ecosystem. Within this vision, six strategic priorities have been identified:

• Training AI specialists and strengthening human resources
• Enhancing research and innovation capacity
• Socio-economic adaptation and managing workforce transformation
• Developing international cooperation and partnerships
• Achieving structural and infrastructural transformation
• Establishing ethical and legal frameworks

Strategic Targets and Key Indicators

Target Area	2025 Target	Current Status
AI Expert Count	50,000+	~15,000
AI Startup Count	1,000+	~400
R&D Spending (% of GDP)	1.8%	1.1%
International Publication Ranking	Top 15	16-20 range

2. CBDDO's AI Initiatives

The Presidential Digital Transformation Office (CBDDO) is the highest-level institution overseeing Turkey's digital transformation process. Playing a key role in implementing the AI strategy, CBDDO carries out pioneering projects across various domains.

AI Applications in the Public Sector

CBDDO conducts comprehensive work on improving public services through artificial intelligence. Enriching the e-Government platform with AI-powered services, personalizing citizen experiences, and reducing bureaucracy are among the core objectives. Within smart city projects, AI solutions are being developed in areas such as traffic management, energy optimization, and environmental monitoring.

Key projects coordinated by CBDDO include the National Data Dictionary, Open Data Platform, Public Cloud Computing Infrastructure, and Digital Competency Framework. These initiatives aim to build the necessary infrastructure for the widespread adoption of AI applications in the public sector.

Data Governance and Standards

Effective use of AI requires high-quality and accessible data. CBDDO is preparing national data standards and guidelines to strengthen the data governance capabilities of public institutions. Through open data policies, the way is being paved for public data to be used by researchers and entrepreneurs in AI development.

3. KVKK and AI Regulations

The Personal Data Protection Law (KVKK) is one of the fundamental pieces of legislation defining the legal framework for AI applications in Turkey. Enacted in 2016, KVKK establishes rules for the processing of personal data, in parallel with the EU's GDPR regulation.

Impact of KVKK on AI Applications

AI systems are typically trained with large amounts of data, a significant portion of which constitutes personal data. KVKK ties the processing of personal data to specific legal bases. In this context, AI developers must adhere to principles of data minimization, purpose-limited processing, and data security.

Regarding automated decision-making mechanisms, Article 11 of KVKK grants individuals the right to obtain information about and object to decisions based entirely on automated processing. This regulation is extremely important for the transparency and accountability of AI systems.

AI-Specific Regulations

Turkey is in the process of creating a comprehensive regulatory framework specific to artificial intelligence. The global impact of the EU AI Act is also shaping Turkey's regulatory approach. Key topics on the agenda include establishing a risk-based classification system, certification requirements for high-risk AI applications, and integrating ethical principles into the legal framework.

Currently, there is no separate law directly regulating AI applications in Turkey. However, KVKK, the Law on Regulation of Electronic Commerce, the Consumer Protection Law, and sector-specific regulations indirectly cover AI applications. It is known that the government is working on a specific regulatory draft for artificial intelligence.

4. Incentive Programs and Funding

Turkey implements various incentive mechanisms to support investments and entrepreneurship in the field of artificial intelligence. These incentives span a wide spectrum from R&D subsidies to tax advantages, grant programs to venture capital funds.

Ministry of Industry and Technology Support

The Ministry of Industry and Technology offers various support programs for AI projects. AI companies operating in Technology Development Zones (technoparks) benefit from advantages such as corporate tax exemption, VAT exemption, and income tax withholding support. KOSGEB's technology-focused support programs also provide significant resources for AI ventures.

Venture Capital Ecosystem

Turkey's venture capital ecosystem has shown significant growth in recent years. The Development Investment Bank's Turkish AI Ventures Fund, Turkey Wealth Fund's technology investments, and private sector funds provide capital for AI startups. Angel investor networks and incubation centers also support the ecosystem.

Incentive Program	Support Amount	Target Group
TÜBİTAK 1501	Up to 75% grant	Industrial enterprises
TÜBİTAK 1512	Up to 450,000 TL	Entrepreneurs
KOSGEB TechnoInvest	Up to 6 million TL	SMEs
Technopark Tax Exemptions	Variable	Technopark firms

5. TÜBİTAK Projects and R&D

TÜBİTAK (The Scientific and Technological Research Council of Turkey) serves as the locomotive of Turkey's R&D activities in artificial intelligence. The AI Institute within TÜBİTAK BİLGEM operates as the country's most comprehensive AI research center.

BİLGEM AI Institute

TÜBİTAK BİLGEM AI Institute conducts advanced research in areas such as natural language processing, computer vision, robotics, autonomous systems, and machine learning. The institute develops both fundamental research and applied projects, providing solutions to various sectors, primarily the defense industry and public institutions.

The models and datasets developed by TÜBİTAK for Turkish natural language processing constitute critical resources for Turkey's AI ecosystem. Significant progress has been made in Turkish language models, text classification, sentiment analysis, and machine translation.

Defense Industry and AI

Turkey's defense industry is one of the sectors where AI technologies are most intensively used. Unmanned aerial vehicles (UAVs), autonomous ground vehicles, smart munition systems, and cybersecurity solutions rely on AI-enhanced technologies. Companies such as Baykar, HAVELSAN, ASELSAN, ROKETSAN, and TAI are globally recognized for developing AI-based defense systems.

6. AI Research at Universities

Turkey's leading universities play a significant role in AI research and education. The increase in AI curriculum programs at undergraduate and graduate levels, the establishment of research centers, and the strengthening of industry-university collaboration indicate that the academic ecosystem is developing.

Leading Universities and Research Centers

METU, Bogazici, ITU, Bilkent, Sabanci, and Koc universities are Turkey's leading institutions in AI research. The AI research centers established within these universities conduct both fundamental research and applied projects. International-level publications and patents are produced, particularly in the fields of deep learning, natural language processing, computer vision, and robotics.

Structures such as Istanbul Technical University's AI and Data Science Center, Bogazici University's PILAB research group, METU's ImageLab, and Bilkent University's RETINA research group produce internationally recognized research outputs. These centers also collaborate with industry to develop solutions for the sector's AI needs.

Education and Human Resources

Turkey is making significant strides in AI education both quantitatively and qualitatively. Opening AI Engineering departments, adding AI courses to existing Computer Engineering curricula, and creating interdisciplinary programs are among the efforts to close the human resource gap. However, brain drain remains a serious challenge in retaining qualified AI researchers in the country.

7. Turkey's AI Ecosystem Analysis

Turkey's AI ecosystem has a dynamic structure consisting of startups, large technology companies, research institutions, government agencies, and investors. The ecosystem, which has shown rapid growth in recent years, stands out with both its strengths and areas for improvement.

AI Startup Ecosystem

The number of AI-focused startups in Turkey has shown a significant increase over the past five years. Startups developing AI solutions in health technologies, fintech, retail, logistics, and agricultural technologies cater to both local and international markets. Istanbul, Ankara, and Izmir are the primary cities where AI startups are concentrated.

Turkey's strong engineering tradition, young and dynamic population, strategic geographic location, and growing domestic market offer significant advantages for the AI ecosystem. However, insufficient risk capital, brain drain, bureaucratic obstacles, and infrastructural inadequacies are among the factors limiting the ecosystem's growth potential.

Sectoral AI Use Cases

Banking and finance is one of the most widely adopted areas for AI technologies in Turkey. Fraud detection, credit scoring, customer service chatbots, and algorithmic trading systems are the main AI applications in the sector. In healthcare, significant projects are underway in medical image analysis, drug discovery, disease prediction models, and personalized treatment planning.

In the manufacturing sector, AI solutions are becoming increasingly widespread in predictive maintenance, quality control, supply chain optimization, and process automation. In agriculture, AI technologies are used for precision farming, crop disease detection, irrigation optimization, and yield forecasting.

8. Global Comparison and Positioning

Turkey's global position in artificial intelligence can be evaluated through various indices and comparisons. Reference reports such as the Global AI Index, Government AI Readiness Index, and Stanford AI Index measure countries' AI capacities across different dimensions.

Index Rankings

Index	Turkey's Rank	Leading Country
Government AI Readiness	42nd	USA
Global AI Index	35-40 range	USA
AI Publication Count	16-20 range	China
AI Patent Count	25-30 range	China

Comparative Analysis

The USA and China are clear leaders in artificial intelligence. Countries such as the UK, Canada, Germany, France, and South Korea emerge as second-generation AI powers. While Turkey is in a relatively good position among developing countries, the gap with leading nations is significant. Improvements are needed particularly in R&D expenditure, venture capital investment, and qualified human resources.

From a regional perspective, Turkey competes with the UAE, Israel, and Saudi Arabia in the Middle East and North Africa region. Israel stands out with its strong startup ecosystem and R&D capacity, while the UAE and Saudi Arabia attract attention with large government investments. Turkey's strong engineering infrastructure and young population offer important advantages in this competition.

9. Future Perspective and Recommendations

Strategic steps need to be taken for Turkey to achieve a stronger position in artificial intelligence. Updating the existing strategy, completing the regulatory framework, and increasing ecosystem support are fundamental elements of this process.

Policy Recommendations

First, preparing a comprehensive AI-specific legal regulation is of great importance. A regulation aligned with the EU AI Act but also considering Turkey-specific conditions will both protect citizens' rights and support the innovation environment. Second, R&D investments need to be increased and incentive packages for preventing brain drain need to be expanded.

Third, strengthening public-private sector-university collaboration and establishing joint research centers will increase the ecosystem's synergy. Fourth, expanding international partnerships and Turkey's active participation in global AI governance discussions will enhance the country's international visibility and effectiveness. Finally, establishing an ethical AI framework and raising societal awareness will ensure the responsible use of artificial intelligence.

Frequently Asked Questions