The final report of Finland’s Kasvuriihi growth working group presents 41 proposals for accelerating economic growth and renewing business activity. Its central recommendations focus in particular on supporting corporate renewal, and it includes a section on artificial intelligence — summarised in this article.
What is the Kasvuriihi project?
Kasvuriihi is a working group set up by the Finnish Government in autumn 2024 with the aim of identifying concrete ways to accelerate Finland’s economic growth and renew business activity. Established by Prime Minister Petteri Orpo, the project was led by Risto Murto, CEO of the pension insurer Varma, and its work focused in particular on renewing the corporate structure, attracting investment, and developing skills and capital markets.
The working group presented 41 proposals covering, among other things, strengthening the operating conditions for growth companies, green transition investment, and growth opportunities in the defence industry. The report also emphasises the importance of AI and R&D investment in raising productivity. The government is reviewing the report’s recommendations in March and at its mid-April budget session.
The role of AI in the Kasvuriihi final report
In the final report, published on 28 March 2025, AI and the data economy are seen as central factors in accelerating Finland’s economic growth and improving productivity. Although Finnish companies have strong basic skills in making use of digitalisation, AI is used mainly to make existing processes more efficient, and not yet widely to develop new business models or innovations.
Finland does, however, have the potential to become an international frontrunner in AI and related technologies such as quantum computing and the development of sustainable computing capacity. A particular challenge is the shortage of AI skills, which prevents large-scale adoption in both companies and the public sector. Scaling AI-based innovations also requires more investment.
The report highlights two central proposals for advancing AI adoption in Finland:
Proposal 1: Strengthening AI skills and adoption (Proposal 3.16) – “Skills and talent are the key bottleneck in adopting AI”
To maximise the benefit from AI, the report proposes a comprehensive training programme to improve the AI skills of the working-age population in both the private and public sectors. It cites Denmark’s model, where one million citizens are trained in the basics of AI.
The report also emphasises closer cooperation between companies and research institutions, so that top researchers and specialists can be better integrated into the domestic business landscape. The ELLIS Institute and the LUMI supercomputing centre could act as important centres of expertise.
Adopting AI also requires long-term funding models and innovation ecosystems in which companies, research institutions, and investors can develop new solutions. Centralised ecosystems, such as round-table discussions led by the prime minister or state innovation centres of the kind Singapore has, were seen as possible models.
Proposal 2: Strengthening Finland’s position in AI legislation (Proposal 3.17)
The report proposes that Finland should become a European frontrunner in the regulation of AI and the data economy. A clear legislative framework could speed up AI adoption and attract technology companies to invest in Finland.
A key measure proposed is regulatory sandboxes, which allow new AI-based business models to be developed safely. The report takes a critical view of how the EU AI Act is being interpreted, and argues that its practical implementation in Finland should be clarified.
In healthcare, for example, AI’s role is unclear, as different wellbeing services counties have arrived at different interpretations of its use in patient work. Harmonising national guidance could speed up AI adoption and save significant public resources.
The report stresses that Finland must actively influence EU-level AI and data regulation so that domestic players can use AI competitively.
According to Kasvuriihi, making use of AI requires both skills development and an anticipatory regulatory environment. If implemented, the proposals could make Finland a frontrunner in AI technology and significantly accelerate the country’s economic growth.
