Turkey targets AI major league with $442 billion market potential

WISE NEWS PRESS / ISTANBUL, Türkiye — Dec. 1, 2025

With its young population and rapidly increasing number of startups, Turkey ranks in the "third group" of the global artificial intelligence (AI) race alongside nations like South Korea and Russia, aiming for a market size of $442 billion by 2031.

As the global volume of AI technologies approaches $2 trillion, competition between nations is intensifying. While KPMG reports forecast exponential growth for the Turkish market over the next decade, experts warn that realizing this potential requires a radical transformation in the education system and investment in qualified human resources.

Turkey's position in the global league

According to Halil Aksu, founder of the Turkey Artificial Intelligence Initiative (TRAI), Turkey is currently positioned in the "third group" of the global AI league. While the US and China dominate the first league, and European countries join Japan in the second, Aksu summarizes Turkey's standing:

"Turkey is in the same lane as rising players like South Korea, Saudi Arabia, the UAE, Russia, and India. However, this picture is not static; Turkey is definitely one of the countries with the highest potential to jump leagues in the next five to ten years."

Sectors such as banking, telecommunications, and e-commerce have reportedly made AI a strategic priority.

Startups and government support

Data from TRAI reveals that the number of AI startups in Turkey has surged from just 24 in 2017 to 419 by the third quarter of 2025. These ventures are primarily focused on smart cities, fintech, and energy sectors.

To support this growth, the government has allocated a budget of $3.5 billion under the HIT-30 program. Deputy Minister of Industry and Technology Zekeriya Coştu announced that the national AI strategy is being updated and an investment mobilization has begun. Meanwhile, the Parliamentary AI Research Commission is working on a flexible, Turkey-specific legal framework that will not stifle the sector.

Usage rates and the skills gap

According to October 2025 data from the Turkish Statistical Institute (TÜİK), 19.2% of the population uses AI tools. The highest usage rate is observed in the 16-24 age group, at 39.4%.

However, experts emphasize that consumption alone is insufficient. Dr. Eylem Derya Özgür, President of PERYÖN, noted that Europe is ahead of Turkey in education-industry cooperation. "While technology literacy and consumption are fast in our country, we need competency-based education systems to convert this into production," she stated.

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