In 2026, Iraq's AI and machine learning sector is experiencing significant growth, with private investments surpassing government funding. The country is increasingly adopting AI solutions across sectors like oil, healthcare, and finance, reflecting efforts to modernize its economy. The rise in startups indicates a burgeoning innovation ecosystem, supported by a growing AI workforce of over 2,100 data scientists and developers.
Despite the rapid expansion, challenges remain, including infrastructure limitations and the need for skilled professionals. Nonetheless, Iraq's strategic investment in AI indicates a strong commitment to digital transformation, aiming to improve public services, optimize resource management, and boost economic diversification. Continued growth in AI spending will likely position Iraq as a rising tech hub in the Middle East.