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Introduction

Regulatory landscape

Switzerland has not yet adopted a statute dealing specifically with artificial intelligence (AI).1 However, this does not mean that there are no activities related to AI. The Federal Council has already implemented certain measures to ensure an appropriate use of AI. For instance, on 25 November 2020, the Federal Council enacted guidelines for the use of AI in the federal departments and agencies.2 The guidelines emphasise principles such as transparency, accountability and fairness. Furthermore, the Federal Council initiated a competence network for AI (CNAI).3 The Federal Council has also launched a national research programme, NRP 77: 'Digital Transformation', which includes research concerning AI, particularly ethics and AI.4 Apart from these specific activities, the Federal Council is of the opinion that the impact of the use of AI is to an extent dependent on the specific context of use. As a result, the Federal Council has initiated regulatory measures in context-specific areas. One of these specific regulatory measures is the revised Federal Act on Data Protection (FADP), which deals with data privacy in relation to (fully) automated decision-making, among other topics.5

On an international level, Switzerland is closely monitoring the discussions concerning the European Union's Artificial Intelligence Act (the EU AI Act).6 Prior to harmonising Swiss law with the EU AI Act, the Federal Council wants to analyse the impact of the EU legislation in detail, which is only possible now after its enactment.7 However, it is expected, and also requested by industry organisations, that Switzerland will harmonise its AI regulations with EU law to avoid unnecessary regulatory costs for Swiss companies exporting services and products to the EU market. In addition, Switzerland is involved in the discussions in the Council of Europe concerning an AI-specific treaty.8 At its meeting on 17 May 2024, the Council of Europe adopted the Council of Europe's AI Convention (Europe Framework Convention on Artificial Intelligence and Human Rights, Democracy and the Rule of Law).

The Federal Council wants to publish further information regarding potential sector-specific regulatory measures at the end of 2024. There is little information yet on the potential content of this report, and it remains unclear what regulatory approach the report will propose: only sector-specific rules, if necessary, or a similar approach to the European Union's AI Act. In parallel, academics are publishing position papers and other proposals for the amendment of existing laws or the enactment of new provisions dealing with specific issues arising from the use of AI, such as transparency and discrimination.9

AI industry

The AI industry in Switzerland in 2024 is thriving, driven by innovation across sectors such as healthcare, finance, manufacturing and sustainable technologies. This landscape is shaped by a combination of cutting-edge research, world-class infrastructure and a dynamic start-up ecosystem.10

Research and AI infrastructure

Regarding world-class universities, institutions such as ETH Zurich and EPFL continue to be central to AI research and innovation. These universities are not only advancing AI theory but also playing a key role in developing applied AI solutions across various sectors. ETH Zurich, in particular, opened a new research centre for AI, the ETH AI Center, in 2020.11

In the realm of AI research, Switzerland launched the Alps supercomputer in 2024, a collaboration between ETH Zurich and EPFL, which is housed at ETH Zurich, EPFL, CSCS Lugano and the Paul Scherrer Institute (PSI).12 This supercomputer, with over 10,000 GPUs, will be among the world's most powerful and is aimed at developing industry-specific AI models for fields such as robotics, medicine and climate science. It positions Switzerland as a global hub for AI development by enabling researchers and businesses to leverage unprecedented computational resources.

AI in healthcare and life sciences

Switzerland has seen significant advancements in applying AI to healthcare and life sciences. AI-driven technologies are being used in personalised medicine, medical imaging and drug discovery. Life Sciences companies in Switzerland are investing heavily in AI to accelerate R&D and improve patient care.

The country's strong pharmaceutical and biotechnology sectors are increasingly integrating AI for predictive analytics, diagnostics and process optimisation. Start-ups and established healthcare companies are leveraging AI to revolutionise the way that treatments are developed and delivered.

AI in finance and fintech

Switzerland's financial services sector is integrating AI in several key areas, including fraud detection, personalised financial services and algorithmic trading. AI is being used to streamline compliance processes and enhance customer experience.

Leading Swiss banks and fintech start-ups are adopting AI-powered tools to offer smarter wealth management solutions, leveraging Switzerland's reputation as a global financial hub.

AI in sustainability and green technologies

Green AI is becoming increasingly important in Switzerland, with AI applications designed to optimise energy use, enhance efficiency in renewable energy systems and address climate change. AI is being used to manage smart grids, optimise energy consumption and reduce carbon footprints in various industries.

The Alps supercomputer is also being used to develop models for climate science, which further highlights the country's commitment to using AI for sustainability.

Start-ups and innovation ecosystem

Regarding start-up ecosystems, Switzerland boasts a vibrant AI start-up ecosystem, driven by its world-renowned academic institutions and innovation hubs. Zurich and Lausanne, in particular, have become hotspots for AI start-ups, focusing on sectors such as health tech, fintech and advanced manufacturing.

Swiss start-ups benefit from a strong support system that includes innovation grants, accelerators and government-backed initiatives to promote technology transfer from academia to industry.

AI applications in manufacturing and robotics

Switzerland is also leveraging AI in manufacturing and robotics, two areas in which precision and efficiency are critical. AI technologies are used to optimise production lines, manage supply chains and drive innovations in robotics for industrial applications.

Global collaboration and research centres

Several global technology companies, such as Google, IBM and Microsoft, maintain substantial AI research centres in Switzerland. These multinational companies are contributing to the country's position as a leading player in AI research and development. Google's largest research operation outside the United States is based in Zurich, focusing on AI innovations through its Google Brain team.

Switzerland's AI landscape is thus characterised by a blend of academic excellence, world-leading research infrastructure, a growing start-up ecosystem and applications across a range of industries, whichmake the country a key player in global AI innovation.

A document titled 'Charting the Future: Switzerland's Path to Generative AI Leadership in 2024 and Beyond', published by authors of IMD, digitalswitzerland and EPFL in 2024, discusses the current state and future trajectory of AI, particularly generative AI (Gen AI), in Switzerland. On the basis of proprietary surveys and expert insights, it highlights the following key findings and recommendations:13

  1. widespread adoption: AI is already widely used across Swiss homes and organisations, with 62 per cent of professionals reporting its use in three or more business functions;
  2. skills and training demand: AI is reshaping the workforce, with many anticipating significant changes in job roles and a surge in demand for reskilling. Up to 50 per cent of employees may need to be reskilled within the next three to five years;
  3. regulatory concerns: while there is optimism about AI's benefits, there are serious concerns about privacy, data security, over-reliance on technology and data manipulation. There is a lack of clear policies, with 52 per cent of organisations not having an AI framework;
  4. need for regulation: Swiss professionals are largely uninformed about official AI policies. While many prefer a mix of public and private regulation, there is growing demand for more robust and clear regulatory frameworks. Switzerland must act to safeguard innovation while managing risks; and
  5. upskilling for the future: AI will drive the need for continuous education, with a focus on new skills in AI, cybersecurity, data engineering and human-AI collaboration. Continuing education institutions will need to transform to meet this demand.

In summary, the report emphasises Switzerland's opportunity to lead in the AI sector by balancing innovation with responsible regulation and preparing its workforce for the technological shift ahead.