Azerbaijan drafts AI rules and signs MoU to test Grok in public services

Azerbaijan's Ministry of Digital Development and Transport has prepared three draft Cabinet of Ministers resolutions setting requirements for artificial intelligence systems, for personal data risks and for high-performance computing infrastructure, it said on 8 October.

The announcement came a week after the ministry signed a memorandum with SpaceXAI to explore using the company's Grok models across government services. The drafts are being prepared under the Artificial Intelligence Strategy of the Republic of Azerbaijan for 2025 to 2028, the ministry says. None has been adopted. The ministry said the frameworks and requirements would be made public once the documents are finalised and approved.

Three drafts at different stages

The first, on Requirements for Responsible and Ethical Artificial Intelligence Systems, would apply to AI systems developed, enhanced or used in Azerbaijan. It is undergoing a second round of coordination with government authorities, the release says.

The second sets rules for identifying and preventing risks to personal data in the design, deployment and use of AI systems. It has been submitted to the relevant authorities for initial coordination, and work is under way on a final version, the ministry says.

The third, Requirements for High-Performance Computing Infrastructure, is also in coordination. It would set requirements for public authorities, local self-government bodies, legal entities and individuals in Azerbaijan for computing infrastructure meant to serve as a foundation for AI applications, the ministry said. The release gives no capacity figure, budget or timetable. It also says documents have been prepared for a regulatory sandbox to test innovative solutions, without describing how the sandbox will work.

The SpaceXAI memorandum

The memorandum with SpaceXAI, signed in Baku and announced on 1 October, envisages exploring the use of AI solutions built on the company's Grok models in public services and other priority areas of the country's digital transformation, the ministry said. It is not limited to a single application and covers all government agencies, the release says. The parties will assess where AI can be used and consider wider deployment of solutions that succeed.

A roadmap will be drawn up covering pilot projects, technical demonstrations and engagement with stakeholders, and each project will be carried out under a separate agreement, the release says. Deputy Minister Rashad Hasanov said the memorandum provides a framework for examining uses ranging from the internal operations of government agencies to citizens' access to services through the mygov portal, and for examining the deployment of such solutions "within our national digital infrastructure", the ministry said. The release says cooperation will follow security measures and data protection protocols, but it does not say where data handled in any pilot would be processed.

Dustin Yelinek, SpaceXAI's head of global government affairs for Latin America, said in the release that the company was pleased to partner with the ministry "to bring Grok to government and help deliver faster, higher-quality services to citizens". The ministry links the memorandum to the AI strategy and to an Action Plan for 2026 to 2028 on Accelerating Digital Development. It signed a separate framework memorandum with AZCON Holding and Microsoft Ireland Operations Limited on 25 September, which leaves the terms of specific projects to a later stage, a ministry release says.

The rulemaking runs alongside an effort to lift Azerbaijan's position in international rankings. Mr Hasanov, who heads the Technology and Innovation Working Group of the Commission on Business Environment and International Rankings, told a meeting on 12 October that Azerbaijan had risen nine places to 85th in the Global Innovation Index 2026, its largest annual improvement in the index, the ministry said. He called the ranking as a whole unsatisfactory given that the country ranked 65th in the Innovation Input category, and said a lack of data for several indicators made it difficult to assess the country's actual position.