İzmir aspires to lead Turkey's AI transformation

• AI development ‘vital’ to Turkey
• Province provides 6% of GDP
• Steep tech learning curve

İzmir, Turkey’s third-largest city, is seeking to position itself as the country’s artificial intelligence centre, with plans to combine private sector investment, logistics and academia to create an integrated tech-savvy economic hub. 

The province of İzmir, with the city as its capital, already accounts for around 6 percent of national GDP, third behind the economic powerhouse that is İstanbul (30 percent) and the capital Ankara (9.6 percent). It utilises its location on the Aegean coast as a gateway to Turkey’s Asian hinterland through strong road, rail and air links. 

The region is also one of Turkey’s largest maritime centres thanks to Alsancak Port which, until it withdrew its offer in February, was the subject of a takeover bid by Abu Dhabi logistics corporation AD Ports. 

Sibel Zorlu, chair of the Aegean Industrialists and Business Peoples’ Association board of directors, told AGBI it is vital for the Turkish economy to embrace the transformation created by AI, with İzmir leading the way. 

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“We believe that İzmir can be a strong centre in this field; we see our universities, industrial zones, entrepreneurs and investors being an active part of this transformation,” she said. 

Growing geopolitical tensions pose challenges, especially the escalation of the Israel-Iran conflict in recent weeks, but the region’s AI ambitions also face more immediate stumbling blocks.

Fewer than 5 percent of Turkish businesses deploy AI in their commercial activity, according to a 2024 survey conducted by state statistics agency Turkstat.

A lack of understanding of the technology, high costs and incompatibility with existing systems are cited as the main reasons for not utilising AI platforms. 

This could change if İzmir’s centres of higher learning have their say. 

The İzmir University of Economics has announced it is developing an AI research centre that will work both within the campus structure to extend AI across the facility’s courses but also with the private sector to expand the reach of applications. 

University rector Professor Hakan Abacıoğlu told a conference on digital transformation in early June that İzmir had a key role to play in building a sustainable future. 

“Artificial intelligent systems must find practical application in daily life,” he said. “Technology is crucial for transforming life, improving student-centred education and producing high-quality knowledge for society.” 

Already active in this transformation is the İzmir Yuksek Technology Institute with its Artificial Intelligence and Design Laboratory, which focuses on AI applications in the fields of health and medicine, data transfer, navigation systems and autonomous vehicles. 

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One of the drivers for greater take up of AI in the İzmir region will be a new automotive development being rolled out by Chinese marque BYD in the neighbouring province of Manisa, 40 kilometres to the east.

The electric and hybrid car maker plans to start production at its $1 billion facility, which will include a research and development centre and have an annual 150,000 vehicle capacity, in late 2026. 

The investment by BYD, along with expanding domestic sales of electric vehicles (EVs) and plug-in vehicles, will see AI deployment shift up a gear, according to Zorlu. 

“This investment will bring about a serious flow of information and technology in areas such as sustainable mobility and electric vehicle technologies,” she said. 

“This creates a dynamic that will directly trigger the development of artificial intelligence applications.”

EVs and autonomous systems are among the areas that make extensive use of artificial intelligence technologies, said Zorlu, with many elements such as battery management systems, smart production lines, sensor-assisted driving technologies and data-driven maintenance processes work based on AI. 

“I believe this investment is not only an economic but also a strategic opportunity.”

“Our goal is to ensure that the artificial intelligence solutions that this production facility will need come from our region.”