Algarve urged to bet big on AI and future tech – Portugal Resident

The Algarve has been challenged to stop ‘imitating Silicon Valley’ and instead carve out its own identity as a specialist tech hub, with artificial intelligence and robotics at the centre of its future economy.

Speaking at a lunch-debate in Vilamoura organised by the British-Portuguese Chamber of Commerce (BPCC), Secretary of State for Digitalisation, Bernardo Correia, warned that the region must make bold choices if it wants to break away from its heavy reliance on tourism and real estate.

“We should not simply copy what has already been done elsewhere. The Algarve does not have to be Silicon Valley; the Algarve has to be the Algarve. And the definition of the Algarve must evolve. It must be something that bets on the highest technology and on what it will evolve into in the future,” Correia said at the event, held on May 28 in Vilamoura.

“Do we want to build something similar to what already exists in Lisbon, Porto, or Prague? No. There are already startups and tech hubs in the rest of the country and Europe – London, Berlin, Barcelona. Do we want to create another generic hub with multiple verticals? No. So I think what the Algarve needs is selectivity. It is necessary to choose where to invest and how to invest in critical areas.”

To prove his point, the secretary of state gave two examples. The first was one of Tesla’s factories dedicated to robot production, between San José and San Francisco.

“Their business plan is to build one million robots next year and ten million the following year, at a price between $20,000 and $30,000 per unit – an affordable amount for the average American family.

“Basically, their economy is already preparing to manufacture the next refrigerator, the next television, the next car, the next household appliance. In the not-too-distant future – perhaps three to five years – we will see robots spread widely across society.”

The second example came from a conference at Stanford. A researcher, eight months pregnant, said she trusted autonomous cars more than human drivers. “She trusted not only her own life, but also the life of her baby, more to an autonomous car than to a human driver. This shows how quickly technology becomes normalised. Things that do not even exist yet in Portugal or Europe are already normal elsewhere,” Correia said.

“Therefore, we should invest where growth will happen. We should not replicate what others are already doing. We should invest in the technologies that will shape the future.”

The government official also spoke about opportunities in the aerospace and defence sector, which may receive state funding. “This is exactly how Silicon Valley began: investment in microchips driven by the space programme and the defence industry.”

“If the region wants to take this seriously, it needs to think about AI factories and the ability of the region to produce AI as a source of value and an economic ecosystem,” he said.

Regarding human capital, he highlighted the role of the University of Algarve and the “entrepreneurs that exist in the region, but there is still a lot of work to do in partnership with academia, to ensure a technologically more positive future for the Algarve.”

The former Google executive also highlighted the influx of digital nomads that the region already attracts as an advantage.

“The Algarve has an extraordinary community of digital nomads. They bring benefits and ideas, but by definition they are not permanent. We need to think about a more permanent community that collaborates to solve big problems and big challenges. And by this, I mean bringing energy, knowledge, and collaboration to make things move forward. Above all, I think the region needs to think very clearly about how to create collaboration across the entire ecosystem, to generate economies of scale and, above all, to encourage the brilliant minds that already exist here to think bigger and better.”

Bernardo Correia revealed that under the National Digital Strategy and the National Artificial Intelligence Agenda, a special visa is planned – a fast-track system to attract highly qualified professionals in cutting-edge technologies.

“We want to create conditions for Portuguese companies that want to be at the forefront of technology to attract the best talent available in the world,” he explained. “We also want to create conditions for that talent to come from Portuguese educational institutions, and we also aim to reskill national talent, as we are aware that there is urgency in the Portuguese economy and we need to grow quickly.”

“It would be almost negligence not to pursue this opportunity,” he concluded.

150 technology companies within seven years

Speaking to Barlavento newspaper, Miguel Fernandes, CEO of the Algarve-based company Dengun, revealed a plan to create 150 technology companies in the Algarve within seven years.

“We believe we need to create future jobs so that new generations have the possibility of staying here to work. There is work in tourism and, as we know, in real estate, but in other areas, how many courses do we have at the University of the Algarve for which there is not enough work for people to remain in the region?” he asked.

The plan involves regional entities such as the university, the Algarve’s regional development coordination body (CCDR Algarve), and business associations, together with Algarve Evolution, which “has served as a brainstorming hub between these entities and there now seems to be a willingness to make this happen.”

Fernandes agrees with the Secretary of State’s proposal that the Algarve should focus on differentiation.

“We need to find specialisation. We are 400,000 people and more than 90% of the economy depends on tourism and real estate. We cannot try to be the best at inventing AI for tourism, agriculture, the sea, and everything at the same time. Let’s imagine we choose two transversal areas: robotics and artificial intelligence. And then we choose one or two sectors where we really aim to become excellent, because we are a small region. Maybe 10,000 people could really be part of this to compete globally.”

In other words, the Algarve cannot focus on being the best at everything at once.

“Niche, niche, niche. Specialisation. I think choices must be made. And nowadays AI and robotics are obvious choices. Whether this will destroy jobs or not, nobody knows. But we have to create new ones. With automation there is a direct correlation: fewer people will do certain tasks. Those people will have to do other things. With humanoids, autonomous cars, and AI capable of replacing many repetitive tasks, it is clear this will impact the workforce.”

“We must be brave enough to understand that this will happen. Not doing so is like burying your head in the sand.”

“The important thing is to understand that it is not about the technology itself – because technology is a means to an end – but about innovation. It can be in biotechnology, the sea, or whatever, but we must choose and try to understand what the jobs of the future are and have the ambition to create companies so that those jobs exist. And it is not just about creating them but also scaling up 500 ‘star companies’ that truly have the potential to grow and become future businesses.”

The AI challenge

As Miguel Fernandes pointed out, the whole world is learning to deal with the good and bad of AI.

“There is a new intelligence on planet Earth. It is the first time in human history that something exists that appears to think – and appears to think increasingly faster. This changes the way organisations and society are governed.” For Fernandes, infrastructure is the first obstacle. “There is not even 10% of the infrastructure needed to run the AI that is expected in the coming years globally. If we do not have that capacity, we will buy it from abroad and pay more.”

The CEO of Dengun also believes the University of Algarve faces a structural challenge. “Education has changed drastically. Today there are assignments and studies done by AI. But this is not a problem. It is reality. We must understand that. And also understand how many professions will be changed and how many courses will have to change. We must think about future jobs and create curricula for them.”

“I believe there is a lot of willingness to reflect on this within Algarve academia. If the university stopped being only an institution of teaching, theory, and thinking – which is important – and became also a laboratory of experimentation, creation, and innovation. And it is not a question of funding. It requires professors and academics to agree to it,” he concluded.