Central European economies are emerging as unexpected beneficiaries of the global artificial intelligence (AI) boom, with Poland and Hungary seeing rapid growth in exports linked to AI infrastructure as companies expand supply chains beyond traditional manufacturing.

While the region is not a major producer of advanced semiconductors or the world's leading AI technologies, analysts say its industrial base, skilled workforce and existing manufacturing networks could allow countries to capture a larger share of the expanding market for servers, electronics and other AI-related equipment.

The European Bank for Reconstruction and Development (EBRD) said in its June 2026 Regional Economic Prospects report that AI-related exports from its economies were growing faster than other exports, helping to support growth at a time when traditional manufacturing sectors, particularly automotive production, have faced weaker demand.

"One bright spot is that the AI boom in the United States is generating strong demand for goods linked to AI-related activities, including processors, optical equipment, communications technology, and computer hardware," EBRD chief economist Beata Javorcik said in an interview with IntelliNews on the release of the report.

"As a result, Central European countries such as Hungary and Poland are experiencing a surge in exports."

According to the June Regional Economic Prospects, exports of AI-related products from Hungary rose 42% year-on-year in 2025, while Poland recorded a 21% increase. Over the same period, China's exports of AI-related products increased by 19%.

The report said the shift in global trade flows following higher US import tariffs in 2025 had favoured goods linked to data centres and AI supply chains, while reducing the relative importance of some traditional sectors.

"Overall changes in US imports from the EBRD regions were limited, with a small shift from manufactured goods towards commodities," the report said. "The expansion of AI supply chains supported exports and economic growth globally."

Hungary's AI manufacturing boost

Hungary's recent industrial performance illustrates how the AI boom is beginning to reshape the country's export structure. The country's automotive sector remains its largest manufacturing industry, accounting for around a quarter of industrial output, but recent export gains have increasingly been driven by electronics and AI-related server production.

Hungarian financial website Portfolio.hu reported, following the release of May industrial data by the Central Statistical Office (KSH), that the country's export recovery was being driven primarily by AI-related server manufacturing rather than vehicle production. The production of computer, electronics and optical equipment, which accounts for around 15% of Hungarian manufacturing, surged 43%, supported by increased output of peripherals.

A major contributor has been Cloud Network Technology, a subsidiary of Taiwan's Foxconn, which operates a manufacturing facility in Komárom near the Slovak border producing server systems used in AI infrastructure and cloud computing, according to Portfolio.hu.

The company, established in Hungary in 2017, has expanded rapidly as demand for AI servers, networking equipment and cloud infrastructure has increased. Foxconn said its Hungarian workforce exceeded 2,000 employees in 2025 after hiring more than 900 workers.

Cloud Network Technology has become one of Hungary's largest exporters and was the country's third-largest company by revenue in 2025, after energy groups MOL and MVM, recording sales of HUF2.6 trillion (€7.2bn).

The expansion reflects a broader strategy by technology manufacturers to diversify production closer to European customers while reducing dependence on Asian supply chains. Hungary has sought to attract high-value manufacturing investment alongside its long-established automotive sector, offering incentives and developing industrial infrastructure to support foreign investors.

The government has also promoted AI adoption as part of its industrial policy, with companies including Cloud Network Technology involved in discussions on artificial intelligence and manufacturing development.

The shift has helped offset weakness elsewhere in industry. KSH data showed Hungarian industrial output fell 0.4% year-on-year in May, although it increased 5.4% when adjusted for working days. Monthly output rose 2.3%. Automotive production edged up only 0.7% year-on-year, while food, drinks and tobacco output declined 4.5% and electrical equipment production fell 5.3%.

Manufacturing orders, however, pointed to stronger future activity. New orders rose 13.6% year-on-year in May, driven by a 15.8% increase in export orders, while total order books were 41% higher than a year earlier.

Poland's AI opportunity

Poland may have an even greater opportunity to benefit from AI adoption, although the main gains are likely to come not only from exports but also from productivity improvements across the economy.

A World Bank report published in June said artificial intelligence could increase Poland's real GDP by between 1.3% and 12.1% by 2035, depending on how quickly businesses invest, workers adapt and government policies support the transition.

"Poland is well positioned to harness AI as a source of productivity, better jobs, and economic growth," Ary Naïm, World Bank Group country manager for Poland, said.

"The challenge is not access to AI. It is using the technology productively — mobilising investment in infrastructure and skills that underpin future growth, from digital networks to energy, water, and education, while ensuring workers can adapt and thrive as the economy evolves."

The World Bank said only 8% of Polish firms currently use AI, suggesting significant potential for adoption. However, it warned that economic gains would depend less on simply obtaining AI technology and more on companies' ability to integrate it effectively into their operations.

"Productivity gains will depend less on access to technology than on firms’ ability to use it effectively," the report said, highlighting the importance of management skills, innovation capacity and a predictable regulatory environment.

The business services sector, one of Poland's largest employers, could see some of the earliest effects as routine tasks become automated and companies move towards higher-value activities.

The World Bank said AI was unlikely to fundamentally alter Poland's economic structure but would instead transform how work is organised, with workers moving between occupations and tasks.

"Reskilling programmes, active labor market policies, and transition support will play an important role in helping workers adapt before adoption accelerates," it said.

Infrastructure and supply chains

BNP Paribas Economic Research said in a February 2026 report that Central European economies were among the emerging markets best positioned to deploy and use AI, although they lacked the dominant positions held by Asian economies in semiconductor manufacturing.

"Central European countries do not possess obvious comparative advantages in AI supply chains," the report said. "However, they benefit from a well-educated workforce and infrastructure that should facilitate the dissemination of AI and its integration into both society and the economy."

The report said countries positioned within AI supply chains could benefit from both economic growth and increased strategic importance as demand rises for semiconductors, data centres, energy and critical materials.

Globally, the AI supply chain is dominated by Asian economies, which account for more than 85% of semiconductor exports and around 65% of exports of AI-related goods, according to BNP Paribas. However, the rapid expansion of AI infrastructure is creating opportunities further down the supply chain, particularly in countries with established electronics manufacturing capabilities.

BNP Paribas said the impact of AI on emerging economies was currently driven mainly by investment in physical infrastructure rather than immediate productivity gains. "Although AI is expected to be adopted at a faster rate than previous innovations, its impact on productivity will only become evident after a period of diffusion of the new technology," the report said.

For Central Europe, the challenge will be converting the current export opportunity into longer-term productivity growth. Governments will need to invest in digital infrastructure, education and workforce skills while encouraging companies to move beyond assembly operations towards higher-value activities.

The EBRD warned that despite the AI boost, the broader economic environment remained difficult, with growth across its economies estimated at 2.9% year-on-year in the first quarter of 2026, with particularly weak performances in several large markets.

Still, the rapid expansion of AI supply chains offers a new source of momentum for economies that have traditionally relied heavily on automotive manufacturing and other industrial exports.