Estonia is moving ahead with plans to create official digital identities for artificial intelligence agents, a step that could make the country the first in the world to establish a state-backed framework allowing AI systems to act on behalf of individuals, businesses and organisations, the government announced on June 17.

For Estonia, the proposed AI identity framework is another attempt to position itself at the forefront of digital innovation, this time by preparing for a future in which autonomous AI systems become active participants in everyday economic and administrative life

The initiative was endorsed by the Eesti.ai advisory board and backed by Prime Minister Kristen Michal, who said the country has an opportunity to help define standards for the next stage of the digital era.

"In the future, AI will increasingly carry out digital tasks on our behalf, compiling reports, preparing declarations or interacting with information systems," Michal said. "To that end, it must be clear who is acting on whose behalf with what rights, and who is ultimately responsible."

The proposed system would introduce digital identities – or AI ID codes – that grant AI assistants limited and clearly defined powers. Rather than giving AI tools unrestricted access to personal or corporate accounts, users would be able to determine exactly what actions an AI agent may perform.

For example, an AI system could be authorised to view information, draft documents, prepare payments or operate within predetermined financial limits, while all actions would remain traceable and auditable.

According to the prime minister, the concept builds on the foundations of Estonia's highly digitised public sector, which already relies on digital identities, digital signatures and the X-Road data exchange platform.

"The success of Estonia's digital state was built on trust," Michal noted. "Now that we find ourselves in the age of AI agents, we are faced with the same question: how can we use that technology in a way that makes life easier but without losing control and accountability?"

The advisory board also discussed broader technology initiatives, including the possibility of creating a large-scale testing environment for autonomous systems in the Baltic Sea region. The proposed Merepesa project would provide developers with facilities to test air, surface and underwater drones in real-world conditions, potentially strengthening Estonia's position in defence technology and autonomous systems development.

Meanwhile, Estonia continues to expand its national AI strategy. One flagship project, the Most AI-Savvy Nation initiative, has already trained around 1,200 participants through practical workshops held across six cities. The programme aims to reach 10,000 participants by the end of the year.