Iran will expand its knowledge-based economy development headquarters from eight to 10 units in 2025 with the addition of artificial intelligence and cybersecurity divisions, the Vice Presidency for Science and Technology announced on May 25, Young Journalists Club reported.

The expansion comes as Iran seeks to close the technology gap with regional rivals, particularly Saudi Arabia and Israel, which have established themselves as leaders in artificial intelligence and cybersecurity innovation through substantial investments and international partnerships.

Abdolhasan Bahrami, Director of the Knowledge-Based Economy Development Headquarters Steering Centre, said two new headquarters for artificial intelligence development and cybersecurity have been approved by the government.

"These headquarters will begin operations with the president's directive and introduction by the Vice President for Science," Bahrami said during a meeting on developments in the knowledge-based economy sector.

He outlined three main missions for the Vice Presidency for Science: monitoring, tracking and evaluating knowledge-based economy development headquarters; technology penetration in priority knowledge-based economy value chains; and innovation empowerment and market development.

Bahrami announced special mining, petrochemicals and machinery programmes aimed at reducing foreign currency expenditure.

"Special programmes in industrial machinery, mining and petrochemicals have been placed on the headquarters agenda, as these two sectors require technology penetration due to high foreign currency costs," he said.

The official said 190 innovative projects worth IRR6 trillion ($7.2mn according to the available rate) received support last year, with most projects focused on increasing domestic value-added production and preventing raw material exports.

Iran allocated $115.6mn for artificial intelligence research and development in early 2025, with the National Development Fund providing $15.6mn in grants to universities and private research centres alongside $100mn in project loans, Press TV reported.

The government established the National AI Organisation as an independent presidential body in July 2024, as Tehran pursues plans to rank amongst the world's top 10 AI leaders by 2032.

Officials unveiled a prototype of Iran's national AI platform on March 15, developed with Sharif University of Technology, Tehran Times reported. The system incorporates GPU-based processing infrastructure, large language models, multi-modal capabilities, intelligent agents, and industrial application layers.

Military applications have dominated Iran's AI development programme, with the Islamic Revolutionary Guard Corps Navy creating more than 2,600 AI-enhanced equipment pieces, including advanced missiles and drones, Tehran Times reported.

Iran demonstrated AI-powered missile capabilities on January 26 during the "Prophet Muhammad" naval exercise, deploying Mohajer-6 and Ababil-5 drones equipped with artificially intelligent Qaem and Almas missiles, Press TV reported at the time.