Dear readers,
This week, we explore how Albania’s bold experiment in AI-powered governance spectacularly unraveled. Last September, prime minister Edi Rama unveiled Diella, the world’s first AI minister, promising to clean up public procurement and bring transparency to a historically corrupted system. But beneath the PR stunt, the project exposed the limits of digital trust: internal corruption, legal disputes over the avatar’s likeness, and a stark reminder that no algorithm can replace accountable institutions.
Across the Balkans, the tech ecosystem continues to evolve: Croatia’s Farseer raises $7.2 million to automate financial planning, Serbia’s Cloud City joins NVIDIA Inception to advance smart-city solutions, and Bulgarian drone company Dronamics launches its first defense platform. Meanwhile, Startup Macedonia’s founder Igor Madzov challenges the region to move from activation to mature ecosystems, emphasizing structure, liquidity, and repeatable exits over photo sessions.
Finally, mark your calendars: the WeAreDevelopers World Congress in Berlin (July 8–10) promises insights from NVIDIA, GitHub, Amazon, Atlassian, and OpenAI on the AI-driven future of software development, with COO Naida Vikalo emphasizing the power of collaboration alongside technical skill.
Enjoy the new edition,
Bojan Stojkovski
Editor-in-Chief, IT Logs
How Albania’s first AI minister fell apart

Albania’s AI minister Diella
Last September Albanian prime minister Edi Rama stood before cameras in Tirana and unveiled Diella, the world’s first AI minister. For a moment, it felt like Albania had finally hacked the future. A soft-voiced avatar in a traditional ethno-style outfit promised to cleanse public procurement, expose corruption, and do what generations of Balkan reformers had failed to achieve: make power behave and listen to its people.
For a country long trapped and continuously stumbling on its path towards the EU, the symbolism was irresistible. Albania would not just digitize: it would algorithmically purify itself, Rama said.
Diella, whose name means sun in Albanian, was not your ordinary chatbot. She was announced as a cabinet-level minister for Artificial Intelligence, tasked with overseeing public tenders and ensuring that every cent of taxpayer money is accountable. In a region where public procurement has historically been a black hole of patronage, this was a revolutionary step. However, it was also, as it would soon turn out, performance art.
Behind the screen, Diella had started quietly inside e-Albania, the government’s digital portal, built by the National Agency for Information Society, AKSHI, in collaboration with Microsoft using OpenAI models hosted on Azure.
Citizens would use her to navigate forms, request documents, and avoid the petty extortion that had become routine in Albanian bureaucracy. For many Albanians, this felt less like digital transformation and more like the simple joy of not having to slip someone cash to get a stamp or the “missing” document in their file.
When tech meets Albanian institutions
When Rama elevated Diella from a civil-service tool to a cabinet-level figure, she aslo became something else entirely. The new minister was now a symbol of a state that wanted to skip straight from post-communist dysfunction to AI-powered modernity, preferably without thinking about much needed institutional reforms.
Albania’s constitution, of course, had never imagined a non-human minister. Was Diella issuing binding decisions, or was she merely advisory? Could a machine be held accountable if a tender went sideways? None of this was actually clarified, as opposition politicians mocked the move. However, the spectacle and the PR stung mattered more than the structure. Albania was selling itself as Europe’s most innovative reformer. A tiny Balkan country would leapfrog bureaucracy with code, even if it forgot to bring the law along for the ride.
The illusion collapsed when prosecutors placed AKSHI’s two top leaders under house arrest, accused of links to a criminal organization that manipulated public contracts. The same agency that ran Diella also controlled the entire digital backbone of the Albanian state.
Meanwhile, international media, including The New York Times, captured the irony: Albania’s corruption-fighting AI might itself be operating inside a corrupted infrastructure. As Rama outlined, the robot had no relatives - but apparently the people who owned its servers did.
Faceless minister exposes the limits of digital trust
An AI can only detect irregularities in the data it receives, and if tenders are manipulated, Diella will just confirm these lies with mathematical confidence. The government never explained how Diella was protected from internal interference - or whether she had any protection from it at all.
Then came the second collapse - Diella’s face and voice belonged to an actor, Anila Bisha, hired under a limited contract to record material for the e-Albania chatbot. When that agreement expired, the government kept using her likeness, now as the face of a cabinet minister. So Bisha sued and her lawsuit accused the prime minister’s office and AKSHI of illegally continuing to use her identity and demanded that the state stop using her face.
Journalist Emirjon Senja put it more bluntly. Diella, he told IT Logs, started as an anti-corruption project because, as the prime minister liked to say, she had no relatives.“After losing legitimacy, Diella is now also losing her face.” Senja says.
Government spokespeople dismissed the case, blasting it as nonsense. But legally and politically, Diella was unraveling. She was now a compromised algorithm with a disputed face, run by an agency under criminal investigation. If this was the future of governance, it looked suspiciously like the dark past the country is still recovering from.
Diella was meant to show Europe that Albania was ready for the future. Instead, she showed how fragile digital governance becomes when it is built on unreformed institutions. In this sense, technology did not eliminate corruption, and it merely gave it a user interface. Through Diella, Albania tried to automate trust out of the Albanian people instead of building it.
In the end, the sun that was supposed to shine on Albanian governance faded into the same old Balkan twilight, where even the most advanced machines simply cannot escape the gravity of corrupted systems, no matter how much they are (or aren’t) willing to try.
Across the region…
Croatian startups are on a roll! After last week’s news about Daytona’s $24 million investment, Croatia-based B2B SaaS Farseer announced a $7.2 million Series A led by AYMO Ventures, with existing investor SQ Capital reinvesting. Described as “Excel on steroids”, Farseer’s platform automates up to 90% of manual tasks in financial planning and analysis for mid-market and enterprise clients, replacing spreadsheets where they fall short

Matija Nakic, Farseer’s CEO and cofounder
Serbian deep tech startup Cloud City has joined NVIDIA Inception, the company’s global AI program, where it will work on solutions for autonomous cities. The move follows a series of partnerships with tech leaders including Google and Microsoft, cementing Cloud City’s position as one of the most advanced smart-environment companies in Southeast Europe.
There’s a new Greek VC fund on the block - Skybound Venture Capital, positioning itself as an early-stage backer of bold technology founders. The firm focuses on pre-seed and seed rounds, writing initial checks of €500K to €2 million, with up to €2 million more reserved for follow-on investments as startups scale, aiming to support companies from their first round through to category leadership.

Bulgarian drone company Dronamics has launched a defense platform based on its Black Swan long-range cargo UAV, marking its first dedicated military offering. The system is designed to provide persistent airborne surveillance and targeting across European airspace, supporting national security, border control and civil protection missions.
Regional angel investment network Zephyr Angels has backed KALLIQ, a SaaS platform focused on outbound sales for small and mid-sized teams. The investment is intended to support further product development, strengthen the company’s go-to-market strategy and accelerate its early commercial rollout.
Rumor has it…
Industry chatter suggests that Serbia’s and N. Macedonia’s IT sector may be heading into a rough patch, with whispers of stalled projects, quiet layoffs and hiring freezes spreading across the market. Sources say foreign clients are pulling back and replacing outsourced development with AI tools or cheaper outsourcing destinations like Vietnam or Phillipines, leaving many local teams suddenly idle.
The Ecosystem take…

Igor Madzov, founder at NEST and Startup Macedonia
IT Logs: Are we actually building a real startup ecosystem - or just running a lot of programs?
Igor Madzov: After ten years of building Startup Macedonia - running programs, shaping initiatives, advocating policy reform, activating angels, and building international bridges - one thing is clear: ecosystems are not built by events or delegation photos. They are built through structure, capital discipline, and trust that compounds.
The first decade was about activation, about proving startups exist and collaboration is possible. The next phase must be about maturity, which means capital depth, governance strength, and measurable outcomes.
The ecosystem today is far more active than it was ten years ago, with initiatives like Founder Games, Startup Revolution, new EDIHs, emerging tech parks, and corporations entering innovation. That density matters, and all of this signals we are moving from awareness to coordination..
What actually needs to happen for N. Macedonia to produce real exits and global winners?
We already have proof points. Startups with strong Macedonian DNA like NativeTeams, Cognism, Inplayer, EmbedSocial, Konceptiva, Pathkeeper Surgical, Airport Briefing, Pixyle and what I am more proud of are fast-growing companies driven by young founders like Heyreach, Tolt, Hylosense, Factum, Dina AI demonstrate that globally competitive products can be built from here.
Today, N. Macedonia has over 250 active startups. More than 400 founders have been directly supported through Startup Macedonia programs, and over €30M in funding has been facilitated into the ecosystem through NEST. The question is no longer whether we can build, but whether we can scale systematically and multiply these successes.
Why are founders still struggling if the ecosystem is “more developed” than ever?
Founder reality must also be acknowledged, and building tech from N. Macedonia is not romantic. What ecosystems ultimately need is liquidity and scale. More startups without exits create noise and more funding without returns creates illusion. Exits change psychology as they create reinvesting angels, experienced second-time founders, attract serious funds, and shift national confidence.
We are roughly five years behind some SEE peers and more than a decade behind mature European ecosystems. Catching up requires structure, not optimism: a pipeline of 300 validated ideas per year, 100 incorporated companies, 30 properly accelerated, and at least 10 structured pre-seed investments.
Upcoming events in the region…
The WeAreDevelopers World Congress annually brings together nearly 15,000 developers from across Europe and beyond, in what many consider the continent’s largest developer event. Over three days, on a main stage and eleven additional ones, speakers from tech giants such as NVIDIA, GitHub, Amazon, Atlassian and OpenAI share insights into how AI, cloud infrastructure and developer platforms are reshaping the way software is built, deployed and scaled across the global tech industry.

Naida Vikalo, COO of WeAreDevelopers
“Our main expectation is to empower the tech community to grow personally and professionally - not just professionally. This is even more important in the AI era because collaboration is key. Instead of building only individual skills, people need to work together on solutions.”
Money Motion 2026 - March 11-12, Zagreb
Adriatics Tech Summit 2026 - March 30 - April 1, Sarajevo
SaaStanak 2026 - May 25-27, Sibenik




