Denmark to catch up in the AI race in software development – New project aims to turn the tide

Denmark risks losing ground in the global AI race. Even though generative artificial intelligence (AI) has the potential to boost software productivity by up to 43%, recent figures in market reports show that only 48% of Danish software companies are considering integrating the technology.

A new nationwide research initiative intends to change that.

With nearly DKK 20 million in funding from Innovation Fund Denmark and a total budget of DKK 30.4 million, the project AI4SE1DK (Human-Centred Adoption of Artificial Intelligence for Software Engineering in Denmark) aims to ensure that Denmark not only keeps up – but takes the lead – in the development and application of responsible AI in software development by 2029.

Human-centred AI refers to technologies that are designed with a deep understanding of human needs, behaviour, and context. In practice, this means AI tools that are not only effective but also understandable, transparent, respectful of user autonomy, and aligned with societal values.

AI4SE1DK builds on Danish business practices characterised by flat hierarchies and high trust, team cultures that emphasise collaboration and knowledge sharing, and ideals such as equality, transparency, and social responsibility – developing solutions where human use and ethics are central values in software development processes and tool support.

“Denmark should not merely adopt AI – we must shape how it is adopted responsibly,” says Project Leader and Professor Mikkel Baun Kjærgaard from the University of Southern Denmark.

“That’s why we’re developing human-centred solutions that boost productivity while respecting the people who use them.”

Trust and adaptability at the core of AI solutions

The project focuses on three key objectives:

• Closing the adoption gap, making AI usable across the software sector – including small and medium-sized enterprises.
• Strengthening ethical foundations and critical confidence in AI for development of critical systems.
• Engaging 10% of the Danish software sector in project outcomes – targeting more than 10,000 developers and decision-makers.

Companies such as Systematic, Umbraco, Ericsson, DCR Solutions, Software Improvement Group, European Spallation Source (ESS), and Unik System Design A/S are already on board. Collaborating with seven educational and research institutions, they will test and develop solutions in four concrete use cases – ranging from no-code platforms to AI agents in critical software development.

“We are laying the groundwork for a paradigm shift in how Denmark adopts advanced AI,” says Daniel Russo, Scientific Project Manager and Associate Professor at Aalborg University.

“It’s not just about technology – it’s about people, trust, and society.”

Denmark as a global role model for responsible AI

The aim is to improve efficiency and develop a best practice model for responsible AI integration in software development that can inspire others worldwide. The results are expected to have a significant impact on the labour market and exports of the software sector, and the country’s role in the digital economy of the future.

“AI is set to fundamentally transform software development – but only if we equip tomorrow’s developers with the skills to use it responsibly and effectively. This goes beyond technical proficiency. AI must not become a black box in development; it demands a solid understanding of ethics, transparency, and the operational context,” says Thomas Jesper Hansen, CTO at Systematic A/S.

“As a company delivering software to critical sectors like healthcare, national security and defence, we’re pleased to contribute to a project that fosters both innovation and integrity in the future of software engineering.”

The project also contributes to the UN’s Sustainable Development Goals to a strong focus on decent work – making it a strong Danish response to how ethics and AI can go hand in hand.

Fact Box

Project facts – AI4SE1DK
Title: Human-Centred Adoption of Artificial Intelligence for Software Engineering in Denmark
Funding: DKK 19.9 million from Innovation Fund Denmark
Total budget: DKK 30.4 million
Duration: 2024–2029
Partners: Universities: University of Southern Denmark, Aalborg University, The Alexandra Institute and four other educational and research institutions
Companies: Systematic, Umbraco, Ericsson, DCR Solutions, Software Improvement Group, European Spallation Source (ESS), Unik System Design A/S
Focus areas: No-code platforms, AI agents, human-centred design, ethics, and transparency in software development
Target: Engage more than 10,000 developers and decision-makers in Denmark

For further information:

Mikkel Baun Kjærgaard
Project Leader, University of Southern Denmark
📞 +45 21 97 24 47 | ✉️ mbkj@mmmi.sdu.dk

Daniel Russo
Scientific Director, Aalborg University
📞 +45 99 40 77 65 | ✉️ daniel.russo@cs.aau.dk