Why Armenia Has Become a Key AI and R&D Hub for PMI - Interview with Ivan Miletic

Tert.am spoke with Ivan Miletic, Vice President, Corporate Affairs at Philip Morris International (PMI), to understand Armenia’s role in the company’s global strategy and why it has emerged as a growing hub for technological development.

In the interview, Miletic discusses PMI’s R&D center in Armenia, which has been operating since 2018 and has evolved into one of the company’s key hubs, particularly in the field of artificial intelligence (AI). He also highlights PMI’s strategic transition from combustible products to smoke-free alternatives, where data, science, and innovation play a critical role.

-You oversee corporate affairs across a very diverse region. What makes Armenia strategically important within PMI’s South & Southeast Europe, CIS, and MEA portfolio?

-For us, Armenia is very unique. It is a small market compared to larger markets in terms of revenue, so in that sense it may not seem very special. However, when you look at the R&D in Armenia - referring to our research and development center, which has been operating since 2018, where local teams work on building and improving technologies - as well as the country’s technological capabilities and its history in the tech space, it becomes very interesting.

Armenia is positioned as a very unique place in the PMI ecosystem. The R&D center has now grown into something quite sizeable, employing a number of people who are doing amazing work. They have always kept up with the times, and today Armenia is one of our global hubs for AI.

What Armenian experts are doing is focusing on improving our internal processes through AI. They are not only working for the Armenian market, but are also helping PMI globally to improve its AI capabilities. For us, Armenia is a very interesting playground when it comes to discovering innovative ideas and strong expertise in fields where PMI has not traditionally been deeply involved.

-From your perspective, what concrete, measurable outcomes has the R&D center in Armenia delivered so far - for example in terms of specific technologies, or contributions to PMI’s smoke-free transformation?

-The R&D center is very interesting because local experts work on a number of different solutions that help us improve our products and operations. For PMI, as you know, the transition from combustible products to smoke-free products has been at the core of this transformation. Without data, proper science, and the right knowledge underpinning these products, we cannot drive this transformation further. That is why the work done by people in the R&D center in Armenia is so important for us.

-Artificial intelligence is increasingly shaping policymaking, regulation, and innovation across industries. How do you see AI supporting more informed, evidence‑based decisions in areas such as public health, regulation, and responsible innovation?

-For us as a company, AI is helping to improve a number of different aspects of our business, from planning to organizational processes and supply chain management. For us  AI growth is a cultural shift, not just a tech rollout. That is why we already have an AI-augmented system that helps with the initial legal and corporate review. It looks at the marketing materials, for example, and gives preliminary assessment on their compliance. As always with PMI, there is a human control and oversight after the initial assessment.

It can also help us better understand what is needed for good policy-making. One important thing we know is that when it comes to policy-making, one size does not fit all. You cannot apply outdated policies that were designed for traditional products to new and innovative technologies and products.

AI can help us chart trends, understand where innovation is going, and determine what policy solutions are needed in order to support those developments and build a better society.

Regarding decision-makers, AI is already being used. It helps with preparing briefings, finding information about counterparts, and understanding trends in different countries when it comes to policy. This will become more and more common going forward.

-Looking ahead, what do you see as the main factors that will shape the future relationship between global companies and governments in emerging and developing markets?

Technology will certainly play a major role. However, as technology progresses, it will be very important to focus on the human aspect. Technology can sometimes overlook that dimension, and that is why we, as people working in PMI, need to focus on empathy and on creating the best possible environment for people to work.

We are very proud of initiatives such as equal salary certifications and other efforts we have made as an employer. For us, it is extremely important to continue focusing on people.

Technology is powerful, but it is only as good as the human factor behind it. AI will not replace humans; it will help people become more effective professionals.

After all the new “currency” is not knowledge itself anymore, because knowledge can now be obtained through AI in seconds. What really matters is how you use it. I am personally a strong believer that experimentation & learning AI enhance your growth & productivity. I hope more businesses and regulators do as well.