Artificial Intelligence (AI) is no longer a futuristic concept; it’s a global force reshaping industries, economies, and daily life. From optimizing complex systems to personalizing user experiences, AI’s potential is undeniable. Like many nations, Nepal is awakening to this transformative power and grappling with how best to harness it for national development while mitigating potential risks. The recent unveiling of the draft National Artificial Intelligence (AI) Policy 2081 (corresponding to 2025 AD) signals a significant step in this direction. But is this initial stride enough? This post delves into the current state of AI policy in Nepal. Similarly, identifies crucial missing pieces. Also, explores the necessary next steps to build a robust and beneficial AI ecosystem for the nation, and also speaks about Nepal’s AI policy.
The Current Landscape: Nepal’s Initial Steps into AI Governance
Nepal’s journey towards formal AI governance isn’t starting from scratch. The Digital Nepal Framework 2076 (2019 AD) laid some groundwork, emphasizing AI, big data, and cloud computing. It worked as a key technological pillar for the nation’s digital transformation. Building on this, the draft National AI Policy 2081, released for public consultation by the Ministry of Communications and Information Technology (MoCIT) in early 2025, marks a dedicated effort to create a strategic framework for AI.
Key Highlights of the Draft Policy:
- Visionary Goals: The policy sets a vision for AI-driven digital transformation, aiming to integrate AI into key economic and social sectors like agriculture, healthcare, tourism, education, and governance to boost productivity and align with national development goals.
- Institutional Framework: It proposes creating new bodies to guide and regulate AI:
- National AI Center: To serve as the primary regulatory body overseeing AI growth, usage, and research.
- AI Regulation Council: Headed by the MoCIT Minister, focusing on ethical oversight, ensuring AI benefits society while respecting human rights and privacy, and aligning with international standards.
- AI Excellence Centers: To be established in universities and research institutions at national and provincial levels to foster R&D, focusing on ethical data handling and priority sectors.
- Infrastructure and Ethics: The policy acknowledges the need for expanding digital infrastructure (like 5G, fiber optics, data centers, cloud services) and places a strong emphasis on ethical AI development and regulation.
While government-led initiatives are nascent, Nepal’s private sector shows glimpses of AI adoption. Startups like Fuse machines Nepal and Paaila Technology are working on AI-driven solutions in areas like chatbots, automation, and data analytics, particularly in finance, e-commerce, and potentially healthcare. However, this growth remains somewhat limited, often happening in pockets rather than as part of a coordinated national strategy.
Identifying the Gaps: What’s Missing in Nepal’s AI Policy Strategy?
Despite the commendable intentions laid out in the draft policy, several critical gaps and challenges need addressing for Nepal to effectively leverage AI.
1. The Implementation Chasm:
The draft policy outlines ambitious goals but according to analysis, lacks a concrete roadmap. Crucial details regarding responsible agencies, specific funding mechanisms, timelines, and measurable outcomes are missing. Without these, there’s a significant risk of the policy remaining largely aspirational, confined to paper rather than practice.
2. Foundational Weaknesses: Infrastructure & Data:
AI thrives on data and robust infrastructure. Nepal faces significant hurdles here:
- Infrastructure Deficit: Limited high-speed internet penetration, unreliable electricity supply, and inadequate access to advanced computing power and data centers severely restrict AI development and deployment.
- Data Governance: While the policy mentions data, it needs more explicit policies on data governance, including data quality standards, cleansing, security protocols, privacy protection, and clear regulations for cross-border data sharing.
3. The R&D and Skills Deficit:
Meaningful AI development requires strong research capabilities and a skilled workforce.
- Underfunded R&D: Nepal invests less than 1% of its GDP in research and development, leaving institutions under-resourced. The draft policy encourages university collaboration and research centers, but without a clear financing strategy for AI labs and R&D hubs, Nepal may remain dependent on foreign technology.
- Talent Gap & Awareness: There’s a recognized shortage of AI professionals and low AI literacy among the broader population. Building a skilled workforce through dedicated educational programs and raising public awareness are critical yet underdeveloped areas.
4. Regulatory Vagueness and Ethical Implementation:
While the draft mentions ethics and proposes a council, the governance section needs more teeth. Clearer guidelines are needed on transparency, accountability, bias mitigation, cybersecurity standards, data privacy enforcement (beyond just confidentiality, integrity, availability), and preventing misuse for surveillance or disinformation. The policy needs a well-defined, applicable definition of AI and a comprehensive glossary.
5. Stimulating the Ecosystem:
The policy mentions public-private partnerships (PPPs) but lacks concrete details on incentives to encourage private sector investment and AI entrepreneurship. Tax breaks, startup grants, venture capital matching schemes, and dedicated innovation hubs are needed to catalyze the ecosystem, like approaches in countries like India or Singapore.
6. Localization Lag:
For AI to be truly inclusive and effective across Nepal, solutions need to be developed and adapted for Nepali and other regional languages and contexts.
Charting the Path Forward: What’s Next for Nepal’s AI Policy?
Addressing these gaps requires a concerted and strategic effort. The following steps are crucial for Nepal’s AI journey:
1. Finalize and Operationalize the Policy:
Incorporate stakeholder feedback (including recommendations from bodies like the CAN Federation) into the draft policy. Most importantly, translate the finalized policy into a clear, actionable, and funded implementation plan with defined roles, responsibilities, and timelines.
2. Build the Bedrock Infrastructure First:
Prioritize substantial investment in core digital infrastructure: reliable power, nationwide high-speed internet, and secure, state-of-the-art data centers and cloud capabilities. This is non-negotiable for any serious AI ambition.
3. Invest in People and Ideas:
Dramatically increase funding for AI research and development. Establish and adequately resource the proposed AI Excellence Centers. Integrate AI into university curricula, offer scholarships, and launch nationwide AI literacy and upskilling programs.
4. Develop Robust Legal & Ethical Guardrails:
Craft clear, specific, and enforceable regulations covering data protection, cybersecurity, ethical AI principles (fairness, transparency, accountability), and responsible AI use. Ensure these legal frameworks protect citizens’ rights while fostering innovation.
5. Catalyze Collaboration and Investment:
Design and implement attractive incentives for private sector AI development, startups, and PPPs. Foster a collaborative environment between government, academia, industry, and civil society. Explore strategic international partnerships, potentially learning from models like the Singapore-Rwanda AI Playbook for resource pooling.
6. Prioritize Localization and Sectoral Impact:
Actively support the development of AI tools tailored to Nepal’s linguistic and cultural diversity. Continue focusing AI applications on key sectors (agriculture, health, education, disaster management) where they can deliver maximum societal and economic benefits.
Artificial Intelligence holds immense potential to accelerate Nepal’s development, enhance public services, and create new economic opportunities. The draft National AI Policy 2081 is a vital first step, signaling the government’s commitment. However, a policy document alone is insufficient.
Real work lies ahead: bridging the gap between ambition and action. This requires moving beyond broad statements to concrete implementation plans. Additionally, securing dedicated funding, building foundational infrastructure, nurturing local talent, establishing clear ethical and legal frameworks, and fostering a vibrant ecosystem through collaboration and smart incentives. By addressing the missing pieces and strategically charting the next steps, Nepal can harness the power of AI. It can harness not just to keep pace with the world, but to build a more prosperous and inclusive future. Also, it can harness a resilient future for all its citizens. The journey requires a collective effort, and the government should unite the industry, academia, and the public. It should unite towards a shared vision of responsible and impactful AI development.