Government Unveils AI Policy to Boost Economy

The government has unveiled its Artificial Intelligence (AI) Policy with the goal of developing AI manpower in Nepal over the next five years. The plan includes setting up AI Excellence Centers in all provinces and ensuring AI literacy for everyone, starting from students at the basic education level.

The government aims to maximize AI’s application in economic and social sectors, thereby increasing the contribution of information technology to the Gross Domestic Product (GDP) by an additional 1 percent. It also plans to position Nepal within the top 50 of the AI Readiness Index. To achieve these goals, the government will build an AI ecosystem with legal and institutional frameworks and supporting infrastructure. Priority will be given to study and research, human resource development, and the use of AI in agriculture, industry, and services to boost production and productivity.

The policy also focuses on promoting innovation and entrepreneurship to develop the AI industry. According to the new policy, AI applications will make public service delivery more automated, efficient, and cost-effective, while also minimizing potential negative impacts.

To manage this sector effectively, the government will introduce data security laws covering personal and institutional data ownership, exchange, privacy, and security. Existing laws will be amended to align with AI, and ethical values will be incorporated into standards for data, algorithms, and technologies.

The policy further emphasizes benchmarking, standardization, and certification of AI systems developed and deployed in Nepal to ensure their quality, safety, and reliability. A national AI index will be created, and measures will be developed to address challenges such as misuse of intellectual property, cybersecurity risks, and the spread of false information through AI.

To ensure effective implementation, a National AI Center will be established, along with AI Excellence Centers in universities, research bodies, and educational institutions for study, research, and development. The government also plans to set up a regulatory sandbox for the safe development and testing of AI systems.

The policy highlights the creation of advanced infrastructure linked with AI, including data centers and cloud infrastructure, high-performance computing, reliable electricity supply, and high-speed internet. A feasibility study will also be carried out to explore local production of AI-related hardware. In addition, the policy proposes establishing data centers in Nepal’s high mountain and Himalayan regions using green infrastructure.

AI incubation hubs will be set up to encourage startups and innovative enterprises, while a brain-gain program will be launched to utilize the AI expertise of Nepalis living abroad.

Expanding AI in Key Sectors

The policy outlines greater use of AI for agricultural modernization and commercialization. Planned applications include production and market forecasting of agricultural goods, soil monitoring, disease and pest prediction, data-driven farming systems, crop and disease monitoring, smart irrigation, pesticide management, livestock health monitoring, and digital marketplaces.

In health, AI will be promoted in diagnostic imaging, early disease detection, and genomic analysis. In the energy sector, AI will be applied to smart grids, smart switching, and smart meters for efficient production, transmission, and distribution. In transportation, AI will be used in traffic management, parking, surveillance, public transport, and logistics to reduce costs and time while improving road safety.

The policy also envisions AI use in tourism through destination selection, virtual tour guides, 3D modeling, and enhanced tourist safety. In the financial sector, AI will help strengthen institutional governance, combat financial crimes, and prevent money laundering. Additionally, AI-based automation and smart systems will be used in industries to increase production, productivity, and quality.