AI's Potential in Kazakhstan: Navigating Challenges and Solutions

Published Date : 12/01/2025 

Artificial intelligence (AI) holds significant potential to enhance Kazakhstan's global competitiveness and drive innovation, but the country faces challenges like limited access to essential technology and a lack of clear regulatory frameworks. 

ASTANA – Artificial intelligence (AI) has the potential to significantly boost Kazakhstan’s efficiency, innovation, and global competitiveness.

However, the journey to AI prosperity is not without its challenges, particularly in terms of limited access to microchip technology and ambiguous regulatory frameworks.

Kazakhstan, like many developing nations, faces significant hurdles in accessing the technology that supports AI growth.

Vladimir Kuryatov, an expert on the topic, notes, “We do not have our own microelectronics, production of semiconductors, or chips with high-bandwidth memory – something that is critical for the development of this sphere.

Exports of AI-related technologies have been strictly controlled, which is understandable given the geopolitical tensions and the strategic importance of technological development.”

The uneven distribution of AI capabilities is a global issue.

United Nations Secretary-General António Guterres highlighted this during his visit to China in September 2024, saying, “Today, AI capabilities are concentrated in a handful of powerful companies in a few countries.

Many nations face serious challenges in accessing AI tools.

International cooperation and solidarity are needed to truly harness its potential.”

Tight regulatory scrutiny of AI technology can place developing countries in a disadvantageous position.

Madina Abdrakhmanova, deputy director of product and external affairs and a senior data scientist at the Institute of Smart Systems and Artificial Intelligence (ISSAI) at Nazarbayev University, expresses concern about this “As a developer, I am worried about the excessive regulation of certain equipment needed for AI.

Kazakhstan, along with many other states, must get additional authorization to obtain specific chips.

This creates inequality.

For instance, Elon Musk, an American entrepreneur, had no issues purchasing 100,000 graphics cards!”

Artem Rychko, head of data processing at 7Generation, echoes these concerns, emphasizing the importance of access to computing power in advancing AI development.

“One solution is to purchase ready-made servers, which can cost millions of dollars.

However, even with the funds, the issue remains due to the high demand and the monopoly held by companies like Nvidia for such equipment,” he explains.

Rychko also mentions the additional geopolitical factor affecting Kazakhstan “Because of the current geopolitical situation, Nvidia has extended restrictions on exporting computing power to us.

But the government is working on this; the Kazakh Ministry of Digital Development, Innovation, and Aerospace Industry is leading negotiations for a U.S.

export license to supply Nvidia chips to Kazakhstan.”

Yekaterina Smyshlyayeva, a deputy of the Mazhilis (the lower house of the Kazakh Parliament), points out the need for a balanced regulatory framework.

“Digital law has its own peculiarities.

Technology always leads, and regulations follow.

Initially, only ethical codes and agreements were introduced, with the EU leading the way by adopting the first global regulatory act and the ChatGPT standard for personal data protection.

However, there are still no unified international regulations,” she explains.

Smyshlyayeva also underscores the importance of legal regulation from both a safety and investment perspective “No country wants to lose the technological race.

Signing international acts that restrict us, even on ethical grounds, can limit our technological development.

However, legal regulation is crucial for ensuring the safe use of AI and attracting global investment.”

Another challenge is the readiness of certain sectors to implement AI technologies.

“Many AI-driven solutions in Kazakhstan are on hold because sectors like healthcare are not yet prepared to implement these technologies without proper legal regulation.

Most of these projects are in ‘pilot mode.’ While businesses can afford to use AI, the state system, especially in high-risk areas, cannot.

We hope that with the help of the expert community, we will create a comfortable law that allows technology to develop, ensures safety, and outlines clear and precise rules of the game,” Smyshlyayeva concludes. 

Frequently Asked Questions (FAQS):

Q: What are the main challenges Kazakhstan faces in developing AI technology?

A: Kazakhstan faces challenges such as limited access to essential microchip technology, strict export controls, and the need for a balanced regulatory framework to ensure safety and attract investment.

Q: How does international cooperation play a role in AI development for Kazakhstan?

A: International cooperation is crucial for Kazakhstan to gain access to AI tools and technology. It also helps in creating unified regulatory standards that can support the safe and ethical use of AI.

Q: What is the current status of negotiations for obtaining Nvidia chips in Kazakhstan?

A: The Kazakh Ministry of Digital Development, Innovation, and Aerospace Industry is leading negotiations for a U.S. export license to supply Nvidia chips to Kazakhstan. The government has stated that the request for computing power is transparent and has no hidden agendas.

Q: Why is a balanced regulatory framework important for AI in Kazakhstan?

A: A balanced regulatory framework is essential to address misinformation and national security concerns while also being attractive to investors. It ensures the safe implementation of AI and promotes technological development.

Q: What sectors in Kazakhstan are most affected by the lack of AI regulation?

A: Sectors like healthcare are particularly affected as they are considered high-risk areas and require stringent legal regulations before implementing AI-driven solutions. Many AI projects in these sectors are currently in ‘pilot mode.’ 

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