Digital Technologies - The Times Of Central Asia

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AI in Central Asia: Kazakhstan Unveils Multilingual GPT Model

Researchers at the Institute of Intelligent Systems and Artificial Intelligence (ISSAI) at Nazarbayev University in Astana have introduced ISSAI KAZ-LLM, a large language model (LLM) specifically designed for the Kazakh language. Built on advanced neural network technology, the model serves as the foundation for Kazakhstan’s version of a generative AI system similar to GPT. ISSAI KAZ-LLM is tailored to Kazakhstan’s multilingual and multicultural environment, supporting Kazakh, Russian, and English, with additional functionality for Turkish. The model addresses language barriers and advances the field of generative artificial intelligence for resource-limited languages. The development team processed and synthesized over 150 billion tokens to ensure high-performance language capabilities. Beyond creating an AI tool, the project also fostered local expertise, involving Kazakhstani researchers at every stage, from data preparation to model implementation. Collaboration with international institutes enabled the creation of language-specific datasets and comparative analysis tools, utilizing input from linguists and state-of-the-art machine translation techniques. KAZ-LLM has a wide range of applications, including Kazakh language translations, content generation, and bulk text processing. Training data was sourced exclusively from publicly available materials, such as Kazakh websites, news articles, and online libraries, supplemented by contributions from various organizations. ISSAI director, Prof. Hussain Atakan Varol, told The Times of Central Asia: “This model reflects Kazakhstan's commitment to innovation, self-reliance, and the growth of its technology ecosystem. Our team developed two versions of ISSAI KAZ-LLM: one with 8 billion parameters and another with 70 billion parameters. Both are built on the Meta Llama architecture, optimized for use on high-performance systems as well as resource-constrained environments. Released under a CC-BY-NC license, the models are available for non-commercial use on the Hugging Face platform.” The ISSAI team is already exploring next-generation AI systems, including language-vision models, while expanding support for additional Turkic and regional languages. These initiatives aim to strengthen regional ties, promote linguistic integration, and create substantial economic and technological opportunities in Kazakhstan and beyond. Remarkably, this groundbreaking development was accomplished without government funding, with significant contributions from Kazakhstani IT companies. Kazakhstan is also gearing up to launch the International Center for Artificial Intelligence alem.ai. The center is set to become a hub for transforming the country into an AI-driven economy, fostering innovation, attracting investments, and supporting startups. By 2029, the export of Kazakhstani AI solutions is expected to reach $5 billion.

Digital Technologies Court Cases Cryptocurrency Crime Legislation Finance

Uzbek Teenager Illegally Earned Over $2.5 Million Through Cryptocurrency

A 17-year-old boy has been detained in the Zhondor district of Uzbekistan’s Bukhara region for allegedly conducting illegal cryptocurrency transactions. Authorities claim the teenager engaged in the acquisition, transfer, and exchange of crypto-assets without obtaining the required licenses. Over the course of his activities, he reportedly amassed approximately 34 billion UZS (around $2.6 million). Law enforcement officials have filed a criminal case against the teenager under Article 278-8, Part 3, of Uzbekistan’s Criminal Code. This article addresses violations of laws regulating cryptocurrency transactions. Authorities have seized all of the funds the teenager earned through his alleged activities. A preliminary investigation is ongoing to determine the full extent of the violations and uncover any additional details surrounding the case. Cryptocurrency transactions in Uzbekistan are tightly regulated, with severe penalties for non-compliance. Under the law: Purchasing, selling, or exchanging crypto-assets without a license is punishable by administrative arrest of up to 15 days or a fine of 20–30 Basic Calculation Units (BCUs). Confiscation of both crypto-assets and associated funds is also mandatory. If an individual continues illegal activities after receiving an administrative penalty, they may face criminal charges, including imprisonment of up to 5 years. Unauthorized cryptocurrency mining can result in administrative arrest of up to 5 days or fines ranging from 20 to 30 BCUs. For reference, one BCU currently equates to 330,000 UZS (about $25). To conduct cryptocurrency operations legally in Uzbekistan, individuals and businesses must use licensed service providers. Licensed entities ensure compliance with the country’s strict regulatory framework, minimizing risks for participants in the crypto market.

AI Digital Technologies Digitalization Science

Uzbekistan Sets Sights on $1.5 Billion AI Industry by 2030

Uzbekistan’s Permanent Mission to the United Nations has hosted a presentation at the UN headquarters in New York, unveiling the country’s strategy for developing artificial intelligence (AI) technologies by 2030. The event, organized in collaboration with the UN Counter-Terrorism Office and Interpol, drew attendance from UN officials, experts, and members of the diplomatic corps accredited in New York. Ambitious AI Goals Participants were introduced to the key directions outlined in Uzbekistan’s AI Strategy, along with the country’s ongoing reforms and achievements in the field. Emphasis was placed on President Shavkat Mirziyoyev’s commitment to advancing information technologies and fostering innovation. The presentation highlighted Uzbekistan’s plans to grow its AI-based software products and services sector to $1.5 billion by 2030. This strategy also includes establishing ten scientific laboratories specializing in AI and strengthening the regulatory framework to support technological advancements. Leadership in Responsible AI As previously reported by The Times of Central Asia, Uzbekistan leads Central Asia in responsibly adopting AI, according to the Global Center on AI Governance. The nation’s AI initiatives prioritize cultural and linguistic diversity, foster international partnerships, enhance public sector skills, and promote transparency.

Legislation Government Digitalization Digital Technologies Digital Service Digitization

Kazakhstan Tops Central Asia in Global E-Governance Rankings

Kazakhstan has risen to 24th place out of 193 countries in the 2024 UN E-Government Development Index, up from 28th in 2022. This achievement reaffirms Kazakhstan’s position as the regional leader in e-governance, surpassing its Central Asian neighbors. Globally, Denmark, Estonia, and Singapore secured the top three spots. Legislative Advances in Digital Transformation To further bolster its digital transformation, President Kassym-Jomart Tokayev signed a landmark law on July 5, focusing on digitizing statistics and improving data management systems. This legislation is set to reduce statistical reporting requirements by 40-50% through amendments to various laws concerning state control, statistics, and data management. Regional Comparisons Other Central Asian countries also demonstrated progress in e-governance, albeit at different rates: • Uzbekistan rose to 63rd place from 69th, exceeding the 2025 targets outlined in its “Digital Uzbekistan 2030” strategy, according to Minister of Digital Technologies Sherzod Shermatov. • Kyrgyzstan improved to 78th place from 81st. • Tajikistan made significant strides, climbing from 141st to 123rd place. • Turkmenistan, however, experienced a decline, dropping to 145th place from 137th in 2022.

Education Digitization Digital Service Digital Technologies Science Digitalization

Kazakhstan’s Evolving IT Sector and the Rise of AI

Kazakhstan is witnessing a surge in IT talent as specialists from Ukraine, Russia, and Belarus flock to the country. While this has intensified competition for local professionals, many Kazakh IT specialists are also seeking opportunities abroad. To better understand the current landscape, The Times of Central Asia spoke with Mazhit Berniyazov, founder of the travel startup Mego.tours, about the development of Kazakhstan’s IT industry. TCA: How long have you been working in IT, and how in-demand is this sector in Kazakhstan? Mazhit Berniyazov: My 16 years of experience in IT and related fields has given me a front-row seat to the sector's rapid development and transformation. I’ve worked in both dynamic startups and large companies, experiencing the benefits and challenges of each. Globally, IT is one of the most sought-after sectors, and its popularity continues to grow. In Kazakhstan, the demand for IT professionals has surged in recent years, driven by several factors. First, IT offers a wide range of career paths, making it appealing to people with diverse skills and interests—whether it’s software development, web design, cybersecurity, or data analytics. Second, training opportunities have expanded significantly, with numerous online courses, schools, and academies offering accessible and high-quality education, often bypassing the need for traditional higher education. Third, the IT industry’s dynamic and ever-evolving nature ensures constant demand for skilled professionals, adding to its appeal. The COVID-19 pandemic has also transformed the IT market. The rise of hybrid work models—combining remote and in-office work—has given professionals greater flexibility and freedom. This shift has broadened hiring pools, enabling Kazakh companies to recruit international talent, which, in turn, has heightened competition in the local labor market. TCA: What steps are needed to further develop Kazakhstan’s IT industry? Mazhit Berniyazov: Over the past two years, Kazakhstan has seen a significant influx of IT professionals from Russia, Belarus, and Ukraine. While many bring high levels of expertise, this migration has intensified competition for local specialists. Additionally, some migrant professionals accept lower salaries due to their circumstances, creating further challenges for Kazakh IT workers. This influx has a dual impact: it raises the overall level of the IT industry in Kazakhstan while also pushing local specialists to enhance their skills and adapt to the evolving landscape. Government support is crucial for the growth of the IT sector, yet Kazakhstan still lacks a clear strategy for leveraging its potential, especially in areas like artificial intelligence (AI). While initiatives exist to support IT development, there is no comprehensive roadmap for AI integration or sufficiently effective programs to attract investment and nurture startups in this field. Globally, AI is advancing rapidly, transforming industries such as healthcare, finance, logistics, and marketing. However, Kazakhstan is still in the early stages of crafting a national AI strategy. Challenges include limited public investment, a shortage of qualified specialists, and the absence of a robust regulatory framework. To compete internationally, Kazakhstan must implement a targeted program for AI development, including: • Encouraging scientific research and innovation • Supporting education and training initiatives •...

Market economy Digital Service Digital Technologies Trade & Markets Trade

Kazakhstan Launches New Online Marketplace

A new domestic online marketplace, Teez, has commenced operations in Karaganda, the central city of Kazakhstan’s Karaganda region. The platform, offering next-day delivery, has opened pick-up points in 24 cities nationwide. On November 29, Kazakhstan’s Minister of Trade and Integration, Arman Shakkaliyev, visited the marketplace's main warehouse. Teez co-founder Linar Khusnullin informed the minister that the platform currently operates 40 pick-up points and plans to expand this network to 127. The marketplace offers 50,000 product types, and its customer application has already been downloaded by 170,000 users. The company’s warehouse spans 25,000 square meters, but by 2030, it aims to expand to a 120,000-square-meter facility. Teez aspires to become Kazakhstan’s leading e-commerce platform. Shakkaliyev highlighted the rapid growth of e-commerce in Kazakhstan, noting a 20% increase in electronic trade volume from January to October 2024 compared to the same period in 2023. He emphasized that Karaganda, with its central location and developed infrastructure, has the potential to become a vital trade and logistics hub not just for Kazakhstan but for the entire Central Asian region. The Times of Central Asia reported that in 2023, the volume of e-commerce in Kazakhstan exceeded 2.2 trillion KZT ($4.8 billion), accounting for 13% of all retail trade, a 0.5% increase from the previous year. The country aims to raise its share of e-commerce to 20% by 2030.