Digital Technologies - The Times Of Central Asia

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Finance

Digital Inequality in Central Asia: Who Is Winning the AI Race in Finance?

AI in Central Asia’s financial sector is no longer a fashionable add-on. It has become a dividing line between leaders and laggards. A comprehensive report by the National Bank of Kazakhstan and the Fintech AI Center highlights a stark reality: while some institutions are building sovereign data centers, others are still attempting to automate basic document management processes. Kazakhstan is setting the pace. In his introduction to the report, Timur Suleimenov, Governor of the National Bank of Kazakhstan, echoes President Tokayev’s digital modernization agenda, writing: “Artificial intelligence is rapidly becoming a new paradigm for the development of the national economy… Our country faces the task of not only avoiding being left on the periphery of the global technological trend, but also of using its potential to accelerate economic modernization.” The regional AI race in finance is effectively underway, and the findings reveal deep digital inequality. The Balance of Power: Leaders and Followers A review of AI implementation across the region shows a pronounced technological divide. Kazakhstan remains the undisputed leader. Its banking sector has moved beyond experimental pilot projects. According to the report, AI is most actively deployed in the development of new products (14% of financial institutions) and marketing (13%), where neural networks enable hyper-personalized offerings. A further 10% of institutions use AI in operational activities and compliance. Elsewhere in Central Asia, governments are developing ambitious strategies, but implementation in the financial sector remains limited. Kyrgyzstan plans to launch a National AI Platform under its Digital Transformation Concept for 2024-2028. However, most of the country’s banks remain at the pilot or early implementation stage. Current AI applications focus primarily on decision-making optimization and advertising materials rather than complex financial operations. Tajikistan has positioned itself prominently at the policy level. It adopted an AI Development Strategy through 2040, the region’s first long-term framework, and initiated a United Nations General Assembly resolution on AI for Central Asia in July 2025. Yet in practice, the country’s financial market is dominated by microfinance organizations (MFOs), which are cautious in adopting advanced technologies. Their AI use is largely confined to risk management and documentation, while automation, software development, and data processing lag behind. Only 7% of institutions apply AI in financial consulting and customer support. Uzbekistan has taken a different route, prioritizing international and regional partnerships. In October 2024, the government approved its AI Development Strategy through 2030. Rather than building infrastructure independently, Tashkent is partnering with global technology providers. The state is working with Huawei to develop physical AI infrastructure and deploy ready-made industry solutions. At the same time, Uzbekistan is strengthening its academic capacity, including investments in high-performance computing for Inha University in Tashkent. Regional integration is also central to its strategy: IT Park Uzbekistan has signed a memorandum with Kazakhstan’s Astana Hub to integrate startup ecosystems. This combination, collaboration with global vendors, academic investment, and regional partnerships, is enabling Uzbekistan to narrow its technological gap more quickly. People Instead of Servers Digital inequality is most evident in spending priorities. Investment structures...

Smart Cities

Ten Years On, Kazakhstan’s Digital Experiment Moves Closer to Citizens

On a snowy afternoon in Taldykorgan, a group of university students reacts with excitement at the mention of the words “smart city.” “Finally!” one of them says, but they struggle to define what it actually means. Artificial intelligence? Cameras? Faster internet? It doesn’t really matter. For them, the concept signals something simple: progress. That expectation has accompanied Kazakhstan’s digital strategy for nearly a decade. When the government adopted the “Digital Kazakhstan” program in 2017, the goal was to modernize public administration and infrastructure through data. Astana and Almaty were the first testing grounds. But the real challenge began elsewhere. To scale the model nationally, authorities turned to medium-sized towns and small urban centers, places where infrastructure gaps were sometimes more visible than innovation. In some regions, electricity supply remains unstable. In others, sidewalks, heating networks, or waste management systems require urgent upgrades. Aqkol: The Laboratory Aqkol, a town of around 13,000-14,000 residents located 100 kilometers north of Astana, became the country’s first official pilot in 2018. The project, developed in partnership with Kazakhtelecom JSC, Tengri Lab, and the Eurasian Group, aimed to create a “conceptual model” of an intelligent city. Around 3,000 sensors and 150 cameras were installed to monitor everything from traffic flows to air quality. In theory, Aqkol became a data-driven microcosm. In practice, the transformation was uneven. [caption id="attachment_43867" align="aligncenter" width="2560"] During winter, some residents of Aqkol contend with poor street lighting and snow-covered roads; image: TCA, Manon Madec.[/caption] At first glance, Aqkol does not immediately appear transformed. On the main avenue, two heated bus stops operate through the winter. Nearby, smart benches equipped with Wi-Fi and charging ports stand mostly unused. A seventy-year-old resident waiting for his bus acknowledges that “the city has become more comfortable.” [caption id="attachment_43864" align="aligncenter" width="2560"] In Aqkol, residents are waiting for more “smart” bus stops; image: TCA, Manon Madec.[/caption] Yet a few streets away, there are no sidewalks and limited street lighting. “Children walk home from school in the dark,” says Nadejda, a resident in her thirties. Zeinolla, a taxi driver native from Aqkol, questions whether the investment reached the entire town. To understand the project, one has to step inside the Smart Aqkol control room. In a small office, screens display live environmental and security data. Air quality is measured every ten minutes. During winter evenings, coal-burning households generate visible emission peaks on the graphs. “With these systems, we see exactly when pollution increases,” explains Asylbek Baiboranov, deputy director of the Smart Akmola regional program. “We can identify patterns and respond faster.” On one of the large LED screens, a woman’s portrait appears alongside a live video feed of her entering what looks like a post office. The system matches faces in real time. “The surveillance cameras are equipped with facial recognition technology,” Baiboranov explains. Since their installation, recorded offences have fallen by roughly 20%, according to him. Taldykorgan: more security, more environmental considerations Taldykorgan already has an extensive camera network. Ameer, a student, supports further expansion. A smart city,...

Investments

Kazakhstan’s MOST Ventures Invests in Uzbek Startup Bito, Valuing Company at $10 Million

Kazakhstan-based venture capital firm MOST Ventures has acquired a stake in Uzbekistan’s Bito, marking a significant cross-border investment in Central Asia’s growing tech ecosystem. The deal, completed in Tashkent on December 25 as part of a Bridge funding round, values the B2B software company at $10 million, a milestone that reflects rising investor confidence in Uzbekistan’s startup landscape. Bito is a business-to-business software-as-a-service (SaaS) company and a resident of Startup Garage, a leading Central Asian venture studio and accelerator. The company offers a digital ecosystem that integrates enterprise resource planning (ERP), financial technology, and artificial intelligence into a unified operating system tailored for small and medium-sized enterprises (SMEs). Its platform allows businesses to manage sales, finance, inventory, HR, payments, installment services, and analytics, all in one interface aimed at improving operational transparency and decision-making. The Bridge round represents a pivotal moment in Bito’s growth trajectory. The company reported that its valuation has tripled over the past ten months, though it has not disclosed the total amount raised. The investment will fund continued product development and regional expansion, with a primary focus on the Uzbek and Kazakh markets. As part of the transaction, Startup Garage partially exited its position in Bito. The accelerator played a crucial role in the company’s early-stage development, supporting product design, market entry, and initial scaling. Startup Garage founder Mukhammad Khalil said the deal highlights the increasing maturity of Central Asia’s startup ecosystem and its ability to attract institutional capital. “This transaction shows that companies in the region can secure funding based on strong fundamentals and sustainable growth,” he said. Bito founder Uchqun Tulavov called the investment a validation of the company’s strategic vision. “We are not simply building a product, we are setting a new standard for digital infrastructure for small and medium-sized businesses across the region,” he said. “The support of MOST Ventures confirms our direction as we integrate ERP, fintech, and AI into a unified operating platform.” Following the funding round, Bito plans to accelerate its regional footprint while consolidating its role as a leading B2B SaaS provider in Central Asia.

TCA Interviews

The Future of Kyrgyz Tech – Scaling Global Companies, Attracting Foreign Capital

In the second installment of our exclusive two-part interview, The Times of Central Asia continues its deep dive into Kyrgyzstan’s evolving tech landscape with Elena Nechaeva, Head of Communications at the High Technology Park of the Kyrgyz Republic (HTP). Last week, we explored the startups and entrepreneurs who are currently building and scaling global businesses. If you missed it, you can read the first part of the interview here. This week, we focus on policy reform, cross-border cooperation, investor outreach, and the path ahead for Kyrgyz entrepreneurs in an increasingly globally competitive market. [caption id="attachment_40428" align="aligncenter" width="1280"] Image: The High Technology Park, Kyrgyz Republic[/caption] TCA: In terms of regulation and policy, what improvements or reforms would you like to see to better support innovation? Elena Nechaeva: There are several policy improvements that could really accelerate innovation in Kyrgyzstan, and many tech leaders have been very open about them. One of the biggest needs is a clearer national strategy for startups. Now, it’s not fully defined who exactly drives startup development and what the government’s long-term role should be. A coordinated approach with clear ownership would help the ecosystem grow much faster. Another important area is venture legislation and a stronger legal framework. Founders and investors often mention the need for a proper venture law, elements of English common law, and better protection of intellectual property. These changes would make it far easier to attract long-term capital and for investors to feel confident working with local companies. There’s also a lot of focus on the importance of modernizing higher education and expanding international partnerships. Strong engineering programs and links between academia and industry are essential for deep-tech development. And finally, Kyrgyzstan needs policies that help retain and attract talent. The digital nomad visa is already showing positive results, but it can be expanded. TCA: How does the Kyrgyz Republic's tech ecosystem compare to others in Central Asia or the wider region? Nechaeva: If you look at the region by population size, Kyrgyzstan is much smaller - about 7 million people, compared to nearly 20 million in Kazakhstan and over 36 million in Uzbekistan. And yet, with a far smaller talent pool and fewer resources, the country already exports more than $130 million in IT services, almost entirely to global markets. Whilst Kyrgyzstan’s tech ecosystem is smaller than some of our neighbors, it is one of the fastest-growing. What makes it different is that it is being developed from the bottom up - driven by founders, engineers, and communities rather than large state programs. That’s why the ecosystem is very agile, open, with a real-world focus on exports. Another difference is the mindset: Kyrgyz startups grow with a “global from day one” approach. They don’t build for a domestic market - they build for the U.S., Europe, and the wider world from day one. That creates a very different culture and pushes teams to compete internationally right from the start. So, while our ecosystem is smaller in size, it’s fast, flexible, and...

Road Safety

Kazakhstan Proposes Digital Points System for Traffic Violations

Kazakhstan may introduce a digital points-based system to monitor and penalize traffic violations, enabling authorities to automatically identify repeat offenders, mandate retesting, and revoke driving licenses. The proposal was announced by Prosecutor General Berik Asylov during a recent meeting of the Law Enforcement Coordination Council. According to Asylov, noncompliance with traffic regulations remains a major cause of road accidents. He noted that 81% of those responsible for traffic accidents had previously been held accountable for multiple violations. For instance, in East Kazakhstan, one driver committed 32 infractions in a single year, including 13 speeding violations, before fatally crashing into oncoming traffic, killing himself and two passengers. A more striking case occurred in Almaty, where a driver with 72 violations over two years, including 30 for speeding, killed a pedestrian on August 30. To prevent such incidents, participants at the council meeting proposed the implementation of a digital points system that would automatically record repeat violations. Drivers who exceed a predetermined threshold would be required to retake their driving test. Chronic offenders would face temporary suspension of their driving privileges. Asylov also emphasized the need for stricter oversight in the issuance of driver’s licenses. “Cases of illegal acquisition of licenses will be considered a factor that increases the threat to society,” he stated. As previously reported by The Times of Central Asia, lawmakers have also proposed introducing mandatory psychological evaluations, dubbed the “idiot test”, for repeat offenders who systematically violate the same traffic rules.

Startups

How the Kyrgyz Republic’s High Technology Park is Quietly Building a Digital Powerhouse

In an exclusive two-part interview with The Times of Central Asia, Elena Nechaeva, Head of Communications at the High Technology Park of the Kyrgyz Republic (HTP), offers a rare and detailed look into one of Central Asia’s most underreported digital ecosystems. While much attention has been given to the tech potential of Uzbekistan and Kazakhstan, Kyrgyzstan is quietly and deliberately attempting to build a globally connected digital economy, and, in recent years, it has gone from strength to strength. With deepening links to Silicon Valley and a new generation of ambitious startups and entrepreneurs, the country’s tech talent is emerging as some of the most competitive in the region. In this special series, The Times of Central Asia reveals the start-ups, entrepreneurs, and trends shaping Kyrgyzstan’s regional innovation space and why international investors should start paying attention. TCA: Can you briefly describe the mission and strategic goals of the High Technology Park (HTP)? Elena Nechaeva: The High Technology Park of the Kyrgyz Republic is built on a simple belief: the internet is our ocean. For a landlocked country, digital technologies open limitless space, a borderless world where geography no longer defines opportunity. The High Technology Park was created to help Kyrgyz companies export their talent and products and integrate into the wider global technology economy. As a government-backed organization, our mission is to accelerate the country’s economic growth through IT and to create global opportunities for local talent whilst developing the Kyrgyz Republic as an emerging hub for innovation. In the long term, our strategy is focused on three clear priorities. Firstly, we want to reach $1 billion in annual revenue generated by HTP resident companies. We aim to scale Kyrgyz IT exports by supporting companies with a favorable tax regime. This means 0% VAT, 0% corporate income tax, 0% sales tax, 5% personal income tax, to help them grow internationally. Then, we want to enable the first unicorn startup founded in the Kyrgyz Republic. The High Technology Park supports startups through international programs, accelerators, and a number of global partnerships, allowing them to access networks in Silicon Valley, Europe, and Asia. We have also set an ambitious target to train and empower 50,000 software developers. Developing these skills is perhaps the most important thing that we do. We are working closely with universities, schools, bootcamps, and private EdTech companies to cultivate a new generation of engineers and digitally savvy professionals. [caption id="attachment_40039" align="aligncenter" width="1280"] Image courtesy of The High Technology Park, Kyrgyz Republic @ the 2025 Gitex Expo in Dubai[/caption] TCA: How has the High Technology Park evolved since its inception? What have been the most significant milestones to date? Nechaeva: Since its inception, the High Technology Park has evolved from a small initiative into a fast-growing IT hub. The Kyrgyz tech ecosystem began developing in 2008, originally with the founding of the Kyrgyz Association of Software and Service Developers - the first professional organization uniting the country’s tech companies. This laid the foundation for a specialized IT regime. The...