Digital Technologies - The Times Of Central Asia

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Digitization

AI Facial Recognition System Being Tested in Two Cities in Kazakhstan

Kazakhstan has launched a national video monitoring system powered by artificial intelligence technologies. The project, developed by the Ministry of Internal Affairs, the National Security Committee, and the Ministry of Digital Development, Innovation, and Aerospace Industry, aims to enhance surveillance capabilities across key locations in the country. The system is designed to recognize faces, detect abandoned objects, capture offenses, and identify vehicles by make, model, and color. Critical sites such as railway stations, airports, hotels, streets, intersections, and shopping malls are priority areas for implementation. During the World Nomad Games in Astana, the technology was reportedly instrumental in locating lost children and missing persons. Authorities also noted that the system helped detain 46 wanted individuals in Astana and 30 in Almaty. Proponents argue that these technologies could contribute to improving public safety and reducing crime. Kazakhstan’s initiative follows a broader global trend of integrating AI into “smart city” systems, similar to developments in China, Russia, and some European countries. Officials say the system will be expanded with additional cameras nationwide to increase monitoring coverage. To date, more than 1.3 million video cameras have been installed in Kazakhstan, with 310,000 of them connected to operational control centers and police duty stations. Advocates of the system highlight its potential to deter crime and bolster public security, although concerns about privacy and misuse of surveillance technology have been raised internationally. Worldwide, AI video surveillance systems are being adopted to improve law enforcement and public safety. In China, they are used for facial recognition to track criminals and prevent offenses. Russia has integrated AI into its video systems to detect potential threats, while in the UK, intelligent cameras are used for crowd management and event security. While supporters emphasize the benefits of such systems in enabling faster responses to incidents and reducing crime, the deployment of AI in surveillance has sparked ongoing debates over privacy, civil liberties, and the potential for misuse.

Digitalization

Kyrgyzstan’s High Technology Park Confirms Indefinite Preferential Tax Regime

Kyrgyzstan’s President Sadyr Japarov has signed amendments to the Law "On the High Technology Park of the Kyrgyz Republic," extending the Park’s preferential tax regime indefinitely. Established in 2011, the High Technology Park was designed to foster IT businesses by drastically reducing or eliminating tax burdens for companies exporting digital goods and services. Previously, the High Technology Park offered tax exemptions for export-oriented IT companies for a 15-year period, set to expire in 2026. Under the new amendments, this regime is now permanent. Currently, resident companies of the Park benefit from exemptions on sales tax, profit tax, and value-added tax (VAT). Employees of these companies enjoy a reduced income tax rate of 5%, while the social insurance tax is 12% of their average monthly wage. The amendments also grant the Park's supervisory board the authority to independently elect its chairperson, a change expected to enhance the Board's efficiency. This move significantly boosts the Park's appeal to both domestic and international IT businesses. Kyrgyzstan’s IT sector is among the country’s fastest-growing industries. In 2021, Kyrgyzstan established the Ministry of Digital Development, tasked with advancing e-government initiatives and expanding the range of government services available online.

Artificial intelligence

Kazakhstan Leads Central Asia in AI Readiness

According to IMF data analyzed by Ranking.kz, Kazakhstan ranks as the leading Central Asian country in global artificial intelligence (AI) readiness, while Uzbekistan and Tajikistan are at the bottom of the regional standings. The AI readiness index, which covers 174 countries, evaluates factors such as digital infrastructure, human capital, technological innovation, and legal regulation. It draws on data from the World Bank, the International Labor Organization, and other sources. Kazakhstan ranks within the top 50 countries for AI readiness, holding 48th place with an index score of 0.55, just behind Russia, which ranks 47th. McKinsey & Company has noted Kazakhstan’s use of AI to enhance public services, particularly through geographic information systems and spatial data. For instance, Kazakhstan has employed a statistical model that integrates geographic, demographic, and economic data to assess infrastructure needs across 6,293 villages, identifying 3,500 villages with the highest potential to cover 90% of the rural population. This approach enables the government to deliver essential services and infrastructure more effectively to rural areas. Following Kazakhstan in 48th place, with a noticeable gap, is Kyrgyzstan (99th with 0.43). Tajikistan ranks 123rd with an index of 0.37, and neighboring Uzbekistan is in 131st place with an index of 0.35, placing it last among Central Asian and EAEU countries. Turkmenistan was not included in the IMF index.

Digital Technologies

EDB Releases Finance for Kazakhstan’s Digital Investment Platform

Following an agreement signed by the EDB and the Investment Committee of Kazakhstan’s Ministry of Foreign Affairs and National Information Technology JSC, in July, the Eurasian Development Bank’s Fund for Digital Initiatives has allocated the first tranche for a project to establish a National Digital Investment Platform in Kazakhstan. The platform aims to provide comprehensive support to investors and investment projects by streamlining interactions between government authorities and the quasi-government sector to promote investments in Kazakhstan’s economy, and will coordinate and optimize the selection and registration of investment projects, the conclusion of investment agreements, and their monitoring. In addition, the project is expected to serve as a digital transformation model for attracting and supporting investment which can be implemented in other EDB member states: Armenia, Belarus, Kyrgyzstan, Russia, and Tajikistan. The platform which already has 755 registered investment projects, will become fully operational by 31 July 2025. Back in March, The Times of Central Asia reported Kazakhstan’s Prime Minister Olzhas Bektenov's announcement that to achieve the target of increasing the Kazakh economy to $450 billion by 2029, at least $150 billion of foreign investment was required during the interim period.

Digitization

Kazakhstan’s Largest Hackathon to Take Place Across the Country

Decentrathon 2.0, Kazakhstan's largest multi-location hackathon, will be held on October 18-19 across major cities, including Astana, Almaty, Shymkent, Karaganda, and others, gathering more than 2,500 developers from the country’s 17 regions to compete for a $50,000 prize. According to the Ministry of Digital Development, Innovations, and Aerospace Industry, participants will tackle challenges related to AI, Blockchain, GameDev, and Telegram mini apps. Additionally, a virtual job fair will offer developers the chance to connect with top companies and explore local and international career opportunities. Organized by the Blockchain and AI Technology Center (BAITC) and Astana Hub, with support from the Ministry of Digital Development, Innovations, and Aerospace Industry, this year’s hackathon will be an expanded including leading universities and tech parks, making it a truly national event. The inaugural event in 2023 gathered more than 1,500 participants from nine regions. Zhaslan Madiyev, Minister of Digital Development, Innovations, and Aerospace Industry, stated that: "Decentrathon is the first large-scale IT event spanning every region of Kazakhstan and one of the key initiatives of the Generative Nation movement this year. Our goal is to drive the country's AI transformation. Initiatives like this must have a national scope, providing young talents across Kazakhstan with the opportunity to contribute to technological and AI development." Magzhan Madiyev, CEO of Astana Hub, added, "AI engineers play a pivotal role in Kazakhstan's AI transformation. The Generative Nation movement’s initiatives focus on developing human capital in AI, enabling them to work on projects that will transform our country and have a global impact."

Digital Technologies

Start of Robot Deliveries in Almaty

Almaty is now using Yandex Qazaqstan robots for home deliveries of orders from restaurants and cafes via its Yandex Go service. Equipped with sensors, including lidar and cameras, which enable them to recognize objects and avoid obstacles and pedestrians, as well as a neural network system capable of recognizing traffic lights and road signs, the robots move independently around the city. With a capacity of 60 liters, each robot's cargo compartment can accommodate, for example, several pizzas and drinks, accessed by customers via the Yandex Go app. During the first phase, the robots will operate within one city district but in time, travel further afield and expand connections between new cafes and restaurants. Welcoming the initiative, Zhanabek Olzhas Nurzhanuly, head of Almaty's digitalization department, said the use of the robots could help make the city greener and more convenient for residents. In addition to making deliveries, robots have also appeared in Yandex Maps, where they can replace the usual navigation cursor via a simple app. update. Delivery robots are actively used in several countries. For example, Starship Technologies' robots have already made over 5 million deliveries in Estonia, the UK, and U.S. In the latter, in partnership with Grubhub, they mainly serve university campuses, and in Europe, robots deliver food and goods via apps such as Bolt Food,