Digitalization - The Times Of Central Asia

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AI Could Boost Productivity of Kazakhstan’s Workforce, Study Finds

AI is poised to significantly enhance workforce productivity in Kazakhstan without triggering mass job losses, according to the initial findings of a joint study by the Ministry of Science and Higher Education and the international analytical agency Quacquarelli Symonds (QS). The results were presented at a government meeting on January 6. Minister of Science and Higher Education Sayasat Nurbek emphasized that AI should be seen not as a threat to employment but as a tool to augment human labor and improve efficiency. “About 70% of Kazakhstan’s workforce has medium or high potential for productivity growth through the use of artificial intelligence. In 53% of occupations, automation of specific job functions is possible. In most cases, this doesn’t mean job elimination but rather changes in job content and evolving skill requirements,” Nurbek said. In response to the findings, the ministry is developing a phased action plan to modernize Kazakhstan’s higher education system. Starting in 2025, AI-related skills are being integrated into all educational programs. Currently, 95 universities across the country have already introduced AI disciplines into their curricula. Nurbek also announced the forthcoming establishment of an Artificial Intelligence University, in line with a directive from President Kassym-Jomart Tokayev. The new institution will focus on training specialists in interdisciplinary fields aligned with industry demand and will conduct applied research. It will operate as part of the Alem.ai ecosystem and collaborate with leading global universities and tech companies. Tokayev has declared the transformation of Kazakhstan into a digital nation within three years as a national goal. In his New Year’s address, he designated 2026 as the Year of Digitalization and Artificial Intelligence Development. Speaking to Turkistan newspaper on January 5, he underscored Kazakhstan’s strategic commitment to the widespread adoption of AI across the economy and public life. According to Tokayev, Kazakhstan has a strong foundation, built on progress in digital public services, fintech, and several key economic sectors. Two national supercomputers, Alem.Cloud and Al-Farabium, have already been launched. In 2025, Kazakhstan’s IT service exports reached approximately $1 billion. “The advent of artificial intelligence has created a dividing line between countries that will make it into the future and those that will be left behind. That is why I have declared digital technologies and artificial intelligence a priority for Kazakhstan’s development,” Tokayev said.

Digitalization

Face Pay, Palm Scans, and AI Cameras: Inside Kazakhstan’s Digital Transformation

Daily life in Almaty, Kazakhstan’s largest city, increasingly resembles scenes from a futuristic film. Subway fares can be paid with a glance, schoolchildren enter campuses by scanning their palms, and traffic flows are monitored by an expansive video surveillance system. With just a smartphone, citizens can apply for a marriage license, open a business, or access official documents within seconds. Kazakhstan has embraced rapid digitalization, positioning itself as a regional leader in GovTech and fintech. Authorities promote this trajectory as a means to create a secure and efficient environment, and the public has largely welcomed it. The country now boasts one of the world’s highest penetration rates for cashless payments and digital services. Yet the swift adoption of emerging technologies has brought new challenges. The digital infrastructure is evolving faster than the country’s legal frameworks can adapt, raising concerns among experts about how to balance technological convenience, public safety, and the right to privacy. Biometric Security or Overreach? Kazakhstan’s biometric systems are being integrated into a growing ecosystem of everyday services. A prominent example is the Alaqan system in schools, which replaces traditional entry cards with palm-scanning technology. Currently in a pilot phase at nearly 300 schools, the government plans to expand the system nationwide within the next two to three years, should it prove to be successful. Supporters argue this enhances child safety by preventing unauthorized access. Critics, however, warn that it also involves building a vast biometric database of minors, requiring unprecedented security protocols. Simultaneously, the Ministry of Digital Development is rolling out a national video surveillance network powered by artificial intelligence. The system, which integrates citywide cameras into a unified platform, will enable real-time facial and license plate recognition and detect incidents such as fights, large gatherings, or abandoned items. Minister of Artificial Intelligence and Digital Development Zhaslan Madiyev described the system as a tool to monitor public safety 24/7. Equipment Dependence and Strategic Risk Much of Kazakhstan’s surveillance infrastructure relies on equipment from major Chinese companies such as Hikvision and Dahua. Their products are favored for their cost-effectiveness, but concerns have been raised internationally over cybersecurity vulnerabilities and potential data access “backdoors.” Several U.S. and EU countries have imposed restrictions on these firms for national security reasons. In Kazakhstan, which pursues a multi-vector foreign policy, the issue is viewed more as technical than political. Experts recommend diversifying suppliers and enforcing strict data encryption protocols, regardless of the origin of the equipment. Kazakhstan’s exposure to cybersecurity risks became clear in February 2024, when a leak involving the Chinese firm iSoon compromised databases belonging to local telecom operators and targeted government institutions, including the Unified Pension Fund. The incident prompted an urgent reassessment of data security practices. Centralized data hubs, experts noted, can only function securely if accompanied by significant investment in cybersecurity infrastructure. Legislation Lagging Behind While Kazakhstan has a law on personal data, experts argue it is outdated, particularly given the rapid integration of artificial intelligence into public systems. Recent legislative amendments now allow biometric identification to...

Digital Technologies

Kazakhstan Advances Digital Transformation with U.S. Partnerships

Kazakhstan, Central Asia’s largest economy, is rapidly positioning itself as a regional leader in digital transformation. Increasingly, United States partners no longer view Kazakhstan solely as a source of natural resources. Instead, future cooperation is expected to expand into digital technologies and artificial intelligence (AI). Advances in Digitalization In October, Kazakhstan reaffirmed its digital ambitions with a major technological breakthrough. Kaspi, the country’s leading fintech firm and a systemically important bank, launched Kaspi Alaqan, a palm-based payment system that requires no phone, card, or internet connection. The service will debut in December 2025 through dedicated ATMs in Almaty before expanding nationwide. Analysts say the innovation puts Kaspi on par with Amazon One and China’s WeChat, highlighting Kazakhstan’s readiness to adopt cutting-edge global technologies. Traditionally associated with oil, gas, and uranium, Kazakhstan is now investing heavily in becoming Central Asia’s digital hub, an evolution that presents strategic opportunities for the U.S. Partnerships in digital governance, AI, and innovation ecosystems align closely with Washington vision for expanded cooperation in Eurasia. According to the United Nations, Kazakhstan ranked 24th globally in digital development as of June 2025, placing in the top 10 for online public services. Services such as school enrollment, vehicle registration, and passport issuance have been fully digitized, requiring minimal citizen effort. In some cases, the process is faster than in many Western countries. Kazakhstan’s government aims to double its GDP to $450 billion by 2029, a target that will require more than a 2.5-fold increase in investment. Digital technologies are central to this strategy. To manage this transformation, a new Investment Board was established in October 2025 to oversee large-scale projects and determine economic priorities. In September, the Mazhilis (lower house of parliament) passed a landmark law on artificial intelligence. Deputies highlighted fairness, transparency, and the protection of personal data as key legal principles. The newly launched National Artificial Intelligence Platform hosts over 100 AI agents that support e-government functions and expand access to technology. Additionally, in July, Kazakhstan introduced a supercomputer powered by NVIDIA H200 GPUs. With performance reaching 2 exaflops (FP8), it is the most powerful computing system in Central Asia. Startups, universities, and research centers now have access to this infrastructure. The language models KazLLM and Alem LLM have also been introduced, capable of generating content in Kazakh, Russian, English, and Turkish. For the U.S., Kazakhstan’s AI ecosystem offers a valuable partner for collaborative research, ethical framework development, and State Department–supported initiatives using AI for sustainable development. Investing in the Future U.S.–Kazakhstan cooperation in digital innovation is already accelerating. In September, Amazon announced a $200 million investment in Kazakhstan’s internet infrastructure. A distribution agreement with Kazakhtelecom will bring Amazon’s Kuiper satellite network to the republic, improving connectivity and driving economic growth. Additionally, 24 startups from Central Eurasia have joined U.S. accelerator programs such as AlchemistX and Silicon Valley Residency. These initiatives, launched in September in Palo Alto, connect regional teams with U.S. venture capital and technology ecosystems. Kazakhstan is also advancing blockchain infrastructure. Astana recently launched the...

EDB and Tajikistan Expand Cooperation in AI and Digital Technologies

Tajikistan is accelerating the digitalization of its economy through new partnerships aimed at advancing AI and related technologies. The country’s Ministry of Industry and New Technologies has signed a memorandum of cooperation with the Eurasian Development Bank’s Digital Initiatives Fund (EDB DIF), focusing on AI and digital transformation. The agreement was formalized in Dushanbe during the AI Conf 2025 international conference. It outlines joint innovation projects, knowledge exchange, and capacity building in the field of AI. Key areas of cooperation include integrating AI into public administration, developing a multimodal large language model (LLM), and advancing initiatives in energy efficiency and cybersecurity. “An Artificial Intelligence Council has been established under the ministry to supervise major national projects,” said Dauren Rakhimzhanov, Managing Director of the EDB's Digital Initiatives Directorate. “Under the new memorandum, we will jointly develop AI technologies, exchange expertise, and expand the portfolio of digital projects in the Republic of Tajikistan.” The agreement also grants Tajikistan access to the EDB DIF’s financial and technical resources, including grant programs designed to support digital solutions with cross-border integration potential and technology sharing among member states. One of the first joint projects is the creation of the “Electronic Map of Dushanbe,” a digital platform that will underpin broader smart city development. The EDB signed a grant financing agreement for this project with the state unitary enterprise “Smart City” on September 24, 2025. Alexander Petrov, Director of the EDB Digital Initiatives Directorate, emphasized the importance of international collaboration in developing AI. “Strengthening cooperation in AI is essential, not only among EDB member states but also with global institutions,” Petrov said. “These projects facilitate knowledge exchange and contribute to building a resilient digital ecosystem.” According to Petrov, Kazakhstan, Kyrgyzstan, and other countries in the region have already shown interest in joining similar initiatives. He noted that such programs represent a step toward deeper economic integration across the Eurasian region.

Middle Powers

Which Central Asian States Qualify as Middle Powers in 2025?

As global power shifts toward multipolarity, Central Asia’s states are emerging as active regional players. This article assesses which of the five republics—Kazakhstan, Uzbekistan, Turkmenistan, Kyrgyzstan, and Tajikistan—qualify as middle powers in 2025, based on economic strength, diplomatic reach, strategic capacity, and governance. Kazakhstan stands as the region’s only consolidated middle power, balancing fiscal stability, institutional reform, and multi-vector diplomacy. Uzbekistan is a rising aspirant, propelled by reforms but still reliant on external financing and centralized authority. The remaining states remain constrained by dependence and limited institutional depth. Together, they reflect a region increasingly capable of shaping, rather than merely absorbing, global and regional change. A comparative analysis of five Central Asian republics shows how far each has advanced toward this status. 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This article assesses which of the five republics—Kazakhstan, Uzbekistan, Turkmenistan, Kyrgyzstan, and Tajikistan—qualify as middle powers in 2025, based on economic strength, diplomatic reach, strategic capacity, and governance. Kazakhstan stands as the region’s only consolidated middle power, balancing fiscal stability, institutional reform, and multi-vector diplomacy. Uzbekistan is a rising aspirant, propelled by reforms but still reliant on external financing and centralized authority. The remaining states remain constrained by dependence and limited institutional depth. Together, they reflect a region increasingly capable of shaping, rather than merely absorbing, global and regional change. A comparative analysis of five Central Asian republics shows how far each has advanced toward this status. Economic Power Economic autonomy is a defining attribute of middle-power capability, enabling states to project influence, sustain policy independence, and finance external engagement. In Central Asia, dependence on Official Development Assistance (ODA) and remittances often reflects constrained fiscal capacity and limited domestic capital formation, while diversified, resilient economies underpin strategic autonomy. Key indicators—GDP per capita, credit ratings, debt sustainability, and export diversification—illuminate the region’s economic hierarchy. Kazakhstan stands as Central Asia’s only consolidated economic middle power. Resource-backed growth, a prudent fiscal regime, and a sovereign wealth fund (the National Fund of Kazakhstan) have anchored macroeconomic stability. With a “BBB” credit rating or equivalent from major agencies, Kazakhstan demonstrates sound debt management and policy credibility. Ongoing diversification efforts under the new economic policies—from renewables to financial modernization—aim to reduce hydrocarbon dependence and deepen integration into global supply chains. Its role as a trans-Caspian logistics hub enhances both strategic and commercial influence. Uzbekistan, by contrast, is an emerging frontier market propelled by post-2017 reforms in currency liberalization, taxation, and state-enterprise restructuring. Rapid GDP growth and expanding private-sector activity mark its trajectory toward fiscal autonomy, though continued ODA inflows averaging around $1.1 billion to 1.3 billion annually, primarily from the Asian Development Bank (ADB), the World Bank, and bilateral partners such as Japan, the United States, and the European Union, highlight its residual dependence on external concessional financing. To achieve genuine middle power status, Uzbekistan must roughly double its real economic output over the next decade, a scale of growth aligned with the shift...

Aviation

What’s Holding Back Kazakhstan’s Air Transport Market?

Kazakhstan’s aviation industry has posted steady growth in recent years. Over the past four years, passenger and cargo traffic have risen by more than 36% and 23% respectively, with an actively expanding route network. The state’s aviation development strategy prioritizes infrastructure upgrades, improved safety standards, and expanded international cooperation. Yet, despite these advances, several systemic barriers continue to prevent Kazakhstan from realizing its potential as a Central Asian aviation hub. These challenges were discussed at the New Silk Way International Transport and Logistics Business Forum and the annual TransLogistica Kazakhstan 2025 exhibition. Experts agree that Kazakhstan’s air transport market ranks among the fastest-growing globally, driven in part by geopolitical shifts that have boosted the volume of Chinese and European transit flights through its airspace. Industry Trends and Infrastructure Expansion A major airport modernization effort is underway, targeting key cities such as Astana, Almaty, Aktobe, Shymkent, and Karaganda. Renovations have already been completed in Aktau, Pavlodar, and Balkhash, while new terminals have opened in Almaty, Kyzylorda, and Shymkent. New airports are under construction in Kenderli, Zaisan, Katon-Karagai, and Arkalyk. Total investment in infrastructure has exceeded $2.9 billion. According to the Civil Aviation Committee, in 2025, Kazakh airlines transported a record 15 million passengers and 171,000 tons of cargo. Transit flights accounted for 414 million aircraft-kilometers. Deputy Chairman Sarsen Zharylgasov has stated that the country now operates 56 domestic routes, up 9% year-on-year, and maintains air links with 30 countries. International Routes and Regional Competition In 2025, 33 new international routes were launched, connecting Kazakhstan to cities including Budapest, Munich, Cairo, Shanghai, Phuket, and Delhi. Currently, 140 international routes operate under the Open Skies policy, which has applied to 15 airports since 2019. Looking ahead to 2026, new routes are planned to major global hubs, such as Singapore, Tokyo, Rome, Vienna, and New York. The long-anticipated direct U.S. flight hinges on a successful completion of the FAA's CAT-1 audit, following Kazakhstan’s passage of the preliminary technical assessment in August 2024. The 2022 air transport agreement between the U.S. and Kazakhstan remains a key step toward this goal. Air Astana plans to operate the route using a Boeing 787 Dreamliner, though delivery has been delayed to Q2 2026 due to production backlogs. Meanwhile, Uzbekistan is ramping up its own ambitions. During President Shavkat Mirziyoyev’s 2025 visit to the US, Tashkent signed a deal with Boeing for 22 Dreamliners. Analysts suggest this could intensify regional competition and enhance Uzbekistan’s appeal as a transit hub. Airport Bottlenecks and Tariff Issues Despite progress in large cities, many regional airports remain hampered by chronic underinvestment and outdated tariff policies. According to Zharylgasov, tariffs at several airports have not been updated in over two decades. “We are working to completely deregulate tariffs, but the Agency for the Protection and Development of Competition does not yet support us,” he noted. Eliminating state control over airport tariffs could introduce market-based pricing, attract investors, and improve profitability, particularly for regional hubs. Digitalization Drives Efficiency Digital transformation is another key priority. Kazakhstan...