Digitalization - The Times Of Central Asia

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Digitalization

Kazakhstan to Establish Ministry for AI Development, Digital Code, and Crypto Asset Fund

In his annual address to the people of Kazakhstan, President Kassym-Jomart Tokayev identified digitalization and artificial intelligence (AI) as key priorities for the country’s development. The president announced a series of institutional and legislative initiatives aimed at positioning Kazakhstan at the forefront of the global technological transformation. Tokayev emphasized that digitalization and AI should form the foundation for modernizing both the national economy and the system of public administration. He instructed the government to establish a dedicated ministry to oversee the development and regulation of artificial intelligence tools. “The new ministry should be headed by a specialist at the level of deputy prime minister,” Tokayev said. Currently, the Ministry of Digital Development, Innovation, and Aerospace Industry is the state body responsible for digitalization in Kazakhstan. The new ministry is expected to be created on its basis. In addition, Tokayev called for the development of a dedicated legal framework to support the large-scale adoption of AI. “The government is tasked with ensuring the total implementation of artificial intelligence to modernize all areas of the economy. As a first step, the adoption of the Digital Code should be accelerated,” Tokayev stated. According to Tokayev, the Digital Code will serve as a foundational document outlining Kazakhstan’s strategic directions for digitalization. It will address issues related to artificial intelligence, the platform economy, big data usage, and other areas central to integrating Kazakhstan into the global digital economy. Tokayev also announced plans to establish a state fund for digital assets, based on the investment corporation of the National Bank. “This fund will accumulate a strategic crypto reserve from the most promising assets of the new digital financial order,” he explained. He stressed the urgency of building a comprehensive ecosystem for digital assets and highlighted the importance of integrating the digital tenge, recently launched in Kazakhstan, into financing mechanisms provided by the National Fund. "Despite global instability, we have taken a decisive step into the era of total digitalization and artificial intelligence. My main mission is to ensure the stable socio-economic development and security of Kazakhstan in these turbulent and dangerous times,” Tokayev said. “The rapid development of artificial intelligence is already influencing people’s worldviews and behavior, especially among young people. There is no alternative, as this process is radically changing the world order and the way of life of all humanity. Therefore, I have set the strategically important task of transforming Kazakhstan into a fully-fledged digital country within three years." As previously reported by The Times of Central Asia, Kazakhstan in July launched alem.cloud, the most powerful supercomputer cluster in Central Asia, designed to support the development and implementation of artificial intelligence technologies.

internet freedom

Kazakhstan’s Rollout of Aitu Messenger Sparks Fears Over Internet Freedom

Kazakhstan is mandating the use of the national messenger Aitu among officials and state-owned enterprises, raising concerns that this move could signal future restrictions on internet freedom. The rollout of Aitu coincides with Russia's introduction of its own national messaging app, Max, which has been accompanied by efforts to block international platforms like WhatsApp and Telegram. The parallels are fueling fears that Kazakhstan may follow a similar path. Why Is Aitu Being Introduced? By September 15, employees of all government agencies and quasi-public sector organizations in Kazakhstan are required to switch to Aitu. The directive comes from the Digital Headquarters under the leadership of Prime Minister Olzhas Bektenov. On August 11, President Kassym-Jomart Tokayev instructed the government to strengthen protections around citizens’ personal data. “A significant part of business and official communication, including the transfer of citizens’ personal data, now takes place through international messengers,” he noted. Tokayev cited examples of sensitive data, such as individual identification numbers and medical information, being transmitted via foreign platforms. He linked this to repeated data breaches, stating that Kazakhstan experienced over 40 major leaks in 2025 alone, including a major incident in June that exposed data on millions of citizens. He argued that Aitu is a necessary step to prevent further leaks. Security Concerns Remain Unanswered Originally launched in 2018, Aitu was used on a limited scale during the COVID-19 pandemic and in educational initiatives. Despite its recent promotion, serious questions about its security remain unanswered. On August 29, Deputy Minister of Digital Development Dmitry Mun confirmed that Aitu is owned by Kazakhtelecom JSC, a national monopoly, and BTS. The app's infrastructure is reportedly hosted entirely within Kazakhstan. However, Yevgeny Pitolin, co-chair of the QazTech Alliance's Information Security Committee, criticized the lack of transparency: “There is almost no information about security. In official responses, the administration avoids these questions, claiming it is a matter of national security.” So far, six million people have registered with Aitu, according to the Ministry of Digital Development. Although this represents nearly one-third of Kazakhstan’s population of 20 million, the ministry has not disclosed how frequently the app is used. A Step Toward a Sovereign Internet? A major point of concern among Kazakhstanis is whether Aitu could pave the way for a sovereign internet model similar to those in Russia or China both of which tightly control domestic digital ecosystems. Russia’s Max messenger, modeled after China’s WeChat, integrates payments, government services, banking, and social networking. Though introduced by VK Corporation, the Russian government has embedded itself in its development. In July, the State Duma passed legislation mandating all official communication between citizens and government agencies to occur via Max. It now comes pre-installed on smartphones, and schools and hospitals are transitioning to it. Crucially, Max works only with SIM cards registered in Russia or Belarus, making cross-border communication difficult. Users have reported frequent disruptions in WhatsApp and Telegram access. Critics argue that the Russian state may be moving toward outright bans on foreign messengers. Kazakhstan Denies Similar Plans...

Digitalization

Digital Geopolitics and AI Strategy in Central Asia

Central Asia, long known as a crossroads of global trade routes, is once again emerging as a stage for strategic competition. This time, the old caravan routes have been replaced by digital highways. The new contest is over technologies and data flows. For countries in the region, especially Kazakhstan, choosing a digitalization model and an AI development strategy is no longer just a technical matter. It is a fundamental decision tied to national security and long-term competitiveness. Equally important is the “digital ideology” behind these choices, something clearly illustrated today by two giants of the Global South: China and India, each with over a billion people and very different approaches to digital growth. The Dragon's Shadow: China's Systematic Expansion in Central Asia China’s ongoing real estate crisis, rising debt, and slowing domestic demand have pushed Beijing to look outward for growth. One major tool is the Digital Silk Road, announced in 2015 as part of the Belt and Road Initiative. This long-term program aims to export Chinese digital technologies. For Central Asian states, it brings an appealing “one-stop shop” of turnkey solutions: everything from 5G mobile and 10G-PON fixed networks to smart city systems (Huawei, ZTE), surveillance platforms (Hikvision), and fintech tools (Ant Group, Tencent). The benefits come with risks. A heavy reliance on one supplier creates the danger of vendor lock-in. When an entire digital ecosystem is tied to a single foreign provider, questions of security and long-term debt become inevitable. Kazakhstan has shown flexibility by experimenting with mixed models rather than relying exclusively on Chinese systems. Competing Models: China's "Walled Garden" and India's "Digital Public Infrastructure" China: The model is centralized, built on state corporations and giant platforms. It delivers speed and scale of growth, but at the cost of strict control and regulation. The Chinese government has tightened its grip on big tech companies (Alibaba and Tencent), imposed stricter rules on the collection and use of personal data under the Personal Information Protection Law (2021), and limited the fintech divisions of major firms to prevent systemic risks. India: The state has developed India Stack, a package of open digital platforms (Aadhaar, UPI, DigiLocker) that serve as the rails for thousands of startups and services. This gave India global leadership in digital payments and created a model of open digitalization. Central Asia is already partially repeating this experience (Kazakhstan’s eGov.kz, Kaspi.kz, and the digital tenge), though without the depth and openness that made the Indian approach unique. Today, Central Asia is forming a pragmatic hybrid: Chinese hardware for rapid infrastructure, Indian logic in public services (GovTech, eGov.kz), and European regulatory standards under the GDPR (in force since 2018), which serves as a global benchmark of trust in data. This “three-axis” hybrid allows a balance between speed of implementation and regulatory control. Europe's Alternative: Global Gateway and the Digital Silk Way Europe seeks to strengthen its position in Central Asia and the South Caucasus by offering an alternative to Chinese expansion. Its key tool is the EU Global Gateway...

Kazakhstan Pushes Nationwide AI Rollout Amid Cybersecurity Risks and Skills Shortages

Kazakhstan is preparing to deploy artificial intelligence (AI) on a large scale across the economy, government, and education. However, experts warn that without transparency, constant auditing, and stronger oversight, the program risks falling short of its goals. Slow Progress and Security Risks A meeting on AI development was held in Astana on August 11, attended by President Kassym-Jomart Tokayev, Prime Minister Olzhas Bektenov, and senior government officials. According to Tokayev, Kazakhstan’s main objective is to become a digital hub in Eurasia, but sluggish implementation, weak control mechanisms, and a shortage of qualified personnel are stymying progress. “I have already spoken about accelerating the creation of a unified national digital ecosystem," Tokayev said. "I have instructed that the necessary infrastructure be prepared, a legislative framework and data collection system be developed, and work begin on the introduction of artificial intelligence. However, the progress in implementing these instructions is unsatisfactory.” Cybersecurity is the priority, as current systems remain highly vulnerable. Since the start of the year, more than 40 major data breaches have occurred. The largest incident, in June, leaked 16.3 million records containing the personal data of Kazakh citizens, out of a population of 20 million, into the public domain. This was confirmed by Olzhas Satiev, president of the Center for Analysis and Investigation of Cyber Attacks (CARCA). By the end of the year, AI is set to be incorporated into e-government and Smart City projects, with a particular emphasis on the AI-Sana program, which aims to develop human capital and transform universities into research centers. The government is also responsible for introducing AI into state agencies and national companies, as well as drafting new legislation regulating AI. There are also plans to migrate all state and quasi-state digital systems onto a single sovereign platform. The national digital platform, QazTech, entered into commercial operation in July. Partnerships With China Kazakhstan intends to work closely with China on new digital products. Tokayev has pointed to China’s DeepSeek platform, developed for $6.5 million, far below the cost of Western equivalents, as an example to learn from. In February 2025, the National Academy of Sciences signed a memorandum with Zhejiang University of Technology, establishing an International Joint Laboratory for Spatio-Temporal Artificial Intelligence and Sustainable Development. The lab will focus on energy and climatology projects. In August, Tokayev expressed support for China’s proposal to create a World Organization for AI Development. Concerns Over Oversight and Staffing Independent analysts believe Kazakhstan has the potential to integrate AI into many aspects of daily life, given its relatively high level of digitalization. However, they warn of the risk of large sums being wasted on ineffective projects. Economist Rassul Rysmambetov has called for a full audit of more than a thousand large state IT systems to identify ineffective platforms. He also highlighted the shortage of skilled personnel: “There is too much technology, but not enough staff. Investments and start-ups sound like good slogans, but where are the professionals? I have often seen IT specialists forced into other jobs due to...

Digital Technologies

Silicon Steppes: Can Kazakhstan Become Eurasia’s Next Digital Nexus?

At this month’s Eurasian Economic Forum in Minsk, Kazakh President Kassym-Jomart Tokayev urged fellow Eurasian Economic Union (EAEU) leaders to reorient toward the future. “Digitalization and artificial intelligence… should become an absolute priority of the EAEU,” he told the plenary session, warning that “we are already living in the era of AI.” Tokayev cited forecasts that AI could contribute $15 trillion to global GDP and displace 300 million jobs by 2030, arguing the EAEU bloc has a “historic opportunity” to act now. “It is important to use this window of opportunity in a timely manner… to strengthen our role in the emerging digital world order,” he stated. “A small group of countries will emerge as leaders in this field… others may be left behind. The EAEU must lead — or, at the very least, avoid lagging behind.” Tokayev’s remarks capped a speech outlining Kazakhstan’s sweeping digital agenda, which includes a national supercomputer, a high-profile artificial intelligence hub, and a “CryptoCity” pilot zone. These efforts signal not only a pivot away from extractive industries but a push to establish Kazakhstan as the heart of Central Asia’s digital and data infrastructure. Once seen as an economic hindrance, Kazakhstan’s landlocked geography is now being leveraged as a potential asset. A 3,700 km West–East Fiber-Optic Highway is under construction, connecting China’s Xinjiang province to the Caspian Sea. The project, expected to be completed in 2026, aims to provide a secure, high-speed terrestrial route for global data flows between Europe and East Asia. By pairing this with expanded redundancy and data center capacity, Kazakhstan hopes to serve as a neutral, cost-effective host for hyperscale data centers supporting global cloud providers and sovereign clients alike. With abundant energy, political stability, and growing fiber capacity, officials argue Kazakhstan can reduce regional dependence on submarine cables routed through politically sensitive chokepoints. Kazakhstan’s infrastructure investments are central to Tokayev’s vision. In Astana, the futuristic Nur Alem sphere — originally built to host the 2017 World Expo — is being converted into Alem.AI, an international artificial intelligence center focused on education, research, and applied technology. The facility will host labs, training academies, and co-working space for startups, to produce 10,000 AI specialists per year and generate $5 billion in AI-driven exports by 2029. Complementing this is the new national AI supercomputer, developed in partnership with UAE-based Presight AI. Launched in May 2025, the system is rated at up to 2 exaflops, powered by NVIDIA H200 chips, and installed within a Tier III-certified data center. Government officials say it will be used for machine learning, scientific modeling, LLM development, and cybersecurity testing, and will eventually be made available to Kazakh universities and private sector firms. Meanwhile, the CryptoCity pilot zone near Alatau will allow the regulated use of cryptocurrencies in daily life, from shopping to property purchases, within a restricted environment. It is being developed under the supervision of Kazakhstan’s Ministry of Digital Development and Samruk-Kazyna, the country’s sovereign wealth fund. Though crypto transactions currently remain largely banned in the country,...

UN Public Service Forum

Uzbekistan Showcases Digital Achievements, Calls for Global Cooperation at UN Public Service Forum

From June 23 to 25, Uzbekistan hosted the 2025 United Nations Public Service Forum (UNPSF) in Samarkand, welcoming over 1,000 delegates, including government officials, international experts, and representatives of global organizations. Under the theme “Five Years Until 2030: Accelerating Public Service Delivery for a Sustainable Future,” the forum emphasized the pivotal role of digital governance in advancing the UN Sustainable Development Goals. Speaking at the opening ceremony, Minister of Digital Technologies Sherzod Shermatov described digitalization as a transformative shift in state-society relations. “Digitization is not merely about introducing new technologies. It is a new format of relations between the state and the people, based on trust, transparency, and mutual understanding,” he said. Uzbekistan’s digital advancements were a central focus. In 2024, the country entered the “very high” category of the UN E-Government Development Index (EGDI) and joined the top “A” group in the GovTech Maturity Index, rising 37 positions. In a message delivered by Saida Mirziyoyeva, head of the Presidential Administration, President Shavkat Mirziyoyev highlighted that Uzbekistan had also climbed 24 spots in the EGDI and 17 in the International AI Readiness Index over the past year. The national e-government portal, my.gov.uz, now provides more than 760 electronic services and serves over 11 million registered users. The integrated “Digital Government” platform connects 49 state agencies and over 216 information systems. To ensure accessibility, 208 public service centers across the country assist citizens without internet access. Opening the forum on behalf of the president, Saida Mirziyoyeva stressed the pace of Uzbekistan’s reforms and the importance of inclusive governance. “The world is changing rapidly, and we in Uzbekistan are responding with active reforms,” she said, noting that women now comprise over 35% of civil servants. She also underscored the importance of youth participation and global partnerships, thanking institutions such as the Global Knowledge Center. In his written address, President Mirziyoyev emphasized ongoing efforts to modernize public service through legislative and structural reforms. These include the adoption of a new civil service law in 2022, expanded social support programs, and the implementation of the mahallabay neighborhood-level service system. “We now deliver more than 700 public services online through a single-window platform,” he noted. One of the forum’s key outcomes was the adoption of the Samarkand Ministerial Declaration, a roadmap for enhancing global public service delivery through inclusive, transparent, and technology-driven governance. The declaration calls for deeper international cooperation and knowledge-sharing in GovTech, artificial intelligence, and public sector innovation. Forum sessions addressed a broad spectrum of issues, including digital inclusion, AI governance, innovation labs, and outreach to underserved populations. Delegates exchanged best practices and pledged to strengthen international partnerships to ensure equitable access to services worldwide. For Uzbekistan, hosting UNPSF 2025 underscored both its rapid digital transformation and its role as an emerging leader in global digital governance. With tangible improvements in global indices and expanding access to public services, the country presented itself as a model of reform and a committed partner in advancing sustainable development.