Digitization - The Times Of Central Asia

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Kazakhstan, Azerbaijan to Lay Fiber-Optic Communication Cables Along Caspian Sea Bed

On President of Kazakhstan Kassym-Jomart Tokayev's state visit to Azerbaijan, Tokayev noted that the interaction between Kazakhstan and Azerbaijan is based on trust and friendship and serves as an example of interstate relations. He emphasized that now, in addition to cooperation on natural resources, the struggle for access to transportation and logistics opportunities is intensifying around the world. The two Caspian countries are closely cooperating in this regard. Tokayev, alongside Azerbaijani President Heydar Aliyev, took part in the opening ceremony of a railroad route stretching from the port of Xi'an in China across Kazakhstan to Azerbaijan. "This is indeed a very important event. We talked about making joint efforts in the field of digitization, creation of artificial intelligence, and the construction of fiber-optic communications along the Caspian Sea bed. These are unique projects," Tokayev said. Last June, the governments of Kazakhstan and Azerbaijan signed an agreement on laying fiber-optic communication cables along the Caspian Sea bed. The lines will be laid by Kazakhstan's Kazakhtelecom and Azerbaijan's AzerTelecom. The project will be one of the main components of the transnational Digital Silk Road project, and will seek to improve the quality of internet connections in the countries of Central Asia and the South Caucasus. The total length of the cable connecting Kazakhstan and Azerbaijan will be 380 kilometers, and its capacity will reach up to 400 terabits per second. On August 22nd, 2023, the two countries signed a joint venture agreement in Amsterdam that will be responsible for the implementation of this project, including the construction of a fiber-optic communication line.

Digitization

Artificial Intelligence in Central Asia: Applications and Regulation

The debate on the need for worldwide regulation of artificial intelligence (AI) is gaining momentum, given that over the past year AI has become a key tool for millions of people. With a growing number of organizations applying AI in various fields, including medicine, politics and judicial decisions, the urgent question is how to integrate AI into legislation. In Central Asia, in 2020 the National Bank of Kyrgyzstan authorized remote identification of individuals at banks using AI, machine learning and other predictive algorithms to process customer biometric data. Bishkek also introduced a facial recognition system based on artificial intelligence which allows data about wanted persons to be entered, and cameras to automatically identify them and transmit information to law enforcement. Artificial intelligence has also found its application in the political process. In 2020, the Mekenim Kyrgyzstan Party used a digital bot farm during the elections which generated approximately 150 profiles a day, automatically wrote comments and then self-liquidated. In Tajikistan, where the use of AI is not widespread, MegaFon stands out for its introduction of the Dono chatbot in 2019. This artificial interlocutor interacts with around 14,000 subscribers per day, freeing humans from routine tasks and allowing them to deal with more complex issues. In Uzbekistan, meanwhile, the government is taking active measures to stimulate the development of AI technologies. A presidential decree has established comprehensive steps towards the digitization of the economy and the social sphere. Digitization of government data in various sectors, such as justice, communications, finance, education and healthcare are becoming an integral part of the development strategy. The application of AI technologies, starting with image recognition and navigation systems, has already become a tangible part of task-solving in large enterprises, and the country is actively working to create an enabling environment to further expand the use of AI. In Kazakhstan, AI is being actively introduced in the judicial system, and over the past two years AI systems have been used to analyze court cases and predict their outcomes. The authorities believe that this approach helps minimize errors and improves the quality of justice. In the field of healthcare, since 2022 Kazakhstan has been successfully operating the PneumoNet program based on artificial intelligence. This program makes it possible to detect 17 of the most pathogenic lung diseases, including pneumonia, tuberculosis, and cancer. Currently, Kazakhstan, Kyrgyzstan and Tajikistan do not have specific laws regulating the creation and use of AI. Despite this, the Strategy for the Development of Artificial Intelligence in the Republic of Tajikistan until 2040 notes that during the implementation of the first and second stages of said strategy, legal, institutional and infrastructural frameworks will be developed, and the necessary specialists will be trained. Unlike its neighbors, Uzbekistan adopted a presidential decree "On measures to create conditions for the accelerated introduction of artificial intelligence technologies" as early as 2021. This document has become the legal foundation for the further development of AI in the country, defining its main directions. The resolution emphasizes the need to develop...

Kazakhstan Looks to Increase E-Commerce Share to 20%

The further development of e-commerce in Kazakhstan was considered at a government meeting on January 16th, chaired by Prime Minister Alikhan Smailov. The Minister of Trade and Integration, Arman Shakkaliev reported that in 2023 the volume of e-commerce in Kazakhstan exceeded 2.2 trillion tenge ($4.8 billion), equating to 13% of all retail trade, a 0.5% rise on the previous year. Household goods, clothing and footwear, food, cosmetics, and medicines are the most popular goods purchased online. The Ministry is looking to increase the share of e-commerce to 20% by 2030 by expanding the representation of domestic goods on popular marketplaces, developing warehouse and logistics infrastructure, and protecting consumer rights. The Prime Minister noted that globally, by 2025 the share of online trade is expected to exceed 25% of total retail. In Kazakhstan, a significant market share is occupied by foreign online marketplaces. “We must use this opportunity as an additional sales channel for Kazakh products on the world stage. At the same time, we need to develop domestic online stores. To do this, it is necessary to ensure the uninterrupted operation of payment systems, transport and logistics infrastructure, and courier services,” Smailov said. The Prime Minister instructed the relevant bodies to find effective solutions for the development of domestic online stores and broader representation of domestic commodity producers on foreign online marketplaces within a month. “We need our own bonded warehouses, which would simplify the process of delivering goods to both domestic customers and foreign ones. Therefore, it is necessary to launch the construction of bonded warehouses in Astana, Almaty, and Shymkent this year,” Smailov said.

Digitization

Kazakhstan Launches Online Video Conferencing Platform

The Ministry of Digital Development, Innovation and Aerospace Industry of Kazakhstan has announced the launch of Qosyl, an online video conferencing platform which is analogous to Zoom. The launch of the system in pilot mode is now complete, and central government agencies are now using the software for video conferencing. The Minister of Digital Development, Innovation and Aerospace Industry, Bagdat Musin emphasized the importance of the project. “Today, government agencies actively use online platforms to hold meetings, which saves time for civil servants. The Qosyl project ensures that meetings are held in a secure information environment, which is especially important for government agencies,” said Musin. According to the project manager, Nurislan Isakov, “this plan was created in 2020, during the pandemic. There were requests from government agencies to create an online video conferencing platform which would not depend on foreign manufacturers and would not use their servers. It was a prerequisite that the product run on servers in Kazakhstan, which ensures information security. “Due to the fact that the servers are located in Kazakhstan,” Isakov continued, “all media traffic does not pass through foreign countries. The second point, when compared with Zoom, is that our product is easier to use, even for an inexperienced user. It does not require downloading additional applications; you can connect through any browser on any device.”

World Bank Provides Additional Support for Kyrgyz Republic’s Digital Transformation

On January 12th, the World Bank’s Board of Executive Directors approved $7 million in additional financing to the ongoing Digital Central Asia South Asia (Digital CASA) project for the Kyrgyz Republic. This additional financing complements the original $50 million Digital CASA – Kyrgyz Republic Project approved in March 2018 to support the nation’s digital transformation through increasing access to affordable internet, private investment in the ICT sector, and improving the provision of digital government services. “The Digital CASA – Kyrgyz Republic Project supports the country’s digital transformation agenda and the National Sustainable Development Strategy 2018-2040,” stated Naveed Hassan Naqvi, the World Bank Country Manager for the Kyrgyz Republic. “The project is expected to foster sustainable and inclusive growth by helping bridge the digital divide, especially in rural areas of the country. It also aims to enhance the provision of digital government services, thereby promoting efficient and transparent public administration.” Naqvi stated that the funding will enable 800,000 citizens of the Kyrgyz Republic to access better and more affordable internet services, thus bringing the internet penetration rate in the country to 57%. Among the key goals of the project is laying 2,500 kilometers of fiber-optic network across the country, establishing two cross-border fiber-optic links, and building a government cloud (G-Cloud) infrastructure. The Digital CASA – Kyrgyz Republic project will ultimately help integrate the Kyrgyz Republic and other landlocked countries of Central Asia and parts of South Asia into the regional and global digital economy, thereby enabling these countries to reap the benefits of digitization. “The additional financing is critical for closing the financing gap caused by the need to increase the initially planned capacity for data storage and processing on the G-Cloud,” said Sandra Sargent, World Bank Senior Digital Development Specialist and Project Task Team Leader. “G-Cloud is a government cloud platform that serves as one of the key pillars of digital public infrastructure and will provide storage, processing power, and computing capacity to support e-government services, as well as handle large amounts of data.”

Kazakhstan to Host Sixth Digital Almaty Forum

The forum, Digital Almaty 2024, “Industry X: the Digital Evolution of the Future,” will be held in Almaty from February 1st to 3rd, bringing together officials from the Shanghai Cooperation Organization (SCO) and Eurasian Economic Union (EEU), leading experts and entrepreneurs to exchange ideas aimed at creating a new era of digital industry. The Forum will also include Industry 4.0 Startup Battle - a large-scale challenge for the title of best industrial startup - and an exhibition of Kazakhstan's largest subsoil users, technology parks, and technology companies that will share their experience about projects in the IT ecosystem. Panel discussions will feature more than 200 speakers, including international experts, industry leaders, and leading innovators in IT and business. “The Digital Almaty International Forum annually brings together the world’s leading experts from fifteen countries,” Bagdat Mussin, the Minister of Digital Development, Innovations and Aerospace Industry of Kazakhstan said. “In the new year, new digital solutions are needed that will help improve business processes. This platform provides ample opportunities for the presentation and discussion of key trends, projects, and technologies in this industry.” The organizers of Digital Almaty are the Ministry of Digital Development, Innovation and Aerospace Industry, the Ministry of Foreign Affairs, the Almaty municipality, and the Autonomous Cluster Fund “Park of Innovative Technologies” (Tech Garden).