TLDR: Nepal is actively developing and implementing its National Artificial Intelligence (AI) Policy 2025, aiming to integrate AI across various sectors for modernization and enhanced service delivery. While the policy outlines ambitious goals, including institutional frameworks and sectoral applications, it faces significant challenges such as a lack of robust safeguards against AI risks, low digital literacy, and a need for a detailed funding roadmap. The nation’s current ranking of 150th out of 193 in the 2024 Government AI Readiness Index underscores the urgency for strategic investment in infrastructure and human capital.
Kathmandu, Nepal – Nepal is making significant strides towards establishing a comprehensive and responsible Artificial Intelligence (AI) framework with the drafting of its National AI Policy 2025. This foundational document serves as a roadmap for the country’s transition into an AI-driven era, envisioning the integration of AI across key development sectors to modernize industries, enhance service delivery, and boost national productivity.
The policy outlines a robust framework for AI regulation and promotion, including the proposed establishment of several institutional mechanisms. A high-level AI Supervision Council, to be chaired by the Minister for Communications and Information Technology, is envisioned to provide strategic oversight on AI utilization. Complementing this, a National AI Excellence Center is proposed to manage AI research, address ethical considerations, and foster innovation. The policy also calls for the development of AI coordination and collaboration mechanisms at provincial and local levels, along with AI Excellence Centers in universities and research institutions to promote study and development in the field. Furthermore, AI Incubation Hubs are planned in collaboration with academia, industry, and government entities to support AI startups and innovation .
The National AI Policy 2025 emphasizes the formulation and revision of laws to govern AI applications, covering crucial areas such as intellectual property, data governance, and the import/export of AI technologies. It prioritizes building essential digital infrastructure, including national databases, high-performance computing, and cloud platforms. A strong focus is also placed on fostering research, innovation, and startup ecosystems through dedicated funding and training initiatives. Crucially, the policy highlights awareness campaigns, capacity-building programs, and the integration of AI into school curricula to cultivate a sustainable AI workforce .
Key sectors identified for AI adoption include healthcare, where AI can improve access and service quality through diagnostics and telemedicine; education, for implementing adaptive learning and personalized assessments; agriculture, for smart farming and disease monitoring; energy, for smart grids and forecasting; transportation, for traffic and logistics management; and tourism, for AI-based travel planning . The policy also aims to leverage AI for fraud detection, automated governance, and fintech innovations, and for disaster management through early warning systems .
Despite its ambitious vision, critical reflections on the draft policy highlight several areas requiring further development. Concerns have been raised regarding the policy’s lack of robust safeguards against potential risks such as deepfakes, AI-driven surveillance, and algorithmic bias. This is particularly pertinent in Nepal, where digital literacy remains a significant challenge. Additionally, the policy currently lacks a detailed funding roadmap, raising questions about the financing of crucial infrastructure like high-performance computing systems and cloud platforms. Infrastructure deficits, such as unreliable internet access in rural areas, further pose a threat to the equitable deployment of AI technologies .
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Nepal’s current standing in global AI readiness also underscores the urgency for action. The country ranks 150th out of 193 nations in the 2024 Government AI Readiness Index, serving as a critical wake-up call. Experts emphasize that Nepal must strengthen its AI governance framework, significantly invest in infrastructure and human capital, and prioritize ethical, inclusive, and accountable AI development to improve its global standing and harness AI’s full potential for national development . The government has invited public input on the draft policy, indicating an openness to refining its strategy, with effective engagement requiring widespread participation beyond just policymakers and experts .
