New AI policy sets ambitious targets

Kathmandu, Aug 25:The government has approved the National Artificial Intelligence (AI) Policy, aiming to develop skilled human resources, boost innovation and use AI to transform crucial sectors within the next five years. As per the policy, which was approved by the cabinet on Monday, the government will open AI Centers of Excellence in all provinces with the objective of making AI literacy accessible—from school-level students to the general public. The government also aims to rank Nepal within the top 50 countries on the global AI Readiness Index.

To meet these targets, the government will build a strong AI ecosystem, supported by legal reforms, institutional frameworks and infrastructure. A major focus is on ensuring secure and ethical AI development. For this, the policy envisages formulating new data protection laws, updating existing legislation and creating regulatory sandboxes for testing AI systems safely. According to the policy, AI will be used to modernize agriculture by improving production forecasting, soil monitoring, pest and disease prediction and irrigation. The policy also encourages AI use in energy, with plans to implement smart grids, smart switching and smart meters.

In healthcare, AI will support diagnostic imaging, early disease detection and genomic analysis. Similarly, in the transportation sector, AI will help manage traffic flow, parking systems, and public transit to reduce costs and enhance road safety, the policy states. The government plans to establish a National AI Center to oversee implementation of the policy. As per the policy, AI incubation hubs will also be set up to support startups and innovation, while a “brain-gain” program will be implemented to attract knowledge and expertise from Nepali professionals living abroad.

To ensure AI applications are secure and reliable, the government will introduce benchmarking, certification and standards. Similarly, a National AI Index will track progress, while new guidelines will help prevent misuse of AI—such as spreading misinformation or violating intellectual property rights.

The policy also envisions building state-of-the-art infrastructure like data centers, cloud computing, high-speed internet, high-performance computing and reliable electricity supply. Green infrastructure will be prioritized for setting up data centers in Nepal’s mountainous regions. Likewise, it states that a feasibility study will be conducted to explore local production of AI-related hardware. By integrating AI into sectors like agriculture, health, energy, transportation, tourism and finance, the government hopes to boost productivity, improve service delivery and contribute an additional one percent to the national GDP from the ICT sector.