The global technological race to develop AI solutions and harvest their benefits is increasingly attracting the attention of not only the world’s leading tech giants and largest economies, but also developing countries eager to find their place in a new AI-enhanced reality.

Aretera’s Regional Policy Digest provides an overview of the AI development landscape in the countries of Central Asia, the South Caucasus, as well as Mongolia, focusing on key regulatory and industry initiatives, as well as major constraints in regional integration initiatives.

The adoption of AI policies and practical initiatives varies considerably across these countries, reflecting differences in national strategic priorities and available resources. Regional AI leaders such as Kazakhstan and Uzbekistan, also Central Asia’s largest economies, are rapidly advancing their corresponding infrastructure, underscoring their intent to assume a strong position on the regional stage. In contrast, countries such as Turkmenistan and Tajikistan show limited activity, hindering the integration of AI into their economies and public administration.

Regarding development priorities, Kazakhstan and Armenia focus on building supercomputing capacities, data management, and regional cooperation, while Uzbekistan, Kyrgyzstan and Mongolia emphasize using AI for public needs and in the economy. Only Kazakhstan and Uzbekistan have introduced special regulatory regimes (AI sandboxes) to foster the technology’s development.

Notably, while Tajikistan was the first to adopt an AI strategy, it focuses on broad goals and tasks, whereas Kazakhstan and Uzbekistan, which introduced their policies later, provide more specific frameworks and parameters for AI development (industry-oriented). Meanwhile, Azerbaijan, Georgia and Mongolia are still in the process of developing strategies, showing interest in international integration and adherence to global AI standards.

A significant difference in the perception of AI across the region is that while AI-leading countries are oriented towards creating AI models and products with a product-centric approach, countries in Central Asia and the South Caucasus, as well as Mongolia are more focused on regulating the sector, which remains underdeveloped in the region.