A country once known for its oil and vast grassland plains is now racing to become Central Asia’s digital powerhouse — betting on artificial intelligence, AI governance, and crypto assets to reinvent its future.
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Nations are currently competing to harness the power of artificial intelligence and digitalisation. China and the United States are at the forefront of the race, while the European Union is more heavily focused on ethical regulation and digital rights.
For emerging economies, entering the race signals an attempt to shift the global power dynamics in their favour, seeking to narrow the development gap.
For the Central Asian nation of Kazakhstan, it’s also a means to branch out from its raw materials-based economy, a model which cannot last forever.
The country has made digitalisation and AI development the centrepiece of its national strategy, which Kazakh President Kassym-Jomart Tokayev announced in his September public address.
“I have set the strategically important task of transforming Kazakhstan into a fully-fledged digital country within three years,” he stated.
A ministry, a law, and a code
To support the strategy, the president announced the creation of the Ministry of Artificial Intelligence and Digital Development, which will oversee the integration of AI across key sectors of the economy and restructure governance around AI principles.
Astana is also drafting a Digital Code, designed to organise digital governance and ensure data protection.
Another bold step for Kazakhstan is a proposed law on artificial intelligence, which regulates 'high-risk' systems and mandates the labelling of AI-generated content.
Crucially, the legislation gives regulators the authority to suspend harmful AI applications.
“We should not let ethical norms fall behind this rapid evolution,” Tokayev warned at the recent United Nations General Assembly, aligning Kazakhstan’s stance with the European Union’s approach to responsible AI.
AI governance and crypto assets
Kazakhstan’s ambitions go beyond regulation, as it plans on transforming the financial sector and public services as well.
The country already boasts some of the region’s most advanced digital public services, with over 92% available online and cashless transactions making up the vast majority of payments.
The country now wants to move from e-Gov to AI-Gov — embedding machine learning into governance itself.
At the same time, Astana is experimenting with digital finance. The government is expanding the use of its national digital currency, digital tenge, which is already being used to finance projects from the National Fund.
“Now is the time to scale up the use of the digital tenge within the national and local budgets, as well as in the budgets of state holdings,” Tokayev said in his September address.
In the same speech, Tokayev announced the establishment of the State Digital Assets Fund, which will serve as the reserve for crypto and digital assets.
Hub of Eurasia
Another way Kazakhstan aims to position itself as the digital hub of Eurasia is by introducing a focus on AI in education.
For this, President Tokayev announced the creation of an AI research university, which should prepare the future generation of specialists capable of supporting Kazakhstan through its digital transformation.
The Alem.ai International Centre for Artificial Intelligence, launched on 2 October, will spearhead this transition by designing AI tools for policymaking, data analysis and forecasting.
This summer, the country also launched Central Asia’s most powerful supercomputer, with a second one on the way. The machine will power the country’s e-government services and support AI model training.
Digital identity in a multipolar world
Kazakhstan’s digital transformation also carries a geopolitical weight. Positioned between China, Russia, and Europe, the country is balancing partnerships while asserting digital sovereignty — welcoming Western data firms, cooperating with Chinese researchers, and nurturing its own AI ecosystem.
This multi-vector approach mirrors Astana’s broader foreign policy and places Kazakhstan among a small group of nations embedding AI into their institutional fabric.
The challenge now is to turn bold reforms into tangible progress that strengthens competitiveness without losing control of the rapid technological shift.
