Kazakhstan is positioning artificial intelligence as more than a digital convenience. The Central Asian nation, rich in oil and minerals, wants AI to become a fundamental part of its economic fabric — from factory floors to university lecture halls.
Speaking at the AI & Digital Bridge forum in Astana, Lee Kai-fu, founder of 01.AI and chairman of Sinovation Ventures, urged a shift in mindset. “People should start to recognise that AI is not a toy. AI is not chatbots,” he said. “AI needs to become the tool with which people make a living. Then, and only then, does this become a people's digital economy.”
President Kassym-Jomart Tokayev echoed that sentiment, telling the third meeting of the Artificial Intelligence Development Council that “the true value of AI lies in augmenting human capabilities.” He added: “Competition is no longer limited to natural resources, capital, and markets; it now extends to the speed at which production efficiency can be improved.”
From raw materials to high-value production
Kazakhstan's industrial output reached nearly €90 billion in the first eight months of this year, with manufacturing growing 8.4% year-on-year. But Tokayev stressed that sustaining growth requires more than volume. “To sustain high rates of economic growth, we must increase labor productivity, modernise the industrial base, and expand the production of high-value-added goods,” he said.
The government is now tasked with identifying companies for comprehensive AI transformation, accelerating the move from pilot projects to commercial deployment, and developing industrial databases to support data-driven decision-making. The goal is to reduce the country's dependence on raw material exports and climb the value chain.
Digital Development Minister Zhaslan Madiyev outlined a five-layer approach to building an AI economy, covering energy infrastructure, chips, cloud platforms, language models, and applications. “We see the greatest potential for Kazakhstan in applied AI: in creating and scaling solutions that increase the efficiency of the economy and business, as well as the quality of people's daily lives,” he said. He cited estimates putting the global addressable AI market at more than €43 trillion.
Building the human capital
Infrastructure alone is not enough. Kazakhstan is investing in education to create a workforce that can develop and use AI. The launch of Qazaq AI Research University (QAIRU), the first AI-focused research university in Central Asia, marks a significant step. It opened on 1 September with 528 bachelor's and master's students, covering machine learning, industrial AI, intelligent unmanned systems, and digital law.
Students at QAIRU use AI throughout their studies — for coursework, lectures, scheduling, and progress tracking. President Tokayev said the university's research program “must be directly aligned with the practical needs of economic development.”
Lee Kai-fu argues that fears of AI destroying jobs are misplaced. “People are always wondering how can I get a job? AI is taking my job. That is not so, because it is you who knows how to use AI that can make the most money,” he said.
Infrastructure and regional context
Kazakhstan's ambitions face real constraints. Research from the MIT Kuo Sharper Center for Prosperity and Entrepreneurship, which assessed AI readiness in Central Asia and Azerbaijan, found strong political will and funding but limited access to critical infrastructure, including microchips and high-performance computing.
Despite these hurdles, Kazakhstan's IT sector is expanding abroad. IT service exports exceeded €860 million last year, and Kazakh digital solutions are now used in more than 100 countries. The country is also exploring AI applications in energy and infrastructure, areas where it has deep expertise.
The push for an AI-driven economy comes as the region undergoes broader changes. The Caspian Sea's retreat is exposing new islands along Kazakhstan's coast, a reminder of the environmental shifts that accompany economic development. Meanwhile, the country's cultural heritage continues to gain international recognition, with its rock-hewn Sufi mosques recently added to the UNESCO World Heritage list.
For Kazakhstan, the AI transition is not just about technology — it is about redefining the nation's economic identity. As President Tokayev put it, the country must move from being a supplier of raw materials to a producer of knowledge and innovation. Whether that vision becomes reality will depend on how effectively the government, businesses, and universities can work together to turn ambition into action.
