AI is taking over the World: Will Nepal be left behind?

A young innovator is earning millions of dollars building online businesses with AI. A student in a University of Nepal is using a freely available online chatbot to edit her thesis. These are not some unrealistic future dreams. These are today’s realities, shaped by a driving power more revolutionizing than we are prepared for: Artificial Intelligence.

AI is not something only in the reach of the world’s advanced economies. It is everywhere, in every corner of the world, in every cellphone, computer and tablet. The shape of the world has begun to be defined by this new intelligence. Whichever country can get ahead in using this tool, will go ahead in the future. As countries rush to develop AI policies and integrate it into its national systems, where does Nepal stand?

A world reshaped by algorithms

The world is moving towards digital blocs, in which nations are aligning around technological standards, digital governance and AI ethics. AI technologies are being used literally in every field; for studying, translating languages in real time, predicting weather, solving advanced mathematical problems and much more. Governments are also using it for various purposes like for education in rural areas, agriculture, traffic management and also in diplomacy.

In countries like the USA and China, AI has become a symbol of national power. India is also forward in this race. The United Arab Emirates even appointed the world's first Minister of State for Artificial Intelligence. Rwanda, a country with limited resources has integrated AI in healthcare diagnostics. These are just some global examples.

But in Nepal, although AI has been a topic for discussion, only few people are using it, or let’s say using it correctly for benefits. Despite isolated efforts and innovations, the nation as a whole has yet to grasp the scale of transformation AI is bringing. In a world moving so fast at algorithmic speed, we should not keep silent.

Why does it matter to every Nepali?

For many Nepali, AI may sound like it’s irrelevant to everyday life which is totally untrue. The impact of AI in Nepali society is already visible and it will grow more in the near future.

Nepali youth, who already migrate in large numbers for work, will increasingly face destination countries demanding digital skills. The Gulf countries, European nations and neighbouring countries are adapting their labour markets. Many jobs will also be replaced by AI. Are we preparing our citizens to adapt to this change?

AI Diplomacy

As AI begins to shape everything from economic development to global governance, diplomacy is also not left untouched. A new form of diplomacy-AI diplomacy-is emerging as a new frontier in international relations. As artificial intelligence reshapes global power structures, countries are not only investing in AI capabilities but also negotiating norms, rules and ethical frameworks to guide its use. From discussions at the UN and G7 summits to bilateral partnerships and regional forums, AI is no longer just a technical subject, it is a matter of national interest, security and strategic influence. Countries are competing to set standards, regulate the use and prevent misuse of AI, placing AI diplomacy at the heart of foreign policy of many nations.

For Nepal, engaging in AI Diplomacy is a necessity. Though not a major AI innovator, Nepal can advocate for equitable AI policies that consider the needs of developing nations by raising this in regional dialogues like BIMSTEC or SAARC, and in multilateral forums. Establishing bilateral cooperation with AI-advanced countries can bring in technical expertise, training and resources. AI can support Nepal in its development goals- from smart agriculture and disaster-risk management to e-governance and education.

With proactive AI-diplomacy, Nepal can ensure it is not a passive observer but a good contributor in shaping a digital future.

Charting a National Response

Nepal has made significant progress in the field of Information and Communication Technology (ICT) over the past two decades. The Digital Nepal Framework 2076 marked a key step in Nepal’s digital journey, prioritizing AI, big data, cloud computing, and blockchain. Supporting policies like the ICT Policy 2072 and National Cybersecurity Policy 2080 aim to strengthen digital infrastructure. Initiatives like Nagarik App and Digital Nepal are commendable.

Nepal’s National AI Policy 2081(2025) has been drafted aiming to integrate AI into key sectors such as agriculture, healthcare, education, improve public services and boost economic growth.The policy emphasizes ethical AI development, research promotion, and responsible data governance to ensure AI technologies are used transparently and safely. To support implementation, the policy proposes establishing institutions like the AI Regulatory Council, a National AI centre and AI Excellence Centres in provinces. It also calls for investment in digital infrastructure.

Released for public consultation in February 2025, the draft policy is currently under review. Although there might be challenges in the implementation of this policy due to several factors such as limited AI infrastructure, shortage of skilled AI workforce, regulatory and ethical challenges, dependency on foreign AI technologies etc., it presents a timely foundational framework for Nepal’s AI journey. With the right vision and coordination, we can build a strong AI system by investing in digital infrastructure, partnering with academia and the private sector, promoting local innovation and ensuring inclusive and ethical AI development.

A moment of decision

Artificial Intelligence is a civilizational shift which will decide how countries rise and fall in the coming decades. For Nepal, this is not just catching up with others, it is about choosing what kind of nation we want to be in the future.

We have youth, creativity, inclusivity and progressive society. We should make use of it. We must be bold enough to work smartly to make a better future for all of us.

AI is taking over the world. The question is: Will Nepal shape this future or be shaped by it?

The author is Joint Secretary at the Ministry of Foreign Affairs, Government of Nepal