AI in Nepal, at crossroads
The government of Nepal released the long-awaited National AI Policy on February 4, 2025, for public consultation, following the concept paper on AI in July 2024. However, these offer very little insight into how Nepal as a country intends to approach the evolution of AI in promoting human rights and democratic values based on accountable and trustworthy AI systems. This once again leads to the belief that the country’s policies relating to information and digital technologies continue to skew towards policy-based evidence rather than evidence-based policy.
Technology is undoubtedly continuing to shape democracy. However, democracy has also shaped the legal rules concerning technology. Regardless of the scale of Nepal’s economy, the question of how the country wants to move forward with technology demands an answer. AI technology promises to improve economies, governance, and social fabric. It is also predicted to boost labor productivity growth globally by around 1.5 percent, representing almost $7 trillion in extra global GDP over 10 years.
The Challenge of AI Divide
As the AI revolution takes place, policymakers in Nepal should consider what steps to take if the country doesn’t have cutting-edge AI models like those from Anthropic and Open AI, particularly as AI gets increasingly divided in the global order, similar to the digital divide between the haves and the have-nots. It would be highly optimistic for Nepal to have its own national AI champions from the onset, requiring policymakers to choose between small, bespoke, lightweight, open-source designs for specific use cases or large enterprise-wide computationally intensive models that may not necessarily be aligned with Nepal’s context.
They must also consider whether to use a European or US model, brick-and-mortar data centers, or providers in the cloud. Sovereignty and identity will influence these decisions, especially regarding trust in the security of AI running on a foreign-sourced model in a remote data center.
Human-centred Approach
Focusing solely on AI’s economic benefits, greater efficiency, productivity, and innovation seems harmful. This strategy risks overlooking key issues such as human rights, social equality, and the possible detrimental effects of AI on citizens. Instead, a human-centered approach to AI can focus on human well-being, rights, and dignity and ensure that AI technologies are created and implemented to benefit humanity, safeguard fundamental rights, and address social issues. It would also prioritize the ethical imperatives required to build confidence in AI systems and protect against adverse outcomes such as bias, discrimination, or privacy infringement.
Leveraging Universal Guidelines
One of the four pillars of the National AI Strategy is “ensuring responsible and ethical AI development”. In this respect, Universal Guidelines for AI should be considered as a basis for developing an ethical AI policy. These guidelines protect people by establishing institutional obligations and reinforcing their rights in the context of such systems.
Since Nepal has endorsed the UNESCO Recommendations on the Ethics of AI, the values and principles included by the organization should also be used as guidance in developing a national AI policy. The UNESCO Recommendation on the Ethics of AI, adopted in November 2021 by the 193 member States, affirms that “AI actors should make all reasonable efforts to minimize, avoid strengthening, or perpetuating applications and discriminatory or biased outcomes throughout the lifecycle of the AI system.”
Guidelines for National Policy
A national AI policy should incorporate appropriate provisions on generative AI. Given concerns about various human rights implications related to their use, clear guidelines for developing and deploying generative AI are essential. Strengthening AI Governance for a robust national framework requires establishing an AI governance regulatory body, a national AI policy framework, and a national AI risk management framework without which policy becomes orphaned.
Foundations for National AI Policy: Proposals for Ethical Governance and Assessment require the government to establish a High-Level AI Ethics Group/National AI Ethics Commission, develop national AI ethics principles, and develop a comprehensive AI assessment framework. These are important building blocks to any successful National AI policy development, and Nepal should not miss this trajectory.
The Ministry of Communication and Information Technology’s commitment to an inclusive policy-making process and encouragement of continuous dialogue among stakeholders to refine and enhance the national AI policy are positive steps. Adopting the recommendations will not only facilitate AI development but also contribute to building public trust and confidence in AI systems, ultimately leading to a more equitable and just Nepali society.
When ingenuity counts for more than brute force, a better way to ensure Nepal’s AI growth would be to attract and retain top researchers from elsewhere. The AI era is still in its infancy, and much remains uncertain. However, the breakthrough AI requires in Nepal will come from giving ideas and talent the opportunity and space to flourish at home rather than copying approaches other countries have adopted.
