Kazakhstan Targets €43 Trillion AI Economy Through National Digital Government Transformation

Kazakhstan Charts Path to AI-Driven Economic Transformation

Kazakhstan is positioning artificial intelligence as a fundamental driver of economic growth rather than merely a digital tool. The country's national strategy extends AI integration across universities, manufacturing facilities, energy infrastructure, and government operations. "People should start to recognise that AI is not a toy. AI is not chatbots," said Lee Kai-fu, founder and CEO of 01.AI and chairman of Sinovation Ventures, during the AI & Digital Bridge forum in Astana. "AI needs to become the tool with which people make a living. Then, and only then, does this become a people's digital economy."1

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President Tokayev Leads National AI Economy Initiative

President Kassym-Jomart Tokayev outlined Kazakhstan's ambition during the third meeting of the Artificial Intelligence Development Council, emphasizing that "the true value of AI lies in augmenting human capabilities." The president stressed that modern competition extends beyond natural resources and capital to encompass production efficiency improvements. Kazakhstan's IT sector already demonstrates international reach, with IT service exports exceeding €860 million last year and Kazakh digital solutions deployed in more than 100 countries.1

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Digital Qazaqstan Policy Targets Measurable Economic Gains

The Digital Qazaqstan policy, approved in June and implemented in August, establishes a framework running through 2029 with specific targets connecting technology spending to outcomes. The national strategy aims to cut public service delivery time by at least half and connect at least 70% of fuel and energy assets to digital monitoring by 2029. Digital Development Minister Zhaslan Madiyev indicated Kazakhstan is developing all five layers of the AI economy, from energy infrastructure and chips to cloud platforms, language models, and applications. The global addressable AI market is estimated at more than €43 trillion, representing significant potential for Kazakhstan's AI-powered economy.1

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Digital Government Foundation Supports AI Infrastructure Development

Kazakhstan ranks 24th among 193 countries in the UN's 2024 E-Government Development Index and tenth for online services. This existing digital government infrastructure provides a foundation for deploying applied AI in services citizens already use. The eGov GPT assistant now offers access to 50 public services and has been used by more than 150,000 citizens. Government reports indicate that digitalisation of frequently used services reduced visits to public service centres by 30%, demonstrating how AI adoption builds on previous investment where administrative systems and user demand already exist.2

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Industrial Modernization Through AI Integration

Kazakhstan is working to reduce dependence on raw materials and increase higher-value-added production. In the first eight months of this year, industrial production reached almost €90 billion, while manufacturing grew by 8.4% year-on-year. President Tokayev emphasized that sustaining high economic growth rates requires increasing labor productivity, modernizing the industrial base, and expanding production of high-value-added goods. The 2026 UN Industrial Development Report identifies AI as one of five transformative megatrends reshaping the global economy, making this transition critical for Kazakhstan's value chain advancement.1

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AI Challenge Connects Technology to Economic Outcomes

At the AI & Digital Bridge forum, President Tokayev proposed an AI Challenge built around problems identified by industry. Kazakh and international teams would compete to solve them, with effective projects taken into production. This approach addresses the central question facing Kazakhstan's technology strategy: how to turn digital capabilities into measurable economic gains. Opportunities to reduce equipment downtime, improve freight handling, and simplify administration give the digital agenda immediate economic purpose. Tokayev instructed the government to identify companies for comprehensive AI transformation, accelerate the transition from pilot projects to commercial applications, develop industrial databases, and reduce risks for investors.1

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Education System Prepares Workforce for AI Economy

The forum saw the launch of Qazaq AI Research University (QAIRU), Kazakhstan's first specialized research university focused on artificial intelligence and the first AI-enabled university in Central Asia. The university started operating on 1 September with 528 bachelor's and master's students. Programs cover machine learning, physical AI, industrial AI and smart systems, AI systems engineering and security, intelligent unmanned aerial systems, and digital law. Students use AI throughout their education, including for coursework, lectures, scheduling, and tracking progress. Lee Kai-fu argues that workers who learn to use AI effectively gain advantages over those who do not: "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."1

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