Experts highlight that while artificial intelligence (AI) has the potential to significantly boost Kazakhstan's efficiency, drive innovation, and improve its global competitiveness, challenges persist due to limited access to microchip technology and an unclear regulatory framework, The Caspian Post reports citing The Astana Times.
The road to AI prosperity might not be completely smooth, the article’s authors Vladimir Kuryatov warn, especially with limited access to technology that supports AI growth.
“We do not have our own microelectronics, production of semiconductors, chips with high-bandwidth memory - something that is critical for the development of this sphere. Exports related to artificial intelligence technologies have been put under strict control. And this is understandable, given the geopolitical rifts and the fact that today the battles are being fought in the sphere of technological development,” wrote Kuryatov in Kazinform.
United Nations (UN) Secretary-General António Guterres noted that AI capabilities are extremely unevenly distributed during his visit to China in September 2024.
“Today, AI capabilities are concentrated in a handful of powerful companies in a small number of countries. Many nations face serious challenges in accessing AI tools. To truly harness its potential, international cooperation and solidarity are needed,” he said.
Tight regulatory scrutiny when it comes to AI technology could put developing countries like Kazakhstan in a disadvantageous position.
“As a developer, I am concerned about too much regulation of certain equipment on which we can do artificial intelligence,” said Madina Abdrakhmanova, deputy director of product and external affairs, senior data scientist at the Institute of Smart Systems and Artificial Intelligence (ISSAI) at Nazarbayev University.
Kazakhstan, along with many other states, must get additional authorization in order to obtain particular chips. Artificial restriction of access to technology creates inequality. In contrast, Abdrakhmanova used Elon Musk, an American entrepreneur, as an example of someone who had no restrictions on purchasing 100,000 graphics cards.
“He has no problems with this! The same thing is happening with OpenAI. They are the first to receive new chips and servers from Nvidia (a leading global manufacturer of high-end graphics processing units). Accordingly, they have a certain advantage. This is my vision as a developer,” she said.
Artem Rychko, head of data processing at 7Generation, echoes her argument, highlighting that access to computing power is a key factor in advancing AI development.
He suggests that one solution is to purchase ready-made servers, which can cost millions of dollars. However, even with sufficient funds, the issue remains due to high demand amid the certain level of monopoly held by Nvidia for such equipment.
“Unfortunately, a new factor has been added in Kazakhstan. Because of the geopolitical situation, Nvidia has extended restrictions on exporting computing power to us. But I know that this issue is being resolved by the government,” said Rychko.
He refers to the ongoing negotiations for a U.S. export license to supply Nvidia chips to Kazakhstan, led by the Kazakh Ministry of Digital Development, Innovation, and Aerospace Industry.
“The next step in the development of artificial intelligence in Kazakhstan largely depends on the effectiveness of these negotiations. And here there is hope for success, as our request for the supply of computing power has no ‘double bottom.’ The use of chips will be as transparent as possible,” wrote Kuryatov.
Creating proper regulatory framework
Another important factor for Kazakhstan to advance in AI development is to establish a balanced regulatory framework-one that addresses misinformation and national security concerns while remaining appealing to investors.
“Digital law has its own peculiarities, and the main peculiarity is that law always follows technology. Technology appears first. It is labeled in one way or another in the system of social relations, and then we look at how it should be regulated,” said Yekaterina Smyshlyayeva, a deputy of the Mazhilis, the lower house of Kazakh Parliament.
According to her, global regulation of artificial intelligence has been approached cautiously. Initially, only codes of ethics and agreements were introduced, with the EU leading the way by adopting the first global regulatory act and the ChatGPT standard for personal data protection. However, there are still no unified international regulations.
“No country in the world wants to lose the technological race. If we sign any international act and it restricts us in some issues, even if they are ethical issues, it means that we will be limited to some extent in the development of technology. Nevertheless, legal regulation is extremely necessary both from the point of view of the safety of using AI and from the point of view of attracting global investment,” said Smyshlyayeva.
Another issue is that many AI-driven solutions in Kazakhstan are on hold because certain sectors are not yet prepared to implement these technologies without proper legal regulation.
“Most of these projects are in ‘pilot mode.’ Businesses can afford to use artificial intelligence, unlike the state system, especially in high-risk areas such as healthcare. Therefore, we hope that with the help of the expert community, we will make a comfortable law that will allow technology to develop, ensure safety, and outline clear and precise rules of the game,” said Smyshlyayeva.
