Nepal is at a turning point in its AI development, facing a choice between technological sovereignty and dependency on foreign systems. While global AI tools promise rapid progress, the country risks becoming a “data colony” if it continues relying on external platforms without building its own infrastructure. Key challenges include the lack of high-quality Nepali language data, limited access to expensive computing power, and ongoing brain drain as skilled engineers migrate abroad. Startups also struggle with high costs due to reliance on foreign cloud services paid in foreign currency. Despite these issues, Nepal has opportunities, particularly in hydropower-based green data centers that could support sustainable AI infrastructure. Government policy efforts, including the National Artificial Intelligence Policy 2082, show progress, but implementation remains weak. Local startups are adapting through practical solutions like retrieval-augmented AI systems. Nepal’s future depends on investing in talent retention, digital infrastructure, and locally relevant AI innovation.
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https://nepaleconomicforum.org/nepals-ai-future-a-choice-between-sovereignty-and-dependency/
