Draft of National AI Policy 2025 unveiled

KATHMANDU, FEBRUARY 5: The Government of Nepal has drafted a National Artificial Intelligence (AI) Policy to promote the responsible use of AI technology. This policy outlines key initiatives for AI regulation and promotion, including the establishment of institutional frameworks such as an AI Regulatory Council, a National AI Center, an AI Excellence Center, an AI Incubation Hub, and coordination mechanisms at the provincial and local levels.

The Ministry of Communication and Information Technology released the draft of the National AI Policy 2025 yesterday, inviting public feedback.

The draft proposes the formation of an AI Regulatory Council to develop a legal framework and ethical guidelines aligned with international standards for AI development and deployment. As per the draft, the council will be chaired by the Minister of Communication, with the Head of the National AI Center serving as the Member Secretary.  It is planned to have 14 members, including the Governor of Nepal Rastra Bank, the Chief Secretary of the Prime Minister’s Office, and the Secretaries of the Ministries of Communication, Finance, Industry, Education, Science, and Technology, along with representatives from the National Planning Commission, the e-Governance Board, and the Nepal Telecommunications Authority. It will also include two representatives from private sector organizations and three independent AI experts.

When it comes to the council’s key responsibilities, they are ensuring impartiality, transparency, and accountability in AI development and usage, establishing ethical guidelines and standards for AI governance, and protecting intellectual property and human rights in AI-related activities.

The draft also outlines the establishment of a robust AI ecosystem through legal and institutional mechanisms and the National AI Center as the primary coordinating body for AI-related initiatives.

According to the draft, there will be the development of AI coordination and collaboration mechanisms at the provincial and local levels and the establishment of AI Excellence Centers in federal and provincial universities and research institutions to foster AI study, research, and development. Additionally, the policy aims to set up AI Incubation Hubs in collaboration with academic institutions, industries, and both private and government entities to support AI startups and innovation.

The AI Excellence Centers, to be set up in universities and research institutions, will prioritize research and development in AI, focusing on data privacy, ethical AI practices, and transparency. These centres will also promote AI applications in healthcare, education, agriculture, and other critical sectors.

The draft policy emphasizes the need for robust digital infrastructure to support AI development. It includes plans to expand high-speed internet through 5G and beyond, software-defined networks, and fibre-optic technologies. Additionally, the government proposes the development of world-class data centres and cloud infrastructure to facilitate AI-driven innovation. The government also plans to introduce a National AI Index to monitor AI progress in Nepal.

To mitigate AI-related risks, the policy includes provisions for establishing standards to regulate misinformation and disinformation spread through AI, enhancing investment promotion and financial incentives to support AI-driven innovation and entrepreneurship, strengthening AI’s role in public service delivery while addressing potential risks to national sovereignty, geographic integrity, and security, implementing transparency and accountability measures for AI algorithms and technology, and ensuring secure data collection, storage, and processing through strict security protocols.

Furthermore, the policy aims to promote private-sector investment and public-private partnerships in AI research and development. It proposes tax incentives and grants to encourage AI startups and foster innovation

Last fiscal year, the government published a concept paper on AI usage and best practices. The current draft policy builds upon that foundation, with plans to develop comprehensive AI laws in the future. The Ministry has invited public feedback on the draft by next Tuesday. After reviewing the inputs and incorporating recommendations from the Ministries of Finance and Law, the final draft will be submitted to the Cabinet for approval. Once approved, the National AI Policy 2025 will be formally implemented.