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- 23 Jan 2026
Artificial Intelligence (AI) is rapidly transforming economies, governance systems, and public services worldwide, and Nepal is no exception. Recognizing both the opportunities and risks associated with AI adoption, the Government of Nepal has introduced the National AI Policy 2025 to guide the ethical, responsible, and inclusive development of artificial intelligence. This policy establishes a national framework focused on human-centered values, data protection, transparency, and accountability, while positioning AI as a key driver of socio-economic development. This blog provides an overview of AI ethics and policy in Nepal, highlighting the intent, scope, and significance of the National AI Policy 2025.
Table of Content
- Introduction to AI Ethics and Policy in Nepal
- The Rise of Artificial Intelligence in Nepal
- Why AI Ethics and Governance Matter in a Developing Economy
- Overview of Nepal's National AI Policy 2025
- Background and Rationale for the National AI Policy
- Alignment with Digital Nepal Framework and National ICT Policies
- Global Context and UNESCO's Ethical AI Principles
- Vision, Mission, and Objectives of Nepal's AI Policy Framework
- Vision for Human-Centered and Ethical AI in Nepal
- Mission to Drive Socio-Economic Development Through AI
- Core Objectives of the National AI Policy 2025
- Core Principles of AI Ethics in Nepal
- Human-Centered and Inclusive AI Development
- Transparency, Accountability, and Explainability
- Fairness, Non-Discrimination, and Bias Mitigation
- Data Privacy, Security, and Responsible Data Use
- Protection of Human Rights in AI Systems
- AI Policy Framework in Nepal: Key Pillars
- Legal and Regulatory Framework for AI Governance
- Institutional Structures for AI Oversight and Coordination
- Infrastructure and Data Ecosystem Development
- Skilled Human Resource Development and AI Literacy
- Research, Innovation, and AI-Based Entrepreneurship
- Institutional Mechanisms Under the National AI Policy
- Role of the AI Regulation Council
- Functions of the National AI Centre
- AI Excellence Centres in Universities and Provinces
- Public–Private Partnerships and Stakeholder Collaboration
- Ethical AI Risk Management and Governance
- AI Risk Identification and Classification Framework
- Managing Risks Related to Bias, Deepfakes, and Misinformation
- Cybersecurity and Intellectual Property Protection
- Ethical Use of AI in Surveillance and Public Services
- Sector-Wise Application of Ethical AI in Nepal
- AI in Agriculture, Food Security, and Rural Development
- AI in Education and Digital Learning Equity
- AI in Healthcare and Public Health Systems
- AI in Finance, Industry, and Economic Growth
- AI in Governance, Public Service Delivery, and Security
- Data Governance, Privacy, and Open Data in Nepal's AI Ecosystem
- Data Classification and Secure Data Management
- Open Data Portals and Interoperability
- Balancing Innovation with Privacy and Data Sovereignty
- Capacity Building and AI Skill Development in Nepal
- AI Education in Schools, Universities, and Training Institutions
- Reskilling and Upskilling the Workforce for AI Adoption
- Inclusion of Marginalized Groups in AI Development
- Implementation, Monitoring, and Policy Review
- Policy Implementation Action Plan and Timelines
- Monitoring and Evaluation Mechanisms
- Periodic Review and Policy Adaptation
- Challenges in Implementing Ethical AI Policy in Nepal
- Infrastructure and Investment Constraints
- Data Availability and Quality Issues
- Institutional Capacity and Coordination Gaps
- Future of AI Ethics and Policy in Nepal
- Strengthening Nepal's Global AI Readiness
- Opportunities for Innovation and Sustainable Development
- Long-Term Impact of the National AI Policy 2025
- Conclusion: Building an Ethical and Responsible AI Ecosystem in Nepal
- Key Takeaways from Nepal's National AI Policy 2025
- The Way Forward for Ethical AI Development in Nepal
Introduction to AI Ethics and Policy in Nepal
The Rise of Artificial Intelligence in Nepal
Artificial Intelligence is rapidly transforming how nations approach development, innovation, and public service delivery. In Nepal, AI adoption has gained momentum across universities, private organizations, and government institutions. From chatbots and natural language processing to machine learning applications, Nepali stakeholders have begun exploring AI's potential to address unique developmental challenges.
The journey toward structured AI governance in Nepal reflects years of progressive digital policy development. Building on frameworks like the Electronic Transactions Act 2006, the Information and Communication Technology Policy 2015, the Digital Nepal Framework 2019, and the National Cyber Security Policy 2023, the country has established a foundation for comprehensive AI regulation.
Why AI Ethics and Governance Matter in a Developing Economy
For developing economies like Nepal, ethical AI governance is not merely a regulatory formality, it's essential for sustainable development. Without proper frameworks, AI systems can perpetuate biases, violate privacy, displace workers without support systems, and widen existing socio-economic gaps.
Nepal faces specific challenges including limited digital infrastructure, data scarcity, shortage of skilled AI professionals, and dependency on external technologies. An ethical policy framework helps ensure that AI development serves all citizens equitably, protects vulnerable populations, maintains data sovereignty, and aligns technological advancement with national development goals.
Overview of Nepal's National AI Policy 2025
Background and Rationale for the National AI Policy
Nepal's National Artificial Intelligence Policy 2025 emerged from a clear recognition that AI could help reduce the digital divide, enhance public service efficiency, improve educational quality, create employment opportunities, and contribute to sustainable development goals.
The policy addresses critical gaps identified in Nepal's AI ecosystem: lack of accessible and quality datasets, absence of adequate legal and institutional frameworks for data security, insufficient infrastructure and skilled human resources, limited investment mechanisms for AI startups, and concerns about biased outcomes and privacy violations from AI applications.
Alignment with Digital Nepal Framework and National ICT Policies
The National AI Policy 2025 complements Nepal's existing digital governance architecture. It builds upon the Digital Nepal Framework's vision of transforming Nepal into a technologically advanced nation and integrates with sectoral policies across education, health, agriculture, finance, and public administration.
This alignment ensures that AI development doesn't occur in isolation but strengthens ongoing digitalization efforts across all three tiers of government: federal, provincial, and local.
Global Context and UNESCO's Ethical AI Principles
Nepal's policy framework explicitly embraces UNESCO's principles for human-centered and ethical AI. This international alignment ensures that Nepal's AI development follows globally recognized standards for fairness, transparency, accountability, and human rights protection while being adapted to local contexts and priorities.
Vision, Mission, and Objectives of Nepal's AI Policy Framework
Vision for Human-Centered and Ethical AI in Nepal
The National AI Policy 2025 envisions building a human-centered, ethical, and prosperous Nepal through Artificial Intelligence technology. This vision places human welfare and dignity at the core of all AI development and deployment initiatives.
Mission to Drive Socio-Economic Development Through AI
The policy's mission focuses on maximizing AI use for Nepal's socio-economic development. Rather than viewing AI purely as a technological advancement, the policy positions it as a tool for addressing development challenges and improving citizens' quality of life.
Core Objectives of the National AI Policy 2025
The policy establishes four foundational objectives:
- Building a Sustainable and Reliable AI Ecosystem: Creating the infrastructure, institutions, and regulatory frameworks necessary for long-term AI development.
- Accelerating Economic Growth Through AI: Leveraging AI to increase productivity, create new industries, and enhance Nepal's competitive position in the global economy.
- Enhancing Public Service Delivery: Using AI to make government services more efficient, accessible, and citizen-centric across all administrative levels.
- Strengthening AI Governance: Establishing robust mechanisms to ensure AI systems operate ethically, transparently, and accountably.
Core Principles of AI Ethics in Nepal
1. Human-Centered and Inclusive AI Development
Nepal's AI policy prioritizes human welfare over technological advancement. This principle ensures that AI systems are designed to augment human capabilities rather than replace human judgment in critical decisions affecting people's lives, rights, and opportunities.
Special attention is given to ensuring equal access and participation of children, senior citizens, minorities, persons with disabilities, and marginalized communities in AI development and use. This inclusive approach recognizes that AI systems must serve all segments of society, not just technologically privileged groups.
2. Transparency, Accountability, and Explainability
The policy mandates that AI systems operating in Nepal must be transparent in their operations and decision-making processes. Users and affected individuals should understand how AI systems make decisions, particularly in high-stakes areas like healthcare, finance, education, and public services.
The AI Regulation Council is tasked with providing guidance on accountability, ensuring that clear responsibility exists for AI system outcomes and that mechanisms exist to address grievances and errors.
3. Fairness, Non-Discrimination, and Bias Mitigation
Recognizing that AI systems can perpetuate and amplify existing societal biases, the policy emphasizes developing standards to prevent discriminatory outcomes. This includes careful attention to data quality, algorithm design, and ongoing monitoring of AI system outputs for unfair patterns.
4. Data Privacy, Security, and Responsible Data Use
The policy prioritizes enacting laws on data security to safeguard ownership, exchange, privacy, and security of personal and institutional data used in AI. Data classification systems will be established, with sensitive data maintained under the access and control of relevant authorities.
5. Protection of Human Rights in AI Systems
AI development and deployment in Nepal must respect and protect fundamental human rights. The policy requires that existing institutions enhance their capacity to address challenges related to privacy, ethics, human rights, and cybersecurity risks arising from AI use.
AI Policy Framework in Nepal: Key Pillars
1. Legal and Regulatory Framework for AI Governance
The policy mandates formulating AI-related laws to assess potential risks from AI development and use, and to ensure responsible and accountable usage. Existing sectoral laws and directives will be reviewed and amended to make them AI-compatible.
Data security laws will specifically address ownership, exchange, privacy, and security assurance of data used in AI systems. Standards will be developed to manage challenges like intellectual property misuse, cybersecurity risks, and the spread of misinformation or disinformation through AI.
2. Institutional Structures for AI Oversight and Coordination
Three key institutional bodies form the governance structure:
- AI Regulation Council: Chaired by the Minister of Communication and Information Technology, this council provides overall guidance, develops standards, and regulates AI development and use. It includes representatives from key ministries, regulatory bodies, and private sector experts.
- National AI Centre: Established under the Ministry of Communication and Information Technology, this center promotes, encourages, facilitates, and regulates AI study, research, development, and application. It serves as the focal point for international coordination and acts as the secretariat for the AI Regulation Council.
- AI Excellence Centres: These centers will be established in all provinces within five years, operating in universities, research institutions, and educational institutions to promote AI study, research, development, and application.
3. Infrastructure and Data Ecosystem Development
The policy recognizes that robust AI development requires advanced infrastructure. Provisions will be made for data centers, cloud infrastructure, high-performance computing, reliable electricity supply, and high-speed internet.
Innovative approaches include establishing and operating data centers in Nepal's high mountainous and Himalayan regions utilizing green infrastructure, and conducting feasibility studies on establishing industries to produce AI hardware domestically.
4. Skilled Human Resource Development and AI Literacy
An ambitious goal of producing at least 5,000 skilled human resources in AI within five years drives comprehensive capacity-building initiatives. The policy aims to achieve AI literacy for the entire population, including students at the basic education level.
AI-related subjects will be integrated into curricula of schools, universities, and educational institutions. Academic programs in higher education, certification programs for professionals, reskilling programs to mitigate job displacement, and upskilling programs for IT sector workers will be conducted continuously.
5. Research, Innovation, and AI-Based Entrepreneurship
The policy places special emphasis on research and development through AI Excellence Centres, AI Incubation Hubs to encourage startups, scholarship and internship programs for university students, and a Brain Gain Program to utilize AI-related knowledge of Nepali citizens residing abroad.
Institutional Mechanisms Under the National AI Policy
Role of the AI Regulation Council
The AI Regulation Council meets at least twice annually and performs critical functions including:
- Providing guidance on fairness, transparency, accountability, intellectual property protection, and human rights protection in AI development
- Recommending alignment of national laws with international treaties and norms
- Facilitating coordination among federal, provincial, and local levels
- Testing and ensuring compliance with approved AI policies, laws, and standards
- Providing guidance for effective policy implementation
Functions of the National AI Centre
As the operational hub of Nepal's AI ecosystem, the National AI Centre:
- Promotes, encourages, and regulates AI study, research, development, and application
- Serves as the international focal point for AI coordination
- Coordinates and monitors AI-related programs across all government levels
- Conducts awareness, training, and capacity-building programs
- Sets quality and standards for AI-related products and services
- Develops and publishes the National AI Index periodically
- Identifies AI-related risks and implements mitigation frameworks
AI Excellence Centres in Universities and Provinces
AI Excellence Centres operate at federal, provincial, and local levels, conducting research and development in AI technology, organizing training and workshops for students and researchers, managing data with priority on privacy and ethics, providing policy recommendations to the National AI Centre, and collaborating with national and international research institutions.
Public–Private Partnerships and Stakeholder Collaboration
The policy adopts public-private partnership concepts with procedural simplification and incentives for investments in digital infrastructure. Joint investment from government and private sectors will implement large-scale AI projects, while seed capital will be arranged in collaboration with private and public institutions to promote AI entrepreneurship.
Ethical AI Risk Management and Governance
AI Risk Identification and Classification Framework
The policy mandates preparing and implementing an AI governance framework to classify AI systems based on risk levels and mitigate risks accordingly. The National AI Centre, under AI Regulation Council guidance, will assess existing and potential risks and prepare action plans.
A Regulatory Sandbox will be created for safe development and testing of AI systems before full deployment.
Managing Risks Related to Bias, Deepfakes, and Misinformation
Preventive and control measures will be adopted to mitigate negative impacts from misinformation, deepfakes, and personal biases through AI. Standards will be developed specifically to manage the spread of misinformation and disinformation.
Cybersecurity and Intellectual Property Protection
The policy emphasizes coordinating with AI stakeholders to protect trademarks, patents, and intellectual property during AI usage. Existing institutions will enhance capacity to address cybersecurity risks arising from AI use.
Ethical Use of AI in Surveillance and Public Services
While expanding AI use in citizen security, crime investigation, surveillance, and emergency response, the policy maintains focus on protecting human rights and ensuring accountability. AI applications in these sensitive areas will be subject to rigorous oversight.
Sector-Wise Application of Ethical AI in Nepal
1. AI in Agriculture, Food Security, and Rural Development
The policy promotes agricultural modernization and commercialization through AI programs including agricultural production forecasting, market prediction, soil condition monitoring, pest and disease prediction, data-driven farming systems, crop and disease monitoring, smart irrigation and pesticide use, livestock health monitoring, and e-markets.
2. AI in Education and Digital Learning Equity
AI will reduce learning inequality through natural language processing (NLP), personalized learning, and adaptive learning systems. AI-related subjects will be integrated across educational levels, ensuring that all students, including those in remote areas, benefit from quality educational resources.
3. AI in Healthcare and Public Health Systems
Healthcare accessibility and quality will be enhanced through AI applications in diagnostic imaging, early disease detection, and genomic analysis. This approach aims to address Nepal's healthcare challenges, particularly in underserved rural areas.
4. AI in Finance, Industry, and Economic Growth
The policy targets increasing the information technology sector's contribution to GDP by one percent through optimal AI use across socio-economic sectors. In finance, AI will enhance institutional governance, control financial crimes, and prevent money laundering. In industry, modern technologies like AI automation, automated systems, and Industry 4.0 will improve production, productivity, and quality.
5. AI in Governance, Public Service Delivery, and Security
AI will maximize efficiency at federal, provincial, and local levels, making public service delivery efficient, cost-effective, and automated. Public policy, planning, budgeting, implementation, monitoring, and evaluation will become evidence-based through AI use.
The Nagarik App will be enhanced with AI to improve service effectiveness. Special attention will ensure easier access for women, children, senior citizens, marginalized communities, minorities, and persons with disabilities.
Data Governance, Privacy, and Open Data in Nepal's AI Ecosystem
Data Classification and Secure Data Management
The policy ensures classification of data used in AI, sectoral data collection, dataset creation, and secure storage with simple and secure access. Sensitive data required for AI research and development will remain under the access and control of relevant authorities.
Open Data Portals and Interoperability
An AI-focused open data portal will provide quality datasets in sectors such as agriculture, education, health, industry, and tourism, promoting development and innovation. Open data exchange and interoperability will be promoted to facilitate seamless information flow across systems.
Balancing Innovation with Privacy and Data Sovereignty
While promoting data availability and accessibility, the policy prioritizes domestic industries and businesses to ensure data ownership and self-reliance. This approach balances the need for data-driven innovation with concerns about data sovereignty and national security.
Capacity Building and AI Skill Development in Nepal
AI Education in Schools, Universities, and Training Institutions
AI literacy programs will be conducted through federal, provincial, and local governments. AI-related academic programs in higher education will develop skilled human resources, while certification programs will develop professional capabilities required for AI implementation.
Reskilling and Upskilling the Workforce for AI Adoption
Recognizing potential job displacement from AI adoption, the policy mandates reskilling programs at all government levels to mitigate impacts of potential job reductions. Upskilling programs will enhance AI-related skills of existing information technology sector workers.
Inclusion of Marginalized Groups in AI Development
Skill-based training, capacity-building, and awareness programs will ensure equal access and participation of children, senior citizens, minorities, persons with disabilities, and other marginalized communities in AI development and use. This inclusive approach prevents AI from widening existing inequalities.
Implementation, Monitoring, and Policy Review
Policy Implementation Action Plan and Timelines
The policy includes a detailed action plan (Schedule-1) with specific timelines, responsible agencies, supporting agencies, expected outcomes, and monitoring indicators for 54 action items. Implementation timelines range from 3 months for establishing institutional structures to continuous implementation for capacity building and sectoral applications.
Monitoring and Evaluation Mechanisms
The Ministry of Communication and Information Technology holds primary responsibility for monitoring and evaluating whether policy goals and objectives are achieved. Additional monitoring will be conducted by the Office of the Prime Minister and Council of Ministers, the National Planning Commission, the AI Regulation Council, the National AI Centre, and the Nepal Telecommunications Authority.
Periodic Review and Policy Adaptation
The Ministry of Communication and Information Technology will review policy implementation annually. Concrete standards for monitoring and evaluation will be developed, policy effectiveness will be assessed, and the policy will be reviewed every two years to ensure it remains relevant and effective.
Challenges in Implementing Ethical AI Policy in Nepal
Infrastructure and Investment Constraints
The policy acknowledges that limited financial resources and infrastructure challenges may obstruct AI development. Ensuring adequate data centers, cloud infrastructure, high-performance computing, reliable electricity, and high-speed internet across Nepal's diverse geography presents significant challenges.
Data Availability and Quality Issues
Securing availability of adequate datasets for AI development and application remains a critical challenge. Data generation, easy accessibility, and availability require systematic efforts across sectors to create comprehensive, high-quality datasets.
Institutional Capacity and Coordination Gaps
The policy recognizes risks from lack of sufficient capacity, change management skills, and policy, structural, and operational coordination. Weak meaningful participation of governments at all levels and stakeholders could hinder effective implementation.
Ensuring coherence among sectoral policies, plans, annual budgets, and programs requires sustained cross-agency coordination.
Future of AI Ethics and Policy in Nepal
Strengthening Nepal's Global AI Readiness
The policy sets an ambitious goal to improve Nepal's position within the top 50 countries in the Global Government AI Readiness Index. This aspiration reflects Nepal's commitment to not merely adopting AI but becoming a competitive player in the global AI landscape.
Opportunities for Innovation and Sustainable Development
By facilitating international market expansion of Nepali AI products through diplomatic channels and leveraging AI-related knowledge, skills, and capital of the Nepali diaspora and Non-Resident Nepalis, the policy creates pathways for homegrown innovation to reach global markets.
The emphasis on green infrastructure for data centers and local language integration in AI systems demonstrates Nepal's commitment to sustainable and culturally relevant AI development.
Long-Term Impact of the National AI Policy 2025
Successfully implementing this policy could transform Nepal's development trajectory. Enhanced public service delivery, increased agricultural productivity, improved healthcare access, quality education for all, efficient financial systems, and evidence-based governance could collectively accelerate progress toward sustainable development goals.
The policy's success in producing skilled human resources, establishing AI Excellence Centres in all provinces, and achieving widespread AI literacy could position Nepal as a regional leader in ethical and inclusive AI development.
Conclusion: Building an Ethical and Responsible AI Ecosystem in Nepal
Key Takeaways from Nepal's National AI Policy 2025
Nepal's National AI Policy 2025 represents a comprehensive, ethically grounded approach to AI governance that balances innovation with human rights, economic development with social equity, and technological advancement with cultural sensitivity.
Key principles include human-centered AI development that prioritizes welfare over pure technological advancement, inclusive participation ensuring all segments of society benefit from and contribute to AI development, transparency and accountability in AI systems and governance, data sovereignty balanced with openness and collaboration, and sector-specific applications addressing Nepal's unique developmental challenges.
The institutional framework of the AI Regulation Council, National AI Centre, and AI Excellence Centres creates a robust governance structure. The emphasis on capacity building through education, training, reskilling, and upskilling addresses both immediate skill gaps and long-term workforce needs.
The Way Forward for Ethical AI Development in Nepal
Implementation success depends on sustained commitment from all stakeholders, government agencies at all levels, private sector participants, educational institutions, civil society organizations, and international partners. Adequate financial resources, infrastructure development, and capacity building must proceed in parallel.
Regular monitoring, evaluation, and policy review ensure the framework remains responsive to rapidly evolving AI technologies and their societal impacts. Nepal's commitment to aligning with international ethical AI principles while adapting to local contexts provides a model for other developing nations.
By placing ethics at the center of AI policy, Nepal demonstrates that technological progress and human dignity are not competing goals but complementary objectives. The National AI Policy 2025 charts a course toward an AI-enabled future that serves all Nepalis equitably, protects fundamental rights, preserves cultural identity, and accelerates sustainable development, proving that developing nations can lead in responsible AI governance.
For complete details and the full text of the policy framework, you can access the official National Artificial Intelligence Policy 2025 document from the Ministry of Communication and Information Technology, Government of Nepal. Here is the link:
https://mocit.gov.np/content/13077/national-artifacial-intelligence-aci-policy-2082/
