President Tokayev Urges Rapid Shift to AI-Driven Economy to Avoid ‘Middle-Income Trap’

Almaty, The Gulf Observer: President Kassym-Jomart Tokayev has called for Kazakhstan to undergo a rapid, systemic transformation into a data-driven economy powered by Artificial Intelligence (AI). Speaking at the second meeting of the Council for the Development of Artificial Intelligence on May 4, the President warned that the country must adapt to the global technological race or risk permanent stagnation.

Addressing international experts and government officials, President Tokayev framed AI as the definitive core driver of the modern global economy. He cautioned that traditional economic models based on labor and natural resources are losing effectiveness, placing Kazakhstan at risk of the “middle-income trap.”

Strategic Priorities for Digital Transformation

To ensure Kazakhstan remains competitive, the President outlined several critical pillars for the nation’s new economic direction:

• Unified Data Systems: Recognizing data as the foundation of AI, Tokayev called for the rapid creation of unified data systems and the full digitization of archives into machine-readable formats.
• Real-Time Governance: The President urged a transition to a “real-time economy” through platform-based governance, aiming to reduce decision-making cycles from days to seconds.
• Infrastructure & Sovereignty: To secure technological sovereignty, the government announced the development of a large-scale Data Center Valley to support cloud computing and AI infrastructure.

Measuring Impact and Commercialization

A key directive from the meeting was the need for transparent metrics. Tokayev instructed the government to establish clear methods for measuring the specific contributions of digitalization and AI to the national GDP, noting that current indicators often mask the gap between innovation and traditional industries.

Furthermore, the President emphasized the role of the private sector, urging:

• The creation of incentives for business investment in digital platforms.
• The development of a robust venture capital ecosystem.
• The acceleration of research commercialization.

Kazakhstan as a Regional Hub

The President also reaffirmed Kazakhstan’s ambition to become a regional digital and financial center. This strategy includes expanding the use of the digital tenge, regulating digital assets, and implementing simplified migration policies to attract global tech talent.

In his concluding remarks, President Tokayev emphasized that success will be defined by the practical integration of AI into key sectors such as industry, energy, agriculture, and logistics.

“The choice is limited: either we build an effective digital economy or remain on the sidelines of progress,” Tokayev stated.