In an attempt to diversify and expand its economy, improve long-term stability and potentially reduce poverty, Kazakhstan is turning to AI, innovation and entrepreneurship.

Kazakhstan has traditionally relied on fossil fuels, minerals and other raw commodities, leaving its economy vulnerable to fluctuations in global commodity prices. The country’s economic diversification beyond natural resources is therefore critical to achieving long-term economic stability.

Technology is now central to that strategy. President Kassym-Jomart Tokayev described AI adoption as a “matter of national survival,” arguing that Kazakhstan must remain a key player within the global technological race. The country hopes to have a fully digital economy by 2029. Its ambition is not simply to create a technology sector, but to use technology to create new industries, better-paid employment and a more resilient economy.

Building a Digital Economy

Kazakhstan’s abundance of critical materials and energy resources, combined with its strategic position between Europe and Asia, provides a strong foundation for investment in digital infrastructure and advanced industries. Thirteen international transport corridors cross the country, and around 85% of rail cargo traveling between China and Europe transits through Kazakhstan.

Through economic diversification in the technological sector, Kazakhstan hopes to widen its job diversity, thus opening up greater employment possibilities. International investment is critical to this transition. The Tumar Fund, supported by the World Bank’s Fostering Productive Innovations Project and Kazakhstan’s Ministry of Artificial Intelligence and Digital Development, encourages private investment into innovative businesses by matching allocated project funding with private investor contributions. The objective is not simply to finance individual startups, but to encourage an entrepreneurial culture capable of generating businesses and jobs outside traditional industries.

On March 13, 2026, the World Bank approved a $600 million loan to support private-sector-led growth, create better-paid jobs and strengthen economic resilience in Kazakhstan. Andrei Mikhnev, World Bank country manager for Kazakhstan, said that strengthening energy efficiency, expanding renewable energy, advancing digital connectivity and data protection, and improving access to social assistance would help create a “more dynamic, inclusive, and resilient economy.”

Technology and Employment

For technology to reduce poverty, infrastructure must translate into employment and higher incomes. Digital skills are therefore crucial to Kazakhstan’s strategy. According to the World Bank, around two-thirds of Kazakhstan’s population report having basic digital skills, while approximately 41% report intermediate skills.

Crucially, digital skills are associated with higher wages. People with basic digital skills in Kazakhstan earn around 25% more than those without them. Those with intermediate skills earn around 46% more, while workers with advanced digital skills earn around 50% more. Although these figures show an association rather than direct causation, they highlight the potential of digital skills to improve employment and income prospects. This association helps explain why investment in digital skills is an important part of Kazakhstan’s human-capital strategy and may improve access to better-paid work.

E-governance

Digitalization can affect poverty at several levels through creating jobs, improving wages, increasing productivity, and making access to public services more efficient. Kazakhstan’s technological transformation extends to e-governance. According to the country’s Ministry of Digital Development, Innovation and Aerospace Industry, 92% of government services are available online, with 85% accessible through mobile devices. The government is now moving toward an AI-GovTech model, using integrated data analytics to inform and improve policy and public service provision.

By introducing a digital, data-driven employment system that tracks labor trends, maps investment flows, forecasts potential employment and assesses vulnerability, Kazakhstan hopes to spot key areas for development more easily. Digitalization is therefore being used not only to create economic activity but to identify vulnerabilities and reshape the economy itself.

Conclusion

Kazakhstan’s economic diversification is about more than joining the global AI race. It is a broader strategy to reduce dependence on volatile natural resources, modernize the economy, create new opportunities, and support long-term prosperity. In 2025, the economy grew by 6.5% and GDP exceeded $300 billion, according to President Tokayev. Meanwhile, accumulated net foreign direct investment surpassed $150 billion, with significant investment flowing into manufacturing, high-tech industries and deep processing.

Technology alone cannot eradicate poverty. Kazakhstan’s diversification strategy depends also on sustained economic growth, and strategies which ensure the benefits of technological growth reach the wider population.

While Kazakhstan’s economic diversification does not provide a simple blueprint that any other country can copy, its experience does raise a wider global question for other resource-dependent economies. Venezuela, like Kazakhstan, has historically relied on oil, leaving it vulnerable to global price fluctuations. However, technological development could potentially provide a similar route toward diversification for the nation.

– Cecilia Catmur

Cecilia is based in the UK and focuses on Good News and Technology for The Borgen Project.

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