Kazakhstan faces middle-income trap, Tokayev calls for AI-driven digital economy shift

President of Kassym-Jomart Tokayev stated that Kazakhstan is facing a “middle-income trap,” citing the need to transition to new sources of economic growth during a meeting of the Council for the Development of Artificial Intelligence held in Almaty on May 4.

According to Tokayev, traditional growth drivers such as natural resources and low-cost labor are approaching their limits, while alternative sources have not yet been sufficiently developed. He noted that avoiding economic stagnation will require a shift toward a digital economy, supported by the development of large-scale digital platforms.

The president emphasized the importance of establishing a unified government data system, stating that without such infrastructure, the effective application of artificial intelligence would remain limited. He also highlighted the need to transform public services into more efficient systems by reducing administrative procedures and processing times. In this context, Tokayev indicated that decision-making cycles, which currently take several days or weeks, should be shortened significantly through digitalization.

Tokayev also referred to global trends, noting that data from international research institutions indicates a widening gap between developed and developing economies. He stated that the expansion of artificial intelligence technologies is contributing to the concentration of capital and technological capabilities among leading economies, increasing disparities.

He added that Kazakhstan needs to assess its current capabilities in order to develop practical artificial intelligence solutions and respond to these global dynamics.

Earlier, Prime Minister Olzhas Bektenov instructed government agencies to introduce artificial intelligence tools for economic forecasting. The initiative is intended to improve planning processes by enabling the analysis of large datasets, identification of patterns, and generation of more accurate projections in response to evolving global conditions.