More than 60 countries, including our neighbours, have already published national strategies on Artificial Intelligence regarding how AI will be developed, regulated, and used within their borders. Nepal, for most of the past decade, was not among them, and that absence has cost us dear. In August 2025, Nepal finally approved its National AI Policy 2082, a significant milestone. But having a policy on paper and making it work on the ground are two different things. Governments around the world realised early that AI was not to be solely left in the hands of the private sector. The EU adopted the first global AI legislation, the EU AI Act, which became effective in August 2024. It categorises AI systems according to the level of risk: those that present unacceptable risks like social scoring by governments are prohibited completely. The high-risk systems, such as AI in hiring or medical diagnosis, have to be transpired and safe to work. The EU's approach is clear: technological progress must not come at the cost of human rights or public safety. Closer to home, India unveiled its IndiaAI Mission in March 2024 which was supported by a budget of more than IRs 10,371 crores over a period of five years. The mission is built around seven key pillars, which include computing infrastructure, AI innovation, data access, AI applications, workforce training, startup financing, and ethical AI. With subsidised rates of as little as Rs 65 per hour, India is constructing more than 18,000 specialised computing units that are available to researchers and startups. It has established AI Data Labs nationwide, is investing in 13,500 AI scholars through PhDs, and is creating AI models that are trained in Indian languages and local conditions. The National AI Policy 2082 adopted by Nepal, which follows months of inter- ministerial consultation, is a true step in the right direction. The policy provides a legal and regulatory framework to govern AI, prioritises ethical and transparent applications of AI in all areas, and includes the prospective establishment of a National AI Centre and an AI Regulation Council. It has a goal of training at least 5,000 qualified AI specialists, incorporating AI programmes in schools through university, and fostering government-business connections. These are precisely the types of foundations that a developing country should have on paper. What is of concern though is not the ambition of the policy, but its implementation. A well-known international index that ranks AI readiness in 193 countries places Nepal at position 150, which indicates acute deficits in infrastructure, highly skilled labour, and the ability to regulate. The policy does not stipulate a particular budget. It states about the public-private collaboration but does not provide any tangible incentives to invest. A policy that seems good on paper but has hit a snag in execution is of no use to anybody. The possibilities are valid and worth struggling. Artificial intelligence may transform health care provision in Nepal's remote mountain and hill districts. It might enhance the agricultural prediction to farmers who remain reliant on climatic patterns that are becoming more unpredictable with climate change. In education, AI-based individualised learning mechanisms may also be used to access students in villages. In the field of public administration, AI has the potential to decrease bureaucratic delays and enhance service delivery. These gains have been proven by countries with similar economic positions. To fulfill its promise, a number of things need to occur immediately in order to make the National AI Policy 2082 effective. One, a specific budget has to be dedicated to it. Second, the AI Regulation Council should be formed as soon as possible and manned by truly independent experts, rather than political nominees. Third, data governance should not be overlooked: Nepal does not have appropriate structures of data quality, data security, and privacy of citizens. AI created on bad or uncontrolled data will yield bad and even detrimental results. Fourth, the issue of brain drain should be taken into consideration. The talent gap will not disappear without the policy providing competitive opportunities domestically, in the form of research grants, incubation of startups, and rational public sector AI positions. There is also the question of public awareness. The AI policy cannot be a discussion between the ministries of the government and technology experts only. The common people should be made aware of what AI is, what their rights are in case AI systems make decisions about them, and what they can do when there are errors. Countries that have succeeded with AI policy have invested in public engagement alongside technical infrastructure, and Nepal must do the same. Nepal stands at a critical turning point. The National AI Policy 2082 signals that the government recognises both the opportunities and risks associated with AI. The key question now is whether this signal will be matched by adequate resources, strong institutions, and real accountability. The global landscape is evolving rapidly. India is investing billions in AI development, the European Union is advancing a comprehensive regulatory framework, and China is actively shaping global standards. The world is not waiting. For a small nation like Nepal, the window of opportunity is limited. It must act quickly to shape the development and use of AI within its own borders, rather than passively importing technologies governed by external systems and regulations. The policy is an important first step, but it must be followed by decisive action.

Shah is an IT engineer and AI researcher