Digital economy of Uzbekistan: The state of digital entrepreneurship and artificial intelligence

The study titled ‘Digital Economy of Uzbekistan: The State of Digital Entrepreneurship and Artificial Intelligence‘, published by UNDP in 2025, provides a comprehensive analysis of Uzbekistan’s digital transformation journey, focusing particularly on digital entrepreneurship and the artificial intelligence (AI) landscape. Here’s a detailed summary of its key findings and recommendations:

Digital economy overview

Uzbekistan’s Information and Communications Technology (ICT) sector has grown rapidly, contributing 2.1% to GDP in 2023, with IT Park playing a central role by hosting over 2,500 companies. ICT exports surged to USD 344 million in 2023, but the country still ranks low globally in ICT trade and readiness indicators (e.g., 133rd in the Network Readiness Index).

Efforts such as the Digital Uzbekistan – 2030 Strategy, with USD 2.5 billion earmarked for infrastructure, and e-government reforms have improved access, but rural digital divides, low 4G penetration, and regulatory weaknesses remain major barriers.

Digital entrepreneurship ecosystem

Uzbekistan has over 1,200 start-ups (as of 2023), mostly early-stage and concentrated in fintech. However, only 50–100 operate sustainably. Challenges include:

• Weak access to finance (VC investment reached only USD 6.3M in 2023 vs. USD 80M in Kazakhstan)
• Minimal female participation (2–5% of founders)
• Lack of a comprehensive Start-up Law
• Fragmented support and incubation systems
• Low engagement with global accelerators and corporate investors

The study outlines detailed policy proposals for a dedicated Entrepreneurship Law, including tax benefits, public procurement access, crowdfunding frameworks, and dedicated funds for innovation hubs and start-up labs.

Artificial intelligence landscape

In 2024, Uzbekistan adopted its first AI Strategy, aiming to create over 430,000 jobs and contribute USD 10 billion to GDP by 2030. The country improved its Government AI Readiness Index ranking from 87th (2023) to 70th (2024), and seeks to enter the global top 50.

Key gaps and priorities include:

• No supercomputing infrastructure (a major barrier for AI training)
• Limited data access and analytical tools
• A skills gap despite the growth in AI education (16 universities now offer AI programs)
• Businesses adopting AI slowly, with only 26% seeking external consultation

The study provides a roadmap for Uzbekistan’s updated AI Strategy, recommending the establishment of a National AI Ethics Council, regulatory sandboxes, incentives for AI R&D, workforce reskilling programmes, and international collaboration.

Comparative benchmarks and recommendations

Using best practices from countries like Germany, Spain, Nigeria, Türkiye, and Egypt, the study proposes:

• A dedicated National AI Data Strategy
• Inclusion of AI in SDG-aligned planning
• Voucher schemes, fiscal incentives, and innovation competitions
• Support for AI-for-public-good applications and cross-border infrastructure with Central Asian peers

Methodology

The study uses a mixed-methods approach:

• Quantitative data from national statistics, ITU, WIPO, World Bank, etc.
• Qualitative interviews with policymakers, businesses, educators, and intermediaries
• A targeted start-up survey capturing founders’ needs around funding, scaling, and skills

Limitations noted include data scarcity (especially for AI adoption metrics) and limited access to high-level government stakeholders.