AI REGULATIONS IN MONGOLIA

Mongolia is standing at a crucial crossroads in its digital transformation journey, with artificial intelligence (AI) taking centre stage as a key element of its strategy to promote inclusive growth and technological progress. The government, working hand in hand with international partners, is setting up a solid regulatory framework to tap into AI’s potential while also tackling its challenges. This blog delves into Mongolia’s changing AI landscape, the regulatory steps being taken, and the collaborative efforts that are shaping its future.

Mongolia’s readiness for digital advancement, as detailed in the National Digital Strategy Primer, showcases the country’s ability to harness AI for both economic and social development. With a young population over 70% under the age of 40, and a high literacy rate, Mongolia is in a great position to embrace AI technologies. However, there are significant hurdles to overcome, especially regarding digital access in rural areas and ger districts. Only 80% of the population has reliable electricity, and for the 30% living below the poverty line, internet affordability is a real concern. These challenges highlight the urgent need for inclusive policies that guarantee fair access to AI-driven solutions.

The Mongolian government is making some exciting moves to weave AI into its national plans. In 2024, the Ministry of Digital Development and Communications (MDDIC) teamed up with the United Nations Development Programme (UNDP) to kick off the National AI Strategy. This initiative is all about putting Mongolia on the map as a regional AI leader by honing in on education, infrastructure, and ethical governance. A big part of the strategy is about building capacity, with a goal to train 25% of teachers in digital literacy by 2025 and roll out coding boot camps to nurture local AI talent. These initiatives tie in nicely with the Digital Readiness Assessment, which highlights human capital as a key driver for Mongolia’s digital economy.

While the regulatory frameworks for AI in Mongolia are still getting off the ground, they’re evolving quickly. The government is focused on creating a “friendly environment for businesses” through flexible regulations. For example, the Pathways for Prosperity Commission suggests using regulatory sandboxes to experiment with AI innovations without hindering growth. This is especially important for start-ups, which often struggle with funding – there are only a few venture capital funds operating in Mongolia. The National AI Strategy also includes plans for tax incentives aimed at boosting AI research and development (R&D), with the hope of attracting international investment and igniting domestic innovation.

Ethical considerations are at the heart of Mongolia’s AI regulations. The reforms supported by UNESCO to enhance media freedom laws include measures to tackle AI-generated disinformation, reflecting global worries about AI misuse. Moreover, the Digital Strategy Primer calls for a national cybersecurity framework to tackle vulnerabilities, as Mongolia currently ranks 85th on the Global Cybersecurity Index. The upcoming Data Protection Law, set to roll out in 2025, will lay down guidelines for ethical AI use, ensuring transparency in algorithmic decision-making and protections against bias. These steps are crucial for fostering public trust especially in sectors like healthcare and education.

International collaboration plays a crucial role in shaping Mongolia’s approach to AI regulation. The German Development Agency (GIZ) is helping Mongolia modernize its judicial system by integrating AI tools that boost transparency and efficiency. On a similar note, the partnership with UNDP aims to harness AI for sustainable development, utilizing predictive analytics to enhance resource management in key sectors like mining and agriculture both of which are vital to Mongolia’s economy. These efforts reflect Mongolia’s desire to strike a balance between fostering innovation and implementing necessary regulations, ensuring that AI contributes to the greater good of society.

However, there are still hurdles to overcome. The Digital Readiness Assessment highlights a disconnect between the education system and the needs of the labour market, with employers noting a three-year gap in the readiness of graduates for tech positions. Tackling this issue will require not just updates to the curriculum but also ongoing learning opportunities to help workers adapt to changes brought about by AI automation. Additionally, the absence of a cohesive data governance framework is a barrier to effective AI implementation. The National AI Strategy suggests creating an open-data platform to encourage innovation, but its success will depend on addressing infrastructural and bureaucratic challenges.

Looking forward, Mongolia’s AI regulations will need to carefully balance innovation, inclusivity, and ethical considerations. Given the country’s small domestic market and dependence on global technology imports, it’s essential to develop policies that nurture local AI ecosystems while adhering to international standards. The Digital Strategy Primer envisions a “digitally inclusive society”, where AI helps bridge the gap between urban and rural areas and empowers marginalized communities. Achieving this vision will demand ongoing investment in connectivity, education, and flexible regulatory frameworks.

In short, Mongolia’s approach to AI regulation reflects its greater digital ambitions finding a balance between embracing new technology and ensuring inclusive governance. By emphasizing ethical guidelines, developing international partnerships, and investing in human capital, Mongolia is positioning itself for AI to drive sustainable growth. With the National AI Strategy moving forward, its success will rely on the government’s ability to convert visions into reality, ensuring that each and every Mongolian can benefit from AI in this digital age.