At an AI conclave held at Kathmandu University, experts emphasized building responsible AI systems based on local data, values, and language.
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Discussing how AI is impacting Nepal's public services, education, health, and financial sectors, Balkrishna Bal, Associate Dean of the School of Engineering at Kathmandu University, has said that Nepal needs to develop responsible AI technology that understands indigenous needs, local languages, and contexts instead of imported models. If this is not done, he believes that AI could further widen the digital divide between developed and developing countries, as well as between rural and urban areas.
At the ‘AI Conclave 2026’ organized at Kathmandu University in Dhulikhel, Professor Bal opined that AI is now not just a technical subject but a social and political system. Delivering his keynote address on the third day of the conclave organized by the university’s AI Club, on Wednesday, Prof. Bal emphasized that Nepal needs an AI policy that understands our environment, unlike Europe’s.
‘Should we choose AI that is responsible and suitable for our environment or rely on imported systems that increase inequality? This is our main challenge,’ said Professor Bal, ‘Earlier it was said that technology is neutral, but AI is not. It reflects the data we collect and our values. Therefore, AI is not just a technical system but also a social and political system. We need to create a system that understands our values, local context.’
While AI has helped speed up public service delivery and curb corruption, the main thing is to win the trust of the people, said Prof. Bal. ‘Most of the time, how AI makes decisions is a mysterious ‘black box’,’ he said. ‘If AI makes a wrong decision, there should be a place to complain.’ He pointed out that AI systems need to be explainable, testable and democratically regulated.
When using AI, especially in the finance and education sectors, Prof. Bal suggests avoiding ‘algorithmic bias’ and prioritizing local language and context. While AI has the potential to help prevent fraud in digital payments and provide financial access to people in rural areas, Prof. Bal warned about the risk of biased decisions. Similarly, he said that AI should not replace teachers but empower them and that ‘AI literacy’ should be increased rather than ‘AI dependency’ among students.
He analyzed that the main problems in a developing country like Nepal are lack of local data, dependence on foreign platforms, and weak regulatory capacity. The government has already formed an AI Regulatory Council and work is underway to formulate AI guidelines, Prof. Bal informed. He is also an expert member of the council.
