IIASA researchers strengthen cooperation with Kyrgyzstan on AI and industrial development

Komendantova and Erokhin’s work examines how public policy can help Kyrgyzstan’s producers use AI to improve productivity, with a focus on the practical conditions for adoption. Access to reliable data, finance, technical expertise, and training is particularly important for smaller enterprises, which may struggle to develop these capabilities independently.

The researchers have brought these questions into policy discussions in Kyrgyzstan, including the Discussion Economic Club’s meeting on state support for the production sector, held on 9 June 2026. The meeting was jointly organized by the Ministry of Economy and Commerce of the Kyrgyz Republic, the National Institute for Strategic Initiatives under the President of the Kyrgyz Republic, and the Research Institute of Economics at the Kyrgyz Economic University named after M. Ryskulbekov.

In September, Komendantova and Erokhin continued to share this work through their contributions to the XI Kumskov Readings at the Kyrgyz-Russian Slavic University on 10 September and the Science Tech 2026 international conference in Bishkek on 18 September. These events provided opportunities to discuss the role of state support for AI with researchers, policymakers, businesses, and international partners working on industrial modernization and innovation.

The research shared at these events was developed with Marat Usupov, adviser to the director for international development at the Research Institute of Economics of the Kyrgyz Economic University named after M. Ryskulbekov. The study “State Support for Artificial Intelligence in the Production Sector as a Factor of Economic Growth in the Kyrgyz Republic” draws on international evidence and the characteristics of Kyrgyzstan’s economy to identify priorities for applied AI. It focuses on agriculture and irrigation, energy and electricity networks, and the textile and garment industries, examining how targeted public support could help producers test suitable technologies and assess their economic value.

The applications are closely tied to everyday production needs. Intelligent irrigation systems could help farmers manage water more efficiently, while image analysis could support the diagnosis of plant diseases. In electricity networks, AI could assist with forecasting demand and detecting faults. Textile and garment producers could use machine vision to identify defects and improve quality control. The study proposes testing these applications under local conditions, with their value assessed through changes in water use, supply interruptions, product quality, and other operational measures.

Making these technologies accessible to small and medium-sized enterprises is a central policy concern. The research considers shared services, such as quality-control facilities used by several textile producers, as a way to reduce individual costs and build sectoral expertise. It also proposes support for assessing firms’ digital capabilities, preparing data, training staff, and evaluating pilot projects. An implementation center involving universities, technology parks, and industry associations could help businesses select appropriate solutions and apply them in practice.

The analysis emphasizes that these measures require careful design. Weak data, limited institutional capacity, and insufficient training can prevent investment in AI from delivering useful results. Energy requirements and changes in employment and skills also need to be considered. The authors therefore recommend linking public support to agreed production outcomes, including lower losses and downtime, fewer defects, and more efficient resource use. Pilot projects would be evaluated before wider adoption, with continued support depending on demonstrated results.

This focus on implementation follows earlier IIASA cooperation with Kyrgyzstan on sustainable industrial development. In 2018, IIASA worked with the United Nations Industrial Development Organization (UNIDO) and the country’s State Committee for Industry, Energy and Subsoil Use on a strategic foresight initiative. Economic analysis, stakeholder interviews, and regional consultations in Bishkek, Osh, Karakol, and Jalal-Abad informed scenarios and recommendations for industrial development. The work contributed to Kyrgyzstan’s industrial development strategy for 2019–2023 and its accompanying action plan, adopted in September 2019.

The foresight study received further recognition in 2025, when it was featured in a joint report by the International Science Council and the UN Futures Lab on futures thinking in the Global South. The contributions in 2026 continue this cooperation by examining how AI can be incorporated into industrial policy and adapted to the needs and capabilities of Kyrgyz producers.