Nepal finds itself at an intersection of two potent forces – a technological revolution sweeping the globe and a dramatic demographic shift. Artificial intelligence (AI) and automation, often seen as the deus ex machina of the 21st century, are making their presence in every part of our lives. This digital metamorphosis comes with its benefits and threats. While they promise to augment economic activities, they simultaneously risk displacing numerous labour-intensive jobs. This concern is acute for a country like Nepal, where remittances from its workers in the Gulf countries, a region rapidly embracing technological shift, account for almost 26% of the nation’s GDP. “Job displacement from labor-intensive industries has been taking place for several decades, as countries move to higher-value-added activities and services,” wrote Mckinsey &amp; Company in The Future of Jobs in the Middle East in 2018, adding that this will accelerate <a href="https://www.mckinsey.com/featured-insights/middle-east-and-africa/are-middle-east-workers-ready-for-the-impact-of-automation">between now and 2030 with 45% of existing work in the Middle East potentially being automated.</a>  <figure><img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20230904090952_a93aeeca5e7480559a7ada068cb22ba7247b73088349c2eedead1f35af622d81.png" data-media-id="editor_1" data-image-id="20230904090952_a93aeeca5e7480559a7ada068cb22ba7247b73088349c2eedead1f35af622d81" data-rendition-name="original" width="918" height="685" loading="lazy" alt="Tech and transition"></figure>   <figure><img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20230904090952_1b3468214a3703bdf69e5c332831d25699cd690e170d2ef7b1418fbbe19ca9f6.png" data-media-id="editor_2" data-image-id="20230904090952_1b3468214a3703bdf69e5c332831d25699cd690e170d2ef7b1418fbbe19ca9f6" data-rendition-name="original" width="676" height="305" loading="lazy" alt="ILO"><figcaption>Source: Recruitment of migrant workers from Nepal: Country Profile (ILO, 2021)</figcaption></figure>  This should be of special concern for policymakers in labour exporting countries like Nepal given the inherent <a href="https://www.mckinsey.com/~/media/mckinsey/featured%20insights/middle%20east%20and%20africa/are%20middle%20east%20workers%20ready%20for%20the%20impact%20of%20automation/the-future-of-jobs-in-the-middle-east.pdf">link between displacement potential by automation and low-to-medium levels of education and experience</a>. Workers who have a ‘high-school education or less’ are most vulnerable to the shocks associated with automation. The average automation potential of jobs requiring less than high school, or high school/some experience is more than 50%. Labour migrating from Nepal predominantly characterised by a preponderance of young unskilled labor (more than 54% of total labor migration) are most vulnerable in this displacement.  <figure><img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20230904090952_184cb0d4a71b043fa9cbc0cf102e6ceee65e43dd27e42e3d5d3befdce491525f.png" data-media-id="editor_4" data-image-id="20230904090952_184cb0d4a71b043fa9cbc0cf102e6ceee65e43dd27e42e3d5d3befdce491525f" data-rendition-name="original" width="918" height="644" loading="lazy" alt="Tech and transition"></figure>   <figure><img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20230904090952_fdb171a296445b16abb2dd9a04e2dac49a0e8d8723b7564bf232b96a4ad16f36.png" data-media-id="editor_5" data-image-id="20230904090952_fdb171a296445b16abb2dd9a04e2dac49a0e8d8723b7564bf232b96a4ad16f36" data-rendition-name="original" width="1106" height="268" loading="lazy" alt="Tech and transition"><figcaption>Source: Recruitment of migrant workers from Nepal: Country Profile (ILO, 2021)</figcaption></figure>  At the same time, Nepal with more than 60% of its population falling in the working age group is undergoing a demographic shift. Drawing upon the 2021 census data, Nepal’s annual population growth rate has decreased to 0.92% with the birth rate having dropped while life expectancy is on the rise. The World Bank data reveals that Nepal’s birth rate dropped from 31 per 1,000 people in 2000 to 20 in 2020, while <a href="https://data.worldbank.org/indicator/SP.DYN.LE00.IN?locations=NP">life expectancy</a> has risen from 63 years to 69 years during the same period. The number of people older than 60 has climbed by 2 percent points. By 2040, the <a href="https://databank.worldbank.org/source/population-estimates-and-projections">population estimates and projections from the World Bank</a> shows that the proportion of elderly population in Nepal will have increased by more than one third. These demographic forces are poised to cause a significant increase in the dependency ratio (dependent people as percent of the working age population), a challenge for an economy primarily dependent on labour remittance.  <figure><img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20230904100944_d1d3d49bf18f40fb0ec96b81bcb77ff1cbf2641896397b71868cae07fc78d131.jpg" data-media-id="editor_8" data-image-id="20230904100944_d1d3d49bf18f40fb0ec96b81bcb77ff1cbf2641896397b71868cae07fc78d131" data-rendition-name="original" width="1000" height="700" loading="lazy" alt="demographic transition"><figcaption>Source: Nepal Population and Housing Census (NSO- NPHC, 2021)</figcaption></figure>  Nevertheless, technological revolution has not only reshaped global superpowers but has also provided emerging economies with opportunities to leapfrog traditional developmental transition. Digital technology’s creative destruction could spawn new sectors of employment, that could help to harness the benefit of demographic dividend and improve the quality of life in the longer run. <a href="https://www.iids.org.np/images/publications/53e4e8a0c60bb963dfdabce67ec5fdcf.pdf">A study by the Institute of Integrated Development Studies</a> offers insightful data that underscores the significance. By 2022, Nepali IT companies had made a substantial investment of $41.26 million across the country. This investment reflects the growing confidence of stakeholders in the potential of the IT sectors. More impressively, these investments translated into staggering revenue of $515 million, showcasing the sector’s profitability, and its capacity to contribute to the national economy. As technology has made more services tradable, Nepal has the opportunity to transition from labour exports to service exports. This not only retains talent within the country but also creates job opportunities for the youth, addressing the brain drain issue. However, the trajectory isn’t as straightforward. Digital inclusion gaps, a limited capacity for innovative digital tech use, myopic labour laws, lack of data security laws, shortage of skills and IT infrastructural challenges pose substantial barriers for inclusive growth. Moreover, Nepal has grappled with governance failure and political instability that have hampered past policy implementation efforts, pointing towards a more critical systemic challenge. On one hand, IT companies seek workforce proficiency in essential areas such as UI/UX, SQL, full stack web development, python, DevOps, and automation testing.  <figure><img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20230904090956_bf93b210720350521983eeebac9d8f82458aaf26608105bd57fb32991929002e.png" data-media-id="editor_10" data-image-id="20230904090956_bf93b210720350521983eeebac9d8f82458aaf26608105bd57fb32991929002e" data-rendition-name="original" width="655" height="455" loading="lazy" alt="Tech and transition"><figcaption>Source: Unleashing IT: Advancing Nepal’s Digital Economy (IIDS, 2023) </figcaption></figure>  While on the other hand, demographic profile of Nepal shows that there are less than 2% youths in the age group 15-39 years with 10+2 or equivalent who have computing and technology as major field of study. The figure is much higher for those enrolled in management at more than 35%.  <figure><img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20230904090956_58e440ecb976281a220e2d16c26ff12c4679418957ca77c33250fbcd26792299.png" data-media-id="editor_11" data-image-id="20230904090956_58e440ecb976281a220e2d16c26ff12c4679418957ca77c33250fbcd26792299" data-rendition-name="original" width="1000" height="800" loading="lazy" alt="Tech and transition"><figcaption>Source: Nepal Population and Housing Census (NSO- NPHC, 2021) </figcaption></figure>  Viewed through a gender lens, females within this age group exhibit a strong inclination towards Education and Health/Medical Sciences. Their representation in the field of Computing and Information Technology remains strikingly low, accounting for less than 1% of the cohort.  <figure><img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2023090410090_8697f24662b6a53800810f764bb8d834b5198772b28cf29845ef23ec65bf15be.png" data-media-id="editor_12" data-image-id="2023090410090_8697f24662b6a53800810f764bb8d834b5198772b28cf29845ef23ec65bf15be" data-rendition-name="original" width="1900" height="800" loading="lazy" alt="Tech and transition"><figcaption>Source: Nepal Population and Housing Census (NSO- NPHC, 2021) </figcaption></figure>  While established <a href="https://b360nepal.com/public/putting-his-stamp-on-the-world-kiran-bhakta-joshi">digital enterprises and burgeoning startups are navigating through the talent pool</a>, they frequently encounter a significant void: a dearth of individuals possessing the requisite skills to be deemed employable. This scarcity is particularly pronounced among women, whose specific skill gaps act as a formidable barrier, constraining their full participation in the digital workforce and entrepreneurial ventures. Madhes Province, for instance, with a youthful demographic paradoxically grapples with staggering low female literacy rate (54.7%).  <figure><img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20230904100932_7b52c96ac5b03f15a358ec65d94d9485e78aba51c3f2ac8915041e98fd337779.png" data-media-id="editor_14" data-image-id="20230904100932_7b52c96ac5b03f15a358ec65d94d9485e78aba51c3f2ac8915041e98fd337779" data-rendition-name="original" width="1512" height="634" loading="lazy" alt="Tech and transition"><figcaption>Source: Nepal Population and Housing Census (NSO- NPHC, 2021)</figcaption></figure>  It is crucial to consider the <a href="https://www.nber.org/papers/w28551">unequal effects of service-led growth</a>, a phenomenon that has been observed in other developing countries like India. In Nepal, this could exacerbate existing urban-rural divides, as the evolution of informational technology may not absorb the unskilled labour from rural area that currently seeks employment abroad, particularly in the Gulf countries. It is imperative for Nepal to craft policies that are sensitive to these unequal effects. This could include investing in education and training programs that are aligned with the needs of the IT sector, bridging rural development initiatives that complement holistic service led growth, and implementing training programs that help females and individuals from underrepresented groups in the burgeoning IT sector. As the tides of time advance, we find countries steadily pivoting towards realms of higher intellectual yield—towards activities and services that demand less from the body and more from the mind. Nepal with its youthful demographic could, to some extent, harness the power of technology to spur economic growth. However, this same demographic group, given their current education levels, might not effectively complement in the aspired trajectory. Moreover, they are potentially the most vulnerable to unemployment due to automation, especially with over 54% of total labour migration being unskilled. The government faces a herculean task in turning technology into a viable solution for employment and inclusive growth. Development stakeholders in the young republic must guide this transformation with astute policymaking and strategies as we witness Nepal's demographic shift in the age of automation.” Ashutosh M. Dixit is an economist and an Australia Award Scholar with over 15 years of experience. He has worked with the National Planning Commission in Nepal and global institutions including the World Bank, UNICEF, UN-ESCAP, OECD, UNDP, and Standard Chartered.

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Tech and transition in Nepal

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108151128/636a67909c7e80680e0599e4jpeg.jpg" alt="" width="1500" height="1000"/><figcaption>Photo : MONIKA DEUPALA</figcaption></figure>Much more than today, in the next decade smartphones will become the primary means of accessing the internet in Nepal, making social media an even greater influence in society. At the same time, financial technology, AI and e-commerce will transform the economy.Already, <a href="https://www.nepalitimes.com/banner/how-nepals-media-landscape-is-being-transformed/" target="_blank" rel="noopener">96% of households in Nepal have at least one mobile phone</a> and <a href="https://www.nepalitimes.com/here-now/nepalis-are-drifting-to-digital-media/">more than half of those were smartphones</a>. A survey this year showed that nearly everyone here who accesses the internet does it through a smartphone — and almost everyone who is logged on also has a<a href="https://www.nepalitimes.com/banner/facebook-nation/" target="_blank" rel="noopener"> Facebook account</a>.Read also:<a href="https://www.nepalitimes.com/banner/so-you-want-to-quit-facebook/" target="_blank" rel="noopener">So, you want to quit Facebook?</a>, Reeti KC<a href="https://www.nepalitimes.com/editorial/face-to-face-with-facebook/" target="_blank" rel="noopener">Face-to-face with Facebook</a>, Editorial“Once you are introduced to the smartphone and the features that come along with, it is very difficult to go back, and this trend is growing exponentially,” says Madhu Acharya of Sharecast Initiative, which conducts the annual social media survey. He forecast that the digital divide between urban and rural is going to narrow in the coming decade.“More older people will be accessing the Net through smartphones, which will get cheaper,” adds Acharya. He gives the example of his father, who used to own a feature phone but switched to a smartphone to communicate with grandchildren and relatives abroad through Facebook.Read also: <a href="https://www.nepalitimes.com/here-now/nepal-is-becoming-a-nation-of-net-addicts/" target="_blank" rel="noopener">Nepal is becoming a nation of net addicts</a>, Sabina DevkotaThe trend of using the internet to access media sites is going to grow in coming years, as digital portals replace television to become the key source of national and international news for Nepalis. People will get more and more used to watching content whenever and wherever they like rather than wait for the 7 o’clock news bulletin.In terms of online finances, Sumana Shrestha of Fusemachines says that the latest algorithms will provide a larger section of the population access to financial technology in the coming decade. AI has been making progress in Nepal, and possibly the biggest change will come when the technology that digitises handwritten application forms, through Nepal’s AI Office of Civilian Requirements, will be smart enough to produce an editable document both in English and Nepali.Read also: <a href="https://www.nepalitimes.com/banner/bringing-silicon-valley-to-kathmandu-valley/" target="_blank" rel="noopener">Bringing Silicon Valley to Kathmandu Valley</a>, Sonia AwaleNepal has a wealth of software talent in information technology, and this need to be converted to work with AI, Shrestha says. Fusemachines and other AI-centred companies are already collaborating with local engineering colleges to build a critical mass of AI expertise in Nepal.Kai-Fu Lee, the former president of Google China and an AI expert, wrote the book <a href="https://www.nepalitimes.com/review/the-ai-super-powers/" target="_blank" rel="noopener">AI Superpowers: China, Silicon Valley, and the New World Order</a>. He predicts that in the coming decade a country will forge ahead if it has ‘an army of well-trained engineers and entrepreneurs, AI scientists ... with abundant data and a supportive policy environment’.‘China is able to apply skilled AI in various areas, like healthcare, finance, safety systems and systems for smart houses,’ Lee writes, adding, ‘poor countries will stagnate while the AI superpowers take off.’Read also: <a href="https://www.nepalitimes.com/here-now/can-nepal-invest-in-the-cloud/" target="_blank" rel="noopener">Can Nepal invest in the cloud?</a>, Ganesh AcharyaShrestha thinks Nepal has not done enough in AI adoption compared with other countries. “Nepal has a very young population, which means we can incorporate AI in the curriculum to reach a huge segment of the population, and we are hoping to be able to develop talents within a year or two on a mass scale. There is a tremendous opportunity for Nepal to lead and make a huge impact,” says Shrestha, who sees immediate applications of AI in the tourism industry.“Nepal can zero in on the right kind of tourist and make sure our ads and messaging is getting to them. That will increase the volume of tourists coming to Nepal and will make sure tourists have a good quality of experience,” she adds.Nepal will also have to catch up with its immediate neighbours in opening payment gateways on the Internet and promoting e-commerce. For example, China has already moved beyond phone-based payment with AI-based face recognition systems on Alipay, in which people pay their bills by scanning their faces at a checkout point without having to use their mobiles.Although online payment gateways such as eSewa and IMEPay have been established here, Nepal is still miles away from having a mature <a href="https://www.nepalitimes.com/banner/nepals-budding-e-commerce-ecosystem/" target="_blank" rel="noopener">e-commerce system</a>. The government’s 2019 Digital Nepal Framework admits: ‘The growth of e-commerce in Nepal is inhibited due to the lack of a supporting ecosystem such as limited digital payment options.’While others have already taken a leap in device-free commerce, if Nepal can at least make internet payment through mobile phones secure and convenient during the coming decade, that will already be an achievement.<h2>What do you think will be the most popular IT advancement in the next 10 years in Nepal?</h2><figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108151128/636a67949c7e80680e0599e5jpeg.jpg" alt="" width="1050" height="846"><figcaption> </figcaption></figure><figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108151128/636a67979c7e80680e0599e6jpeg.jpg" alt="" width="1050" height="846"><figcaption> </figcaption></figure><h2>The media is the medium</h2>Despite the migration of eyeballs to digital portals for news, Madhu Acharya says it is too early to declare print media dead. “People still prefer to read news holding a physical paper and there is an archival value that digital doesn’t always have,” he says.A Reuters report found that worldwide, across 38 markets, increasing concern about misinformation is undermining trust in media. Yet in Nepal, Sharecast found trust of traditional media is still high with less concern about disinformation online, especially <a href="https://www.theatlantic.com/international/archive/2019/04/india-misinformation-election-fake-news/586123/" target="_blank" rel="noopener">in comparison to India</a>. Nepalis believe they know what is and isn’t ‘fake news’, but often without verifying links and checking sources.This could hold implications for Nepali politics in the coming decade, especially in federal elections scheduled for 2022 and 2027.“The ideas that float around on social media and digital platforms are extreme,” Acharya tells us. “If politicians decide to listen to these extreme opinions and stop meeting people face-to-face, learning about them and what problems they have, then I think they will be tempted to address fake needs.”

Nepal in the decade of AI

https://www.youtube.com/watch?v=Y85epyHUvjo&amp;feature=youtu.beFor those who think that Nepal is too underdeveloped to make full use of <a href="https://fusemachines.com.np/" target="_blank" rel="noopener">artificial intelligence</a> (AI), think again. That is exactly what they used to say about computers and mobile phones in the 1990s.It may come as a surprise to many that Nepal has been gaining ground in AI, developing not only software using machine learning algorithms but producing world-class engineers. One company at the forefront is <a href="https://fusemachines.com.np/">Fusemachines Nepal</a>, which has started using industry experts to train AI students with cutting-edge technology to deliver intelligent solutions.“I wanted to see if I can contribute in bringing the best AI education to Nepal and make Nepal known around the world as one of the best sources of AI talent,” says the <a href="http://archive.nepalitimes.com/article/review/Sameer-Maskey-revolutionalizing-customer-service-through-Fuse-Machines,1069" target="_blank" rel="noopener">Nepali founder of Fusemachines, Sameer Maskey</a>, a professor at Columbia University.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108181144/636a95dd9c7e80680e05dc32jpeg.jpg" alt="" width="1500" height="1000"/><figcaption>All Photos: MONIKA DEUPALA/SONIA AWALE</figcaption></figure>This is the age of surveillance capitalism, where algorithms determine election outcomes, Siri knows what you want before you do, wearables correctly deduce the state of the heart and <a href="https://www.nepalitimes.com/banner/so-you-want-to-quit-facebook/" target="_blank" rel="noopener">Facebook</a> recognises friends.Read also:<a href="https://www.nepalitimes.com/here-now/natural-intelligence/">Natural Intelligence</a>, Duksangh Sherpa<a style="background-color: #ffffff; letter-spacing: 0.01em;" href="https://archive.nepalitimes.com/article/Nepali-Times-Buzz/outdated-laws-limited-ecommerce-hold-back-tech-industry%20,3547">Kathmandu's Silicon Alley and the Law</a>, Sonia AwaleAI simply imitates human thinking by recognising patterns in data, so that repetitive everyday work can be done by machines that learn as they go along.Nepal missed the bus on natural resource processing, manufacturing and <a href="https://archive.nepalitimes.com/article/Nepali-Times-Buzz/outdated-laws-limited-ecommerce-hold-back-tech-industry%20,3547" target="_blank" rel="noopener">information technology</a>. But experts say that training a critical mass of engineers in AI can allow the country’s economy to leapfrog and become globally competitive.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108181144/636a95e09c7e80680e05dc33jpeg.jpg" alt="" width="600" height="450"><figcaption> </figcaption></figure><figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108181144/636a95e29c7e80680e05dc34jpeg.jpg" alt="" width="600" height="450"><figcaption> </figcaption></figure><figure><img title="page-14-15d" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108181144/636a95e49c7e80680e05dc35jpeg.jpg" alt="page-14-15d"><figcaption> </figcaption></figure><figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108181144/636a95e69c7e80680e05dc36jpeg.jpg" alt="" width="600" height="450"><figcaption> </figcaption></figure>Fusemachines Director of Academic Affairs Bülent Uyaniker, who was in Nepal recently, rejects the notion that Nepal is not ready for artificial intelligence applications. “It is happening already, it is inevitable. If there can be 8<a href="https://www.nepalitimes.com/editorial/the-message-is-the-medium/">.5 million Facebook users</a> in Nepal, then it has the special conditions for AI.”Proof of this is the increasing number of software companies in Nepal using local engineering talent to work on software solutions for customers in North America or Europe. However, most of the engineers and recent graduates need training in AI to keep up with customer requirements. America alone will need 200,000 data scientists in the next five years, and most of these will come from the UK, Finland, Canada, Singapore, China and India.Which is why Fusemachines Nepal is also emphasising education. Says the head of its global operations and strategy, Sumana Shrestha: “You cannot learn AI in a one-day bootcamp, it needs intelligent mathematics, but there is a huge demand versus supply gap for engineers proficient in machine learning or other AI components everywhere.”<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108181144/636a95e89c7e80680e05dc37jpeg.jpg" alt="" width="1500" height="1000">Read also:<a href="https://archive.nepalitimes.com/article/Nepali-Times-Buzz/it-is-all-about-it-in-nepal,3887" target="_blank" rel="noopener">It's all about IT</a>, Sahina Shrestha<a style="background-color: #ffffff; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/banner/drones-to-the-rescue/" target="_blank" rel="noopener">Drones to the rescue</a>, Lucia de VriesNepal established itself as a sought after destination in the past 20 years <a href="https://archive.nepalitimes.com/article/Nepali-Times-Buzz/it-is-all-about-it-in-nepal,3887" target="_blank" rel="noopener">for outsourcing services</a> such as software and app development, website design and big data management to overseas clients, mostly due to the country’s inexpensive English-speaking workforce.This move from IT to AI will not just create jobs in Nepal, but also allow the country to <a href="https://www.nepalitimes.com/banner/drones-to-the-rescue/" target="_blank" rel="noopener">increase efficiency and productivity in the workplace</a>. General practitioners in rural hospitals will be able to make diagnoses faster so they can spend more time with patients, high-risk individuals can be identified with <a href="https://archive.nepalitimes.com/article/nation/think-pink-breast%20cancer-diagnosis-treatment,3877" target="_blank" rel="noopener">cancer screening</a>, and targeted advertising and customised itineraries will lure <a href="https://archive.nepalitimes.com/article/nation/bringing-in-two-miilion-tourists,3551">potential tourists during Visit Nepal 2020</a>.Recently, a group of engineering students developed a model to help <a href="https://www.nepalitimes.com/banner/are-you-sick-of-chicken/" target="_blank" rel="noopener">poultry</a> entrepreneurs understand fowl behaviour and the state of their animals’ health, helping them to raise the farm’s business profile.“With precision livestock farming we can generate patterns to help farmers recognise symptoms before an outbreak of a disease by implementing AI components such as image processing and deep learning,” explained engineering student Sajil Awale at Pulchok Engineering Campus. “This allows for timely intervention to prevent mass deaths and reduce losses.”Read also: <a href="http://archive.nepalitimes.com/article/Nepali-Times-Buzz/tap-and-tour%20,3638" target="_blank" rel="noopener">Tap and tour</a>, Clara BullockComputer vision (which enables computers to see and process images as humans would) can also help identify rotten fruit swiftly, and prevent <a href="https://www.nepalitimes.com/from-the-nepali-press/banned-pesticides-are-widely-used-in-nepal/" target="_blank" rel="noopener">misuse of pesticides</a> by identifying areas on the farm that require chemicals, and the amounts needed. AI can also estimate future harvests, allowing farmers time to find markets for produce.Engineers at Fusemachines Nepal are working on Nepal’s first optical character recognition (OCR) system so forms filled out with Nepali handwriting can be digitised and translated into English. This will have huge scope in Nepal’s banking, hospital and government sectors, where pen and paper continues to be the norm.Sixit Bhatta, CEO of <a href="https://www.nepalitimes.com/here-now/three-toots-for-tootle/" target="_blank" rel="noopener">ride-sharing startup Tootle</a>, says Nepal is ripe for AI applications: “Our efforts now should be on preparing for a world in which machines perform skills-oriented tasks and for humans to take on the roles that require creativity and empathy. But before that, the government should design policies that allow AI to grow, and not restrict it.”Sumana Shrestha at Fusemachines Nepal says that as long as salaries for clerical staff are low, there is less potential for AI to flourish. But she adds: “The curse of cheap labour means companies will prefer to employ people to do repetitive work. But sooner or later, AI will be here. Nepal needs to develop despite government. And the private sector needs to prepare itself for disruption.”Coming to terms with AI Artificial Intelligence: Ability of computer systems or machines to make a decision like humans, or the ability to perform tasks requiring human intelligenceMachine Learning: A subset of artificial intelligence that provides a system with the ability to automatically learn and improve from experience without being explicitly programmed, relying on patterns generated from dataDeep Learning: Machine learning that is applied on a large set of data, also known as deep neural learning that uses deep neural networks to model complicated dataNatural Language Processing: Interaction between computers and human languages, deals with programming computers to process and analyse natural (human) language, this field of AI processes, analyses, interprets and distills information from human languagesComputer Vision: Enables computers to see, identify and process images in the same way that human vision doesImage Processing: Part of computer vision that entails analysis and manipulation to find insights from a digitised imageBig Data: Extremely large data sets on which AI is applied to reveal patterns, trends and associations and make decisions<h2>Making Nepalis artificially intelligent</h2><figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108181144/636a95ec9c7e80680e05dc38jpeg.jpg" alt="" width="1500" height="990"><figcaption> </figcaption></figure>During a visit to Nepal six years ago, Columbia University professor Sameer Maskey handpicked three students from engineering schools across Kathmandu who were able to solve a mathematical equation. The three went on to become the core of <a href="https://www.fusemachines.com/">Fusemachines</a>, a global company that aims to democratise artificial intelligence (AI) through education and software solutions.Headquartered in New York, Fusemachines has since opened branches in Canada, UK and the Dominican Republic to develop intelligent software solutions that have transformed brands and businesses around the world. One of its biggest operations is in Nepal, Fusemachines employs 100 top Nepali software engineers who work on projects that use AI applications in fields ranging from telecommunications and banking to hospitals and governance.Unlike other back office companies that work on outsourced software development, Fusemachines is a school in itself, training engineers while coming up with product solutions.“We employ senior engineers and industry experts with PhDs along with upcoming engineers, who work together to solve client-specific problems though AI,” explains <a href="https://archive.nepalitimes.com/article/Nepali-Times-Buzz/share-a-ride-Kathmandu,2738" target="_blank" rel="noopener">Sumana Shrestha</a> who heads Fusemachines’ global operations and strategy. “Such collaborative approach allows young talent to continuously learn and grow.”Following Maskey’s vision, Fusemachines tries to make AI accessible to everyone through education, which is why it initially offered training fellowships and then, to meet the demand for engineers, launched AI Shikshya — a year-long, in-house training program.“With our own proprietary platform and content we have partnered with engineering colleges in Kathmandu to offer AI,” says Shrestha. “The program is a blend of online and on-site, the course material is not too academic, is industry focused and instructors are seasoned engineers up to date with new algorithms.”The company also has its own AI schools, open to professionals who want to grow their business or anyone interested. Fusemachines also offers a foundation course, open to high school graduates. A year-long, micro-degree program consisting of four major courses — including machine learning, deep thinking, natural language processing and computer vision — will be the next step.“In school we were always presented with clean data sets to work on but that is rarely the case on the job. But this year-long training program gets people ready to take on real-life problems and provide AI solutions,” says Rojesh Shikharkar, engineer at Fusemachines Nepal and a post-grad at Pulchok Engineering Campus.Apart from training, Fusemachines has given engineers who would otherwise have migrated to work in the US and Europe an opportunity to find meaningful work in Nepal.Says Shrestha: “If you create opportunities here, people might actually stay, and once we have mass education in artificial intelligence, companies here will start adopting and see the value of AI products, ensuring more opportunities at home.”

Sonia Awale

Bringing Silicon Valley to Kathmandu Valley

<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107171148/636937a99c7e80680e03fe50jpeg.jpg" alt="" width="1000" height="1014"/>Artificial Intelligence, Blockchain and Machine Learning are buzzwords we are going to hear a lot more in 2019.The Third Revolution in information technology means the country further ahead in AI will be the new global superpower. Competition is fierce between China and the United States, with both using unconventional means to get back at each other – as seen by the arrest of Huawei’s CFO in Canada under American pressure, the allegations that the security of iPhones are compromised by Chinese-made chips.In his new book AI Superpowers: China, Silicon Valley, and the New World Order, Beijing-based technology executive Kai-Fu Lee analyses the background of information technology advances in both counties, but concludes that China is moving faster on AI and could overtake Silicon Valley because of less strict privacy laws in its huge home market.Read also: <a href="http://archive.nepalitimes.com/article/Nepali-Times-Buzz/it-is-all-about-it-in-nepal,3887" target="_blank" rel="noopener">It's all about IT, Sahina Shrestha</a>Lee warns that AI could entrench global inequalities as well as disparities within countries, taking jobs away from traditional sectors. While these issues are a source of worry because of what it means for humanity’s future, China does not seem to be held back by any such fears. In fact, it is excited about catching up with the US on applications for AI in everyday life.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107171148/636937ab9c7e80680e03fe51jpeg.jpg" alt="" width="200" height="174"><figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107171148/636937ac9c7e80680e03fe52jpeg.jpg" alt="" width="500" height="637"><figcaption> </figcaption></figure>The book starts with the failure of world’s best Go player, Ke Jie, to Google’s AlphaGo in 2017. China’s IT companies fast-tracked development by imitating Silicon Valley’s most successful products and outdid them in expanding user base and profits: Uber to Didi, Google to Baidu, or eBay to Taobao. Once a product was successful, thousands of mimetic companies were spawned in China, and the Americans suspect these companies had government protection.While some argue that restrictions in China stifle creativity, Lee writes that imitation is the first step in generating new ideas and products. In order to compete with many companies with similar products, Chinese entrepreneurs fight fiercely like hungry wolves.They continuously update products to please Chinese users, change marketing strategies to compete with opponents and build the special business models based on the unique user behaviour of the Chinese.China’s central government helps businesses by investing money and provides policy support for AI research. Local governments are encouraged to build industrial parks for AI business, and the state works closely with technology companies to build new intelligent cities. On the other side of the Pacific, however, the US government is reducing its technology budget letting AI adapt to the current infrastructure.Lee says the AI algorithm is to computing what electricity was in the last technological revolution. China has the advantage of combining its huge data sets with AI applications. In the AI era, the country or company with more data can make more information decisions and thereby more profit.China’s digital infrastructure makes it possible to collect every movement of every citizen down to the last detail, erasing the boundary between online and offline. The advantage the Americans have, Lee writes, is that they can apply AI in businesses and the credit market because of its huge cache of structured trading data.Unlike American IT companies which prefer to establish a completely new product and sell it around the world, the Chinese buy local companies and support them with money, technology and marketing experience. Silicon Valley makes sure every product is perfect before launching, while the Chinese fix bugs on the go.Lee says no matter which model wins out in the next IT revolution, it is time to examine the threats to human society from an omnipotent artificial intelligence as it replaces work that needs physical and mental inputs in medicine, accounting, translations, etc.Read also: <a href="http://archive.nepalitimes.com/regular-columns/Cross-Cutting/Start-ups-need-staying-power,439" target="_blank" rel="noopener">Start-ups need staying power</a>, Ashutosh TiwariBut as people are freed up from repetitive chores, AI will also bring new job opportunities just like farmers became factory workers during the Industrial Revolution. Besides, Lee writes from his own experience with battling cancer, there are things like love and friendship that can never be replaced by a machine. Or, can it?

The AI super powers

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