Mongolia stands at a pivotal moment in its digital development. The country’s first Artificial Intelligence Landscape Assessment (AILA), conducted with UNDP, places Mongolia at the “Systematic” readiness stage with a score of 3.0/5. While digital infrastructure and policy foundations are in place, the assessment highlights gaps in innovation capacity, public sector skills, and cross-sector data integration—all of which shape the pace and quality of AI adoption.

Mongolia has strengthened e-government services and introduced key regulatory instruments, including personal data protection and cybersecurity laws. Yet institutional capacity for AI remains limited: the innovation ecosystem scores 2.6, and public servant AI-related skills score 1.9, underscoring the need for significant human-capital development.

To address this, the Government has launched the National Initiative for Developing AI Knowledge and Skills (2026–2028). Anchored in the “Digital First” policy and aligned with the national AI and Big Data strategy, the program aims to train 60,000 public servants, 10,000 workers in vulnerable sectors, and 1,000 student “AI Ambassadors.” The curriculum—developed with Oracle Academy and Oracle University—covers both technical and non-technical competencies and will be delivered through hybrid models to reduce the rural-urban digital divide.

The initiative is backed by a multi-stakeholder governance model involving the Prime Minister’s Office, line ministries, UNDP, and private partners, mirroring successful approaches seen in Malaysia, Korea, and Singapore. It also places strong emphasis on inclusivity, seeking to ensure that AI-driven transitions do not widen socioeconomic disparities.

Looking ahead, Mongolia’s success will depend on sustained funding, strong inter-governmental coordination, and effective integration of trained workers into real-world AI projects. The shift from assessment to implementation marks a period of strategic acceleration, testing whether Mongolia can build the institutional discipline, ethical safeguards, and talent pipeline needed for a responsible and resilient AI ecosystem.

Key Questions Emerging from the Initiative

As Mongolia accelerates its national AI agenda, several strategic questions arise:

• Should government agencies remain the primary implementers of e-government and AI-enabled services, or should more functions be opened to competition?
• What are the implications of having most national data infrastructure and datasets held—and governed—by the state?
• Would a more innovation-driven regulatory environment, one that actively welcomes private-sector participation, deliver better efficiency, resilience, and technological progress?

Why It Matters for Mongolia’s Capital Market?

Mongolia’s AI readiness agenda has direct implications for capital-market development. By strengthening institutions, enhancing data governance, and expanding digital capacity across the economy, the reforms improve the country’s long-term investment proposition. Over time, the AI initiative is likely to:

• Improve transparency and data quality, reinforcing sovereign and corporate credibility.
• Expand the pipeline of investable companies, especially in fintech, digital services, and AI-enabled sectors.
• Boost productivity and earnings growth, supporting stronger valuations.
• Enhance macroeconomic stability and rating resilience through better data-driven policymaking and governance.

In sum, Mongolia’s emerging AI strategy could become a structural tailwind for capital-market development, provided implementation remains coherent, inclusive, and supported by strong regulatory oversight.