Will Developing Countries Be Left Behind In The AI Race? Cambodia's Digital Strategy | Insight

Key Concepts

• AI Divide: The gap between countries and populations with access to and ability to utilize Artificial Intelligence, and those without.
• AI Readiness: A country’s preparedness for AI adoption, encompassing infrastructure (digital & physical), skills, and policy.
• National AI Strategy: Cambodia’s plan to bridge the AI divide, focusing on collaboration, talent development, technology, digital government, sectoral promotion, and risk management.
• Digital Literacy: The ability to use digital technologies and understand their implications.
• Data Sovereignty: The concept of having control over the data generated within a country’s borders.
• Generative AI: AI capable of creating new content, like text, images, and audio.

Cambodia and the AI Divide: A Nation’s Pursuit of Digital Inclusion

Introduction

Cambodia is facing the challenge of bridging the “AI divide” – the disparity in access and ability to leverage Artificial Intelligence between developed and developing nations. While globally AI is driving a fourth industrial revolution, Cambodia, with only 1% of its population possessing advanced IT skills, risks being left behind. This summary details Cambodia’s efforts to overcome these hurdles, the obstacles it faces, and the strategies being implemented to harness the potential of AI for economic and social development.

The Global AI Landscape and Cambodia’s Position

AI is rapidly transforming industries worldwide. In China, AI-powered robots automate manufacturing; in India, algorithms write software code; and in the US and Europe, AI optimizes supply chains. Experts predict AI could add nearly $1 trillion USD to ASEAN’s GDP by 2030. However, the benefits are not evenly distributed. Countries like China, South Korea, and Singapore are “reaping digital dividends” due to their existing infrastructure and data ownership. Cambodia, with 1.8 million farming households and a developing economy, faces the risk of being unable to “catch up” due to the “pace of change” in AI technology.

Cambodia’s National AI Strategy: A Multi-Pronged Approach

Recognizing the urgency, Cambodia launched a National Artificial Intelligence Strategy in July 2023. The strategy centers around six key priorities: collaboration, talent development, technology acquisition, digital government implementation, sectoral promotion, and risk mitigation. The government acknowledges its position as a “small state” but believes it can “capture and maximize” the benefits of AI. The strategy aims to improve economic outcomes, particularly for Small and Medium Enterprises (SMEs) by automating tasks like paperwork, inventory management, and logistics, and enhancing precision in agriculture.

Challenges to AI Adoption in Cambodia

Despite the strategic vision, Cambodia faces significant obstacles:

• Digital Infrastructure: Limited network connectivity, particularly in rural areas, hinders access to AI-powered tools. A chatbot developed by university students to assist farmers with crop issues was hampered by poor internet access and farmer unfamiliarity with text-based systems.
• AI Readiness: Cambodia ranks low on Oxford Insights’ AI readiness index, positioned near Myanmar and Laos. This reflects deficiencies in both “hard infrastructure” (digital connectivity, computing power) and “soft infrastructure” (human capacity, skills development).
• Data Availability: A lack of digitized data, particularly in the agricultural sector, limits the ability to train effective AI models. Farmers still rely on manual record-keeping.
• Skills Gap: Only a small percentage of Cambodians possess the necessary digital skills. In 2020, just 30% had basic digital literacy. STEM fields are undersubscribed in universities, and retaining skilled engineers is difficult due to competition from higher-paying opportunities abroad.
• Historical Context: The Khmer Rouge regime decimated Cambodia’s educated class in the 1970s, creating a long-term skills deficit. Literacy rates remain relatively low, with 20% of adults being illiterate.
• Data Security & Regulatory Framework: Concerns about data security and the potential misuse of AI (e.g., deepfakes, scams) necessitate robust cybersecurity and data protection laws, which are currently under development.
• Energy Costs: High electricity costs (14 cents/kWh) make running energy-intensive AI systems, like data centers, expensive.

Specific Initiatives and Case Studies

• Agritech Chatbot: University students developed an AI-powered chatbot to provide farmers with real-time advice on crop health based on image analysis. However, implementation was hindered by connectivity and digital literacy issues.
• Amu Rice: Cambodia’s largest rice exporter plans to build an AI-ready facility by 2027 to optimize production, reduce defects, and improve quality control. However, the success depends on improving data collection at the farm level.
• KI (Cambodia Innovation) Laptops: The government is promoting local manufacturing of affordable laptops to increase access to technology.
• CAD (Cambodia Academy of Digital Technology): This institution is developing Khmer language processing tools (speech recognition, translation) to address the linguistic complexity of the Khmer language and overcome data scarcity. A project to create a Khmer-to-Braille translation tool is underway.
• Ax Smart Incubation Program: This program provides funding and mentorship to Cambodian startups, like the Agritech team developing the farming chatbot.
• National Data Center: A $30 million data center is being constructed with funding from Japan to provide local computing power and address data sovereignty concerns.

Addressing the Skills Gap: Education and Retraining

Recognizing the critical need for skilled personnel, Cambodia is prioritizing education and retraining initiatives:

• Scholarships: The government is offering scholarships for students to study digital technology abroad.
• Coding Heroes Program: CAD sends university students to teach digital skills in rural schools.
• AI Talent Target: Cambodia aims to train 1,000 professionals in AI, data science, and related fields by 2030.
• Reskilling Programs: The government acknowledges the need to reskill workers in industries vulnerable to automation, particularly the garment sector, which employs nearly a million people.

The Role of Investment and Policy

Cambodia attracted over $10 billion USD in investment in 2023. However, the rise of scam centers and human trafficking poses a threat to attracting further foreign direct investment (FDI). Strengthening governance and addressing these issues is crucial. The government is also exploring increasing its debt levels to fund infrastructure development, recognizing that a strong digital foundation is essential for AI adoption.

Conclusion

Cambodia’s journey to bridge the AI divide is fraught with challenges, but the government’s commitment to a National AI Strategy, coupled with initiatives to improve infrastructure, develop talent, and foster innovation, offers a path forward. Success hinges on addressing the digital literacy gap, ensuring data security, attracting investment, and proactively mitigating the potential social and economic disruptions caused by automation. As Deputy Prime Minister Chanto Sun stated, “If Cambodia doesn’t do it, then we’ll fall behind.” The nation’s future prosperity may well depend on its ability to harness the transformative power of Artificial Intelligence.