The 2025 World Economic Forum Annual Meeting took place in Davos, Switzerland from January 20-25. To Mongolia, this year’s theme – “Collaboration for the Intelligent Age” – aligns with its digitalization, technological, and investment goals. On the sidelines of Davos, Mongolia signed multiple Memorandum of Understandings (MOU) and agreements to expand and diversify Ulaanbaatar’s economic and business partnerships particularly in the fields of digitalization, artificial intelligence (AI), and renewable energy.
Today in many industries, the development and utilization of AI is almost unavoidable. As leading tech industries in both developed and developing countries pour millions in investment into the global AI race, private and public entities have grown exponentially in this specific space and are seeking major investments. What could this mean to developing countries like Mongolia is that the development and the assimilation of AI is coming more quickly than policymakers can formulate policies to support, manage, and mitigate these newer innovations.
At Davos, Mongolia showed the world that it is not getting left behind. According to the Ministry of Digital Development, Innovation, and Communications, “Mongolia will officially announce its ‘National Strategy for Artificial Intelligence’ to the world in February.”
From government services and businesses, Mongolia’s tech-savvy young generation demands constant innovation, keeping pace with the rapidly changing tech world, and digitalization.
According to Oxford Insight’s 2024 Government AI Readiness Index, Mongolia ranked 98th out of 188 countries – advancing 11 positions in comparison to the previous year. In the last five years, Mongolia has made tremendous efforts in technological advancement in AI, digitalization, and even launching its own satellite station with global partners.
The emergence of the AI sector itself has become an important element in Mongolia’s economic and third-neighbor partnerships. As Ulaanbaatar promotes and expands AI and space related partnerships, Mongolia is seeking investments and reliable partnerships to develop its critical minerals and become a player in the global supply chain for these industries.
While developing and exporting critical minerals will still keep Mongolia’s economy dependent on the mining sector, learning to maximize use of AI and creating global partnerships that can invest in human capital are more important. Bolor-Erdene Battsengel, the former vice minister of digital development who recently founded the AI Academy Asia, highlighted the need to educate and train the younger generation in AI. Bolor-Erdene told CNN that her academy “aims to train 500 teachers to provide AI education to rural communities in Mongolia.”
In addition to expanding partnerships in AI, on the sidelines of Davos, Mongolia signed an MOU with Envision Energy, a global renewable energy already contracted to operate in Ulaanbaatar. In November 2024, Envision Energy was contracted to build Ulaanbaatar’s first battery storage station, using domestic capital. An expanded MOU will help accelerate Mongolia’s energy transition, decarbonization, and green workforce development.
At Davos, Mongolia was represented by Dorjkhand Togmid, the deputy prime minister, who is also the chairman of the National Committee on Energy Reforms. Dorjkhand told reporters attending Davos that Mongolia is committed to the energy transition and is willing to partner with global technology leaders in pursuing climate investment projects. Highlighting Mongolia’s partnership with Envision, he said, “Envision’s track record and solutions will enable us to maximize the potential of Mongolia’s renewable resources and build a sustainable energy infrastructure that benefits the region.”
Also at Davos, Mongolia and the European Bank for Reconstruction and Development (EBRD) signed a collaboration agreement that see them cooperate on solar, wind, and energy storage projects. Key initiatives under the deal include technical support, feasibility studies, and comprehensive environmental assessments for hydroelectric powerplants. The goal is to construct and commencement of up to 300 megawatt (MW) of solar power plants and 200 MW of wind power plants with energy storage, including transmission infrastructure, by 2028. In 2024, the EBRD provided 264 million euros for projects in Mongolia.
The Mongolian government’s goal to achieve “sustainable economic growth, energy security, and development of green industries” is a long-term ambition, but leaders are starting now with the assistance of Mongolia’s global partners, who can provide both funding and know-how.
At the 2025 World Economic Forum, Mongolia’s delegation pursued opportunities to attract investment in all things AI, including education, training, and the development of AI in businesses and government services. But it remains a challenge to attract and allocate investments toward Mongolia’s digital sector and reduce the digital divide. The successful implementation of these newer initiatives and AI-related engagements will no doubt diversify Mongolia’s mining-dependent economy and will have immense impact on its human capital.
