AI REGULATION AND POWER SECTOR INTEGRATION IN UZBEKISTAN

Starting this year, Uzbekistan’s artificial intelligence (AI) framework is moving towards sector-specific implementation, including the power sector, where AI is being introduced for forecasting, grid optimization and energy efficiency.

1. What is Uzbekistan’s AI regulatory framework?

Uzbekistan is currently in the process of developing a comprehensive legal and regulatory framework for artificial intelligence. Creation of the necessary conditions for the introduction and development of AI became a focus of state policy following the adoption of the Law of Uzbekistan No. LRU-1115 “On the Introduction of Additions and Amendments to Certain Legal Acts of Uzbekistan in Connection with the Regulation of Relations Arising in the Application of Artificial Intelligence” dated 21 January 2026 (“Law No. 1115”).

In accordance with Resolution of the President of Uzbekistan No. PR-358 “On Approval of the Strategy for the Development of Artificial Intelligence Technologies until 2030” dated 14 October 2024 (“Resolution No. 358”), the following key goals and objectives have been identified to support the successful implementation of the Strategy for the Development of AI Technologies through 2030, including the development of the regulatory and legal framework for advancing AI technologies:

  • developing and improving the laws of Uzbekistan based on international best practices;
  • creating a favorable environment for scientific research and innovation in this field;
  • introducing safety and ethical requirements.[1]

Uzbekistan has not adopted a dedicated AI law; however, AI is regulated through various laws and bylaws which establish plans and objectives for the AI development. The key legislation currently in force in Uzbekistan governing AI includes:

  • Law of Uzbekistan No. 560-II “On Informatization” dated 11 December 2003 (“Law on Informatization”);
  • Law of Uzbekistan No. LRU-547 “On Personal Data” dated 2 July 2019 (“Personal Data Law”);
  • Law No. 1115;
  • Decree of the President of Uzbekistan No. PD-189 “On Additional Measures for the Further Development of Artificial Intelligence Technologies” dated 22 October 2025 (“Decree No. 189”);
  • Decree of the President of Uzbekistan No. PD-6079 “On the Approval of the ‘Digital Uzbekistan-2030’ Strategy and Measures for Its Effective Implementation” dated 5 October 2020 (“Decree No. 6079”);
  • Resolution of the President of Uzbekistan No. PR-4996 “On Measures to Create Conditions for the Accelerated Introduction of Artificial Intelligence Technologies” dated 17 February 2021 (“Resolution No. 4996”);
  • Resolution No. 358;
  • Resolution of the Cabinet of Ministers No. 425 “On Measures for the Implementation of Priority Projects in the field of Artificial Intelligence Technologies in 2025-2026” dated 10 July 2025;
  • “Ethical Rules for the Development, Implementation, and Use of Artificial Intelligence-Based Solutions” adopted by the Order of the Ministry of Digital

Technologies of Uzbekistan and registered by the Ministry of Justice of Uzbekistan under No. 3787 dated 14 March 2026 (“AI Ethics Rules”).

In the power sector, the legal framework for the integration of AI and digitalization is primarily established by the following key bylaws:

  • Decree No. 6079, which outlines the broader national strategy for digitalization, including specific objectives for the power sector including the primary objective to establish a system of complete control over the processes of electricity production and delivery to consumers, as well as the extraction, processing, and delivery of hydrocarbon raw materials, through the implementation of information and communication technologies. The strategy also emphasizes the automation of production and management processes in industrial enterprises, including those in the power sector;
  • Decree of the President of the Republic of Uzbekistan No. PD-70 “On Additional Measures to Further Increase Energy Efficiency, Save Energy Resources and Their Rational Use in 2026” dated 29 April 2026, which outlines energy efficiency measures and specifies the use of AI for data processing (“Decree No. 70”);
  • Resolution No. 4996, which provides for application of AI technologies in forecasting the production and consumption of energy resources and optimizing the operation of technological equipment;
  • Resolution No. PR-358, which designates the energy sector as a priority area for the implementation of AI technologies. The Resolution identifies energy resource management, optimization of energy generation and distribution and the development of renewable energy as areas for AI application;
  • Resolution of the President of the Republic of Uzbekistan No. PD-74 “On Measures to Increase the Efficiency of Activities of Enterprises with State Participation and Commercial Banks” dated 25 February 2026, which mandates the introduction of a new leadership position within state owned enterprises including the introduction of the position of deputy head of the enterprise for the information technologies and AI.

2. How is AI defined under Uzbek law?

Article 3 of the Law on Informatization defines AI as “a set of technological solutions that allow for the imitation of human knowledge and skills, including independent learning and search for solutions, as well as obtaining results comparable to the results of human intellectual activity when performing specific tasks.”

3. Who regulates AI in Uzbekistan?

Key state bodies regulating AI in Uzbekistan are:

a) Ministry of Digital Technologies of Uzbekistan:

  • creates conditions for attracting investment into the AI field;
  • forms the technical infrastructure for the AI-based processing of government authorities' data;
  • organizes training, retraining and professional development of personnel in the field of AI,[2]

b) Centre for the Development of AI and the Digital Economy under the Ministry of Digital Technologies of Uzbekistan:

  • develops the regulatory and legal framework necessary for the development of AI technologies and implementing international standards;
  • creates the technical infrastructure necessary for data processing and implementing AI-based projects;
  • carries out activities aimed at improving Uzbekistan’s ranking in international AI indices;
  • develops proposals for the establishment of a “Big Data” database and ensuring its continuous expansion and development;
  • assesses the impact of digitalization processes on economic sectors and production;
  • conducts, jointly with the expert community, in-depth studies and develops proposals for the widespread adoption by government bodies and organizations of new areas and modern technologies in the fields of the digital economy and e-government;
  • develops the conceptual and methodological foundations for introducing “smart” and other advanced technologies, as well as big data processing technologies, across various sectors of the economy,

c) Coordination Commission for the implementation of Strategy for the Development of AI Technologies through 2030:

  • assesses the social and economic effectiveness of projects aimed at implementing AI technologies, as well as ensures the implementation of these projects based on the principles of transparency and competition;
  • discusses the full, timely and high-quality implementation of priority projects for the introduction of AI technologies;
  • where necessary, introduces amendments and additions to the list of priority projects for the introduction of AI technologies,

Apart from the state bodies, there is also a non-governmental, non-profit organization “Artificial Intelligence Alliance” which:

  • consolidates the efforts of government bodies, the private sector, and the academic community;
  • develops cooperation with ministries, agencies, and municipalities, as well as with leading international research centers and accelerators;
  • creates specialized media content, conducting international public relations campaigns, and carries out large-scale public awareness and outreach activities;
  • facilitates the participation of domestic organizations and specialists in international exhibitions, forums, and conferences;
  • organizes lectures and professional development sessions with the participation of international experts, investors, and entrepreneurs.

As for the power sector, during a meeting on priority tasks in the fuel and energy sector held by the President of Uzbekistan in July 2026, the President announced that a Centre for the Digitalization of the Fuel and Energy Complex and the Introduction of Artificial Intelligence Technologies would be established under the Ministry of Energy of Uzbekistan. In accordance with the announcement, the Centre is expected to analyze the ‘generation - transmission - distribution - delivery’ chain and develop alternative scenarios for the future development of the energy sector.[3]

4. What are the ethical rules for AI?

4.1. General provisions

The AI Ethics Rules is the key document defining the ethical aspects of the creation, implementation, and use of AI-based solutions as well as the rights and obligations of AI participants.

The Rules apply to AI participants, i.e., individuals and legal entities within the territory of Uzbekistan that develop, implement, or use AI technologies and systems. AI participants shall strictly comply with the requirements of the AI Ethics Rules when developing, implementing, or using AI technologies and systems.

Since the scope of the AI Ethics Rules is not limited to a certain sector, the Rules are also applicable to AI participants in the power sector.

The AI Ethics Rules establish the core rules and requirements for ensuring safety and ethical standards applicable to AI technologies and systems, as well as to AI participants, in the development, implementation, and use of AI-based solutions.

The AI Ethics Rules establish that AI participants shall not treat decisions made by AI technologies and systems as final decisions.

4.2 Ethical obligations of AI participants

The AI Ethics Rules provide for the following obligations of developers and implementers of AI technologies and systems:

  • to comply with these AI Ethics Rules;
  • to ensure that the algorithms used in AI technologies and systems are transparent and explainable;
  • to prevent potential bias in AI technologies and systems;
  • to ensure the protection of personal data and information with restricted access;
  • to provide clear information about the capabilities, limitations, and potential risks of AI technologies and systems;
  • to inform users of AI technologies and systems about the rules governing their use, including the purposes for which they may or may not be used, and to inform them that AI-based solutions or decisions may not always be accurate and that their results may be used for advisory or informational purposes;
  • to ensure the security of the software underlying AI technologies and systems;
  • to continuously improve AI technologies and systems, taking these AI Ethics Rules into account;
  • to ensure that AI technologies and systems remain subject to human oversight and human review, and that the final decision is made by a human;
  • not to use AI technologies and systems for purposes that are contrary to the law or that may cause harm to individuals, society, the state, or the natural environment;
  • to develop and make available to users of AI technologies and systems a user guide for the use of such technologies and systems.

Users of AI technologies and systems have the following obligations:

  • to comply with the rules and terms governing the use of AI technologies and systems;
  • to use AI technologies and systems properly;
  • to ensure the protection of personal data and information with restricted access;
  • not to infringe the copyright of other users;
  • to comply with these AI Ethics Rules;
  • not to cause harm to the interests of individuals, society, or the state, or to the natural environment.

5. Who bears liability for AI?

The laws of Uzbekistan do not confer legal personality or legal capacity on AI. AI technologies or systems are objects of rights, not subjects of rights. Therefore, AI technologies or systems cannot own, contract, bear obligations, be sued or be punished. Responsibility for AI-related actions rests with the relevant individuals or legal entities such as developers, implementers and users. The same approach applies to AI used in the power sector.

Article 71 of the Law on Informatization also prohibits reliance solely on the conclusions of information resources and information systems developed using AI technologies when making legally significant decisions affecting human rights and freedoms. This prohibition is intended to ensure that a human decision-maker remains involved and that responsibility for the decision can ultimately be attributed to a human.

Article 462 of the Code on Administrative Liability of Uzbekistan dated 1 April 1995[4] provides that unlawful processing of personal data using AI technologies, as well as the dissemination of such data through mass media, telecommunications networks, or the Internet, entails a fine of fifty (50) to one hundred (100) basic calculation values[5] with confiscation of the items of the administrative offence.

Therefore, for power projects, the relevant contracts shall allocate responsibility among technology providers, operators, project companies and state counterparties.

6. Are there any incentives for AI technologies in the power sector?

There are currently no incentives specifically directed at AI applications in the power sector. However, certain incentives available for AI technologies may also apply to power projects:

  • Investment Deduction under the Tax Code: under Article 308 of the Tax Code of Uzbekistan[6], a taxpayer is entitled to claim investment allowances in respect of depreciable assets, which are to be depreciated based on the asset’s original value determined in accordance with the Tax Code. The investment allowance shall be applied in the amount of twenty (20) % of the value of new technological equipment, expenditure on modernisation, technical and/or technological re-equipment of production, and/or the amount of funds allocated for the purchase of domestically produced software as part of investment projects to create information systems. This deduction may apply to any power sector company that invests in AI software and the necessary hardware, directly reducing its taxable income and lowering the cost of adopting AI technologies;

  • Temporary VAT Exemption under the Tax Code: Article 483 of the Tax Code of the Republic of Uzbekistan stipulates that until 1 January 2028, the turnover from the sale of goods/services, as well as the import of goods acquired within the framework of projects implemented fully or partially at the expense of state external debt attracted from international financial institutions (IFIs) and foreign government financial organizations, is exempt from the value added tax (VAT). The Code explicitly states that electricity, gas and heat supply projects are considered infrastructure projects. A project involving the implementation of AI in the power sector, e.g., a project to optimize the transmission or distribution of electricity using AI, may enjoy this exemption if it meets the criteria, i.e., it is implemented fully or partially at the expense of state external debt attracted from IFIs or foreign government financial organizations and implemented by budgetary organizations, state enterprises or legal entities with a state share of fifty (50) % or more;

  • Direct Public Procurement: Decree No. 189 allows, starting from 1 June 2026, to carry out public procurement for the implementation and support of AI-based information systems through direct contracts with business entities included in a special register, as well as through contracts for an amount not exceeding two and a half thousand (2,500) basic calculation values. The Decree also allows, starting from 1 January 2026, the state bodies and business entities to directly procure graphics processors through official distributors of manufacturing companies. These provisions simplify and streamline the creation of the technical base for AI projects including in power infrastructure.

7. How is AI being integrated across the power sector?

AI and digital technologies are being integrated across the power sector of Uzbekistan with specific legislative mandates for each power sector component:

  • Generation: Under Presidential Resolution No. PR-163 dated 1 May 2026 “On Urgent Measures for Further Development of the Hydropower Sector” the President has mandated prevention of emergency situations in the management of hydraulic structures through the digitalization of generation and the widespread introduction of AI technologies in the sector. Thus, AI technologies are to be used to optimize the efficiency and management of hydroelectric power plants;

  • Transmission and Distribution: Decree No. 6079 addresses the automation of generation and management processes in industrial enterprises including in the power sector and provides for the implementation of Enterprise Resource Planning (ERP), Manufacturing Execution Systems (MES) and Supervisory Control and Data Acquisition (SCADA) systems. The Decree states that the software component of these technologies and AI shall be localized through public-private partnerships by 2027, whilst the hardware component shall be localized by 2030. In addition, Decree No. 6079 provides for integration of the energy management system (EMS) and related information technologies in JSC “National Electric Grid of Uzbekistan” (state-owned power transmission operator) and automation of management and production processes through the ERP system in JSC “Regional Electric Networks” (state-owned power distribution operator);

  • Energy Consumption: Decree No. 70 instructs the National Agency for Energy Efficiency under the Cabinet of Ministers of the Republic of Uzbekistan and the Ministry of Digital Technologies, to introduce, by 1 October 2026, the practice of analysing energy consumption and energy efficiency indicators at the facility level, using big data, business intelligence and AI technologies. The provision is intended to support the identification of consumption patterns and inefficiencies and the optimization of energy use through AI.

8. What current projects illustrate AI’s role in Uzbekistan’s power sector?

A main initiative for the power industry is the establishment of the aforementioned Centre for the Digitalization of the Fuel and Energy Complex and the Introduction of Artificial Intelligence Technologies under the Ministry of Energy of Uzbekistan which is aimed to analyze the “generation – transmission – distribution – delivery” chain, identify energy losses and enhance planning in the energy sector.

In addition, the development of AI-intensive infrastructure such as data centres is relevant to the power sector. A notable example is the DataVolt project which involves the establishment of a 500 MW data centre powered by green energy within the “IT Park” complex. This project is relevant for the power sector as AI and digital infrastructure requires reliable electricity supply.

                                                                                      

Authors

Madina Hamidova, Counsel/PPP&PFI

[email protected]

Asamatdin Kuljanov, Associate/PPP&PFI

[email protected]

[1] Section 3 of Annex No. 1 to Resolution No. 358.

[2] Article 6 of the Law on Informatization.

[3] “President Outlines Priority Tasks to Improve Management and Strengthen Accountability in the Energy Sector”, the official website of the President of the Republic of Uzbekistan.

[4] Code on Administrative Liability of the Republic of Uzbekistan.

[5]Basic Calculation Value is a value used to calculate taxes, fees, fines, state duties and license fees in Uzbekistan which currently equals to UZS 440,000.

[6] Tax Code of the Republic of Uzbekistan.