Bhutan’s Student-Led AI Startup Secures Major Clients, Faces Scaling Challenges Amid Infrastructure Limitations

Bhutan’s first AI startup, NoMindBhutan, is run by seven college students and has secured prominent clients, but faces challenges scaling due to the country’s limited infrastructure.

Key players: College students taking on the AI industry; NoMindBhutan was founded by Ugyen Dendup and Jamphel Yigzin Samdrup, two sophomores at Gyalpozhing College of Information Technology, which recently revamped its curriculum to focus on AI and data science:

• The seven-member team, all college students, operates out of their dorm room and rented spaces during college vacations, putting in long hours to balance their startup work with classes and assignments.
• The college has played a crucial role in NoMindBhutan’s success by providing guidance, mentorship, and industry connections through its faculty, which includes experts from Singapore.

Impressive client roster despite early stage; Despite being a nascent startup, NoMindBhutan has already secured contracts with eight high-profile clients, including major banks, the national airline, and government entities:

• Landing Bhutan National Bank as their first client significantly boosted NoMindBhutan’s credibility and led to more business opportunities.
• NoMindBhutan’s chatbot services start at 8,000 ngultrum ($96) per month, and they currently have 150,000 ngultrum ($1,799) in the bank, with more revenue pending from clients.

Infrastructure limitations hindering growth; While NoMindBhutan has proven its ability to innovate and attract clients, Bhutan’s closed digital ecosystem and lack of robust infrastructure pose significant challenges for the startup’s ability to scale and introduce its products to a wider audience:

• Bhutan has only one small government-run data center, and the country lacks access to major international payment platforms and cloud servers, making it difficult for NoMindBhutan to host and manage its AI models cost-effectively.
• Experts caution that Bhutan should focus on investing in cloud computing infrastructure and enhancing AI literacy for existing businesses, rather than solely emphasizing student-led AI innovation.

Looking ahead: Expansion plans and ecosystem evolution; NoMindBhutan remains committed to advancing AI in Bhutan and has launched new products like an AI tutor and an enhanced chatbot, but the broader ecosystem needs to evolve for the country to truly benefit from AI:

• The startup is developing a new chatbot version that will give clients more control over training and management.
• For Bhutanese AI startups to succeed globally, they need to offer distinctive value propositions and overcome the country’s infrastructure limitations.
• As more student-led AI startups emerge from Gyalpozhing College, Bhutan will need to balance supporting their innovation with investing in the necessary infrastructure and digital ecosystem to enable their growth.

Analyzing deeper: NoMindBhutan’s story highlights both the potential for AI innovation in Bhutan and the significant challenges that startups face in a country with limited digital infrastructure and global integration. While the founders’ determination and their college’s support have enabled them to secure impressive clients early on, scaling their products to a wider audience remains an uphill battle. As Bhutan looks to foster a thriving AI industry, it will need to invest not only in educational initiatives like those at Gyalpozhing College but also in building out the necessary physical and digital infrastructure to support these startups’ growth. Additionally, finding the right balance between nurturing student-led innovation and supporting the adoption of AI among existing businesses will be crucial for Bhutan to truly harness the potential of this transformative technology.