The NEFsearch presents a comprehensive overview of Nepal’s Artificial Intelligence (AI) landscape, highlighting how the country can harness AI to drive economic and social transformation despite structural constraints. The paper argues that, by building on recent gains in digital infrastructure, policy momentum, and a growing innovation ecosystem, Nepal can expand AI adoption across key sectors such as finance, healthcare, and public services. At the same time, it underscores the need to address regulatory gaps, human capital shortages, and infrastructural limitations to ensure inclusive, responsible, and sustainable AI-driven growth.