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By Malik Shahzad Aslam :
Experts warn weak data systems, limited AI literacy and slow policy implementation could hinder economic competitiveness
Artificial intelligence (AI) is rapidly reshaping industries worldwide, but experts say Pakistan remains ill-prepared to harness its benefits or manage the challenges it presents. While businesses are beginning to explore AI-driven tools, the country’s limited digital infrastructure, outdated data systems and shortage of AI expertise could slow adoption and reduce its economic impact.
Analysts argue that Pakistan’s transition to an AI-powered economy will require more than access to popular tools such as ChatGPT. They say stronger data governance, better policymaking and investment in digital skills are essential if the country hopes to remain competitive.
AI adoption grows despite limited preparedness
Interest in AI has expanded significantly among Pakistani businesses and young professionals, driven by wider internet access and the availability of generative AI platforms.
Companies are increasingly experimenting with AI to automate routine tasks, improve productivity and reduce operating costs. However, many employees remain concerned that automation could threaten existing jobs, particularly in administrative and service-sector roles.
Experts note that while enthusiasm for AI is growing, awareness of its capabilities, limitations and risks remains relatively low.
Weak data infrastructure remains a major obstacle
Technology specialists say AI systems are only as effective as the data used to train and operate them.
Pakistan continues to face challenges related to fragmented databases, inconsistent record-keeping and limited data transparency across both the public and private sectors.
Industry observers warn that poor-quality data can undermine AI systems, leading to inaccurate analysis, ineffective decision-making and reduced public confidence in digital services.
They argue that improving national data collection and governance should be a priority before AI is deployed on a larger scale.
Government begins introducing AI initiatives
The federal government has started incorporating artificial intelligence into selected public services.
Finance Minister Muhammad Aurangzeb recently announced plans to use AI in tax administration to improve efficiency and reduce corruption.
Meanwhile, the Ministry of Information Technology has proposed data governance and data protection frameworks while working on initiatives to promote AI innovation and digital transformation.
Officials have also established the Pakistan Digital Authority, which is expected to support emerging technologies and strengthen the country’s digital ecosystem.
Limited data on AI usage
Despite growing interest in AI, Pakistan currently lacks comprehensive national statistics on its adoption.
The Pakistan Bureau of Statistics (PBS) does not collect dedicated information on AI usage in businesses or government institutions, and existing surveys focus mainly on general information and communication technology (ICT) access.
Experts say this makes it difficult for policymakers to understand which industries are adopting AI, how automation is affecting employment or where investment is most urgently needed.
Banking sector leads adoption
Industry experts say the financial sector has emerged as one of Pakistan’s earliest adopters of AI technologies.
Banks are increasingly investing in AI-powered customer services, fraud detection, data analysis and internal automation while hiring specialists to develop in-house AI solutions.
However, many organisations across other sectors still lack formal AI strategies, with adoption remaining limited to small-scale pilot projects.
Technology consultants also warn that many professionals using generative AI platforms remain unaware of data privacy and cybersecurity risks associated with sharing sensitive information on public AI services.
Workforce transformation expected
Artificial intelligence is expected to reshape employment patterns over the coming years.
Experts believe routine office-based roles—including data entry, customer support, compliance, finance and administrative functions—could experience the greatest disruption as AI systems become more capable.
By contrast, occupations requiring physical labour, specialised technical skills or direct human interaction are expected to be less vulnerable to automation in the near term.
Economists argue that expanding digital education and reskilling programmes will be essential to prepare Pakistan’s workforce for these changes.
Building an AI-ready economy
Technology specialists say Pakistan has an opportunity to use artificial intelligence to improve productivity, strengthen public services and support economic growth.
However, they caution against relying solely on imported AI solutions, arguing that locally developed technologies tailored to Pakistan’s languages, industries and social conditions will be critical for long-term success.
Many experts also stress that policymakers, business leaders and regulators need a deeper understanding of artificial intelligence before deploying it widely, ensuring that innovation is accompanied by strong governance, responsible regulation and investment in digital infrastructure.
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