The world is embracing AI, is Pakistan ready?
Artificial Intelligence (AI) is transforming global industries at an unprecedented pace. With AI accounting for 33% of total venture capital (VC) funding in 2024 double what it was two years ago—the world is rapidly embracing AI-driven advancements. However, the question remains: Is Pakistan prepared to ride this wave?
The AI Boom and Global Shifts
- AI investment reached $110 billion globally in 2024, with China’s DeepSeek AI making significant strides.
- DeepSeek’s success led to a sharp decline in US tech stock value, wiping nearly $1 trillion off the market in a single day.
- Nvidia alone lost approximately $593 billion, highlighting the disruptive power of AI-driven innovation.
Pakistan’s AI Adoption and Business Integration
- Telecom Industry: Zong 4G has integrated DeepSeek AI’s open-source models to streamline operations and improve internal efficiencies through its AI-powered system, Zong Aeye.
- IT Sector: Major Pakistani IT export firms report that up to 30% of their solutions now incorporate AI, largely driven by global demand.
- SMEs: Many small and medium enterprises (SMEs) are leveraging AI-powered chatbots, predictive analytics for sales, and automated accounting systems to enhance efficiency.
- Challenges: Infrastructure gaps and the lack of local AI data centers continue to hinder widespread adoption.
Economic Potential and Growth Forecast
- Market Expansion: According to Statista, Pakistan’s AI market is projected to reach $949.17 million in 2025, growing at a 27.76% CAGR to hit $3.23 billion by 2030.
- Global Comparison: The US will dominate the AI market, reaching $66.21 billion by 2025.
- Economic Value: Digital transformation could generate PKR 9.7 trillion ($34.9 billion) for Pakistan by 2030 (Access Partnership, 2021).
- Google’s AI Impact: Google’s AI solutions added PKR 3.9 trillion ($14 billion) in benefits to Pakistan’s economy in 2023—a 222% increase since 2020.
- AI Awareness: Pakistan ranks fourth globally, with 76% of the population familiar with ChatGPT, according to Stanford University’s AI Index Report 2024.
AI’s Global Influence on Business
- AI is expected to contribute $15.7 trillion to the global economy by 2030—more than the combined outputs of China and India.
- AI investment remains strong, with global funding reaching $110 billion in 2024.
- Pakistan’s share in AI’s economic impact is estimated to be between $10 billion and $20 billion by 2030, signifying a massive growth opportunity.
Challenges in AI Infrastructure and Policy
- Data Storage Issues: Restrictions on storing sensitive data abroad limit AI adoption.
- Infrastructure Gaps: The absence of AI-ready data centers in Pakistan slows progress.
- Government Initiatives: Efforts to develop Digital Public Infrastructure (DPI) and digital identity frameworks are underway but require stronger public-private collaboration.
Future Prospects: Unlocking AI’s Potential in Pakistan
- The next 1-2 years will be critical for AI investment in Pakistan, with a strong need for AI-ready data centers.
- SMEs stand to gain significantly by integrating AI-driven innovations to enhance efficiency and global competitiveness.
- Policymakers, industry leaders, and tech stakeholders must collaborate to create an AI-friendly business environment.
Addressing infrastructure challenges and fostering AI adoption, Pakistan has the potential to emerge as a competitive player in the AI-driven global economy.