Accelerating Pakistan’s digital economy with AI-driven business insights

Pakistani business needs the new capabilities

AI-driven insights are no longer a luxury, they are a necessity to remain competitive, responsive, and resilient in an increasingly complex global market. Strong and dependable systems, a steady internet connection that you can count on anytime and digital tools and services that grow with your needs, no matter how big or small, without these core enablers, businesses and public sector institutions alike will struggle.  To fully capitalize on the promise of Artificial Intelligence, these factors require urgent attention.

Pakistan’s digital journey has seen notable progress. Initiatives like National Incubation Centers and Special Technology Zones reflect a shift toward nurturing startups and incentivizing digital innovation. In an age where data is hailed as the new fuel of economic growth, the question is no longer whether Pakistan should adopt AI, but how fast and effectively it can be done.

AI empowers organizations by extracting actionable insights from massive, complex data sets, something traditional Business Intelligence (BI) tools cannot do at scale. This means moving beyond static dashboards to interactive, adaptive tools that offer tailored, real-time insights from all sorts of data no matter, what its source or type is. With the help of natural language processing, even non-technical business users can now ask complex data questions whenever they need it and receive meaningful, contextual answers just as they would on a search engine or AI chatbot.

Globally, businesses are already embedding AI into core decision-making processes, resulting in improved productivity, personalization, and agility. In contrast, Pakistan’s adoption is sporadic and often limited to tech-forward enterprises. Bridging this gap requires a broader cultural and structural shift- if everyday users can embrace apps like WhatsApp or TikTok, then they can adapt to AI-powered platforms, provided those platforms are intuitive and relevant.

Pakistan’s digital ecosystem is expanding, but challenges remain. Gaps in the infrastructure and digital literacy, hesitancy around cloud adoption, especially among regulated sectors are major bottlenecks. The mindset is slowly shifting, but regulatory clarity and public sector support are needed to catalyze AI adoption at scale.

The true power of AI lies in it giving relevant and actionable insights to help businesses anticipate customer behaviour, optimize supply chains, and enhance financial forecasting. But AI is only as good as the data it consumes. Trusted, integrated, and accessible data is foundational. Without it, even the most sophisticated AI models will fail to deliver meaningful results.

A compelling example of AI-driven efficiency can be seen at one of Pakistan’s local consumer goods companies. Faced with rapid data growth due to business expansion, the company needed faster, more agile insights to stay competitive. They were able to take their standard sales dashboards to the next level by empowering users to see into the future of how their product sales would be fairing, discover new factors and correlations that influence sales and also making it easy for them to interact with the data through natural language processing.  Or an oil and gas enterprise automating complex invoice processing across hundreds of vendor formats. These cases are not futuristic, they are happening now, and they are delivering tangible value in cost savings, efficiency, and strategic agility.

Only through this united front can we transform potential into progress and ensure Pakistan’s place in the global digital economy. AI offers Pakistan not just a tool for automation, but a pathway to sustainable competitiveness. The time to act is now by investing in the right foundations, Pakistan can build a future that is not only digitally advanced but also inclusive and globally relevant.

Pakistan needs an ecosystem that supports AI-driven innovation across sectors. This requires clear policies on data governance, cybersecurity, and ethical AI use. It also calls for public-private partnerships to fund research, incubate startups, and scale pilot projects. Additionally, investment in digital upskilling is crucial, particularly in postgraduate programs where academic research can directly translate into market-ready solutions.

To seize the promise of an AI-driven future, Pakistan must move decisively from intent to action, backed by data, investment, and coordinated reform. The government must lay the digital foundation through robust infrastructure, progressive regulation, and bold incentives for innovation. Despite having over 116 million internet users, Pakistan ranks 118 out of 193 countries on the UN’s e-Government Development Index highlighting a significant digital readiness gap. Targeted investment in cloud infrastructure, reliable broadband, and AI policy frameworks is critical to close this gap and attract global tech players.

Industry, meanwhile, must break free from its reliance on service-based outsourcing, which currently accounts for the majority of Pakistan’s %3.23 billion IT exports. To sustain long-term growth, businesses must transition to a product-driven model; investing in AI-powered platforms, data-driven solutions, and export-ready intellectual property that can compete in global markets. This shift is vital to increasing both the value and resilience of Pakistan’s digital economy.

I would like to quote Tim Cook, CEO, Apple, who once explained why Apple continues to manufacture in China. Contrary to popular belief, it is not because of cheap labor, but because China offers a competitive edge in precision skills, tooling, and industrial scale; capabilities that are deeply integrated across its manufacturing ecosystem. This is the level of specialization and strategic advantage Pakistan must strive for. We should not compete solely with low costs, but with differentiated skills and innovation. It is this mindset that must define the next chapter of our industrial evolution.

Academia must evolve into a crucible of research, talent, and innovation. While Pakistan produces over 40,000 computer science graduates annually, only a small fraction is equipped with advanced AI, data science, or machine learning skills. Postgraduate programmes and industry-academia partnerships must focus on applied research and commercialization, ensuring graduates are not only employable but also capable of creating transformative technologies.

Only through this united front can we transform potential into progress and ensure Pakistan’s place in the global digital economy. AI offers Pakistan not just a tool for automation, but a pathway to sustainable competitiveness. The time to act is now by investing in the right foundations, Pakistan can build a future that is not only digitally advanced but also inclusive and globally relevant.

Irfan Ahmed
Irfan Ahmed
The writer is a retired Vice Admiral of Pakistan Navy and frequently contributes on maritime issues.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Must Read