ISLAMABAD — Artificial intelligence (AI) is rapidly transforming Pakistan’s corporate landscape, shifting from experimental adoption to a strategic necessity as businesses embrace digital transformation to remain competitive in a changing global economy.
Manchester United Rise to Third as Sesko Strikes; Tottenham’s Relegation Worries Deepen
What began as limited experimentation by a handful of technology-driven firms has evolved over the past decade into a wider movement supported by government policy and increasing private-sector investment. Today, AI is becoming an essential component of corporate strategy across multiple industries.
A key milestone in Pakistan’s corporate AI journey came in 2017 when Pakistan Telecommunications Company Limited partnered with Afiniti to deploy behavioural pairing technology at scale. The system used artificial intelligence to match customer calls with suitable agents, significantly improving sales performance and service outcomes. Afiniti’s development presence in Karachi and Lahore also highlighted the country’s growing pool of skilled technology professionals.
The ecosystem continued to develop through institutional initiatives. The Presidential Initiative for Artificial Intelligence & Computing, launched in 2018, aimed to equip students and professionals with advanced digital skills, while the National Centre of Artificial Intelligence began producing research-driven talent for industry needs.
During the early years, however, adoption remained largely experimental. Industry experts noted that limited access to clean and structured data slowed the scaling of AI solutions across businesses.
Momentum accelerated significantly in 2025 as policy frameworks strengthened. The government enacted the Digital Nation Pakistan Act, establishing the Pakistan Digital Authority to coordinate national digital initiatives. This was followed by the approval of the National Artificial Intelligence Policy 2025, introducing a six-pillar framework designed to expand AI adoption nationwide.
The policy push gained further traction during Indus AI Week in February 2026, where Prime Minister Shehbaz Sharif announced a $1 billion investment plan for AI development by 2030. The initiative includes funding for 1,000 PhD scholarships and training programs aimed at equipping one million non-IT professionals with advanced technology skills.
Business sentiment reflects growing confidence. According to the Business Confidence Index released by the Overseas Investors Chamber of Commerce and Industry, overall business confidence rebounded sharply in late 2025, with 43 percent of member companies already adopting generative AI. Additionally, 81 percent expect AI to manage key business operations in the near future, signaling a shift from experimentation to full integration.
Market analysts project strong growth across sectors including financial services, healthcare, retail, and manufacturing. Investment activity in fintech has intensified, with VEON Group announcing a $20 million investment in Mobilink Bank, while global investment collective Epic Angels backed Karachi-based fintech startup Neem. Venture capital firm Gobi Partners is also preparing to launch a $50 million Techxila Fund II targeting high-growth technology sectors.
Digital payment infrastructure has played a critical role in enabling AI adoption. Pakistan’s instant payment platform Raast has expanded to 48 million users and integration with 53 banks, supporting the government’s push toward affordable digital transactions.
Global technology firms are also expanding operations in Pakistan. German software giant SAP is promoting its cloud-based AI solutions, including enterprise platforms designed to help businesses transition toward AI-driven operating models — a sign of increasing market maturity.
Despite strong progress, challenges remain. Experts highlight gaps in AI infrastructure, limited access to advanced computing resources, funding constraints beyond academia, and a persistent skills shortage. Analysts warn that without greater focus on original research and algorithm development, Pakistan risks remaining an adopter rather than an innovator in artificial intelligence.
