Amir Saeed

Pakistan’s conservative approach to development and adoption of Artificial Intelligence risks stifling innovation and jeopardising the growth of the country’s technology sector. Talking to WealthPK, Mohsin Junaid, a researcher at Pakistan Institute of Development Economics (PIDE), highlighted that digital transformation and AI were playing a major role in shaping the world economy. “From automating industries to enhancing healthcare and education, AI has proved to be a powerful growth driver.”

“However, Pakistan’s conservative approach to AI development and adoption may undermine the country’s ability to compete on the global stage. The reluctance to fully embrace AI could have far-reaching implications for the nation’s tech sector, stalling progress and limiting opportunities for innovation,” warned Junaid. He lamented that a conservative approach to AI may have serious repercussions for development and adoption of AI-powered solutions in various industries at a time when businesses are increasingly relying on the tool to improve efficiency, optimise operations and offer more personalised products and services. “As AI continues to drive advancements in sectors like finance, healthcare, retail and transportation, the failure to integrate AI into business practices could result in Pakistani companies falling behind their international counterparts,” he cautioned.

“The country’s cautious approach to AI may discourage international investment in the IT sector and restrict local companies. Investors are drawn to countries that foster an innovative and progressive environment for technological growth,” Junaid pointed out. “When governments implement restrictive or overly cautious policies, investors may perceive these countries as high-risk with limited potential for long-term returns. If the country continues to adopt a conservative approach, it risks losing out on vital foreign investment, which is essential for the growth of its tech sector and its overall economic development,” the PIDE researcher noted. He further said that this lack of investment could also contribute to a talent drain, as skilled professionals in the AI field may seek opportunities in more progressive markets.

“With a growing demand for AI expertise globally, the country’s AI professionals may be drawn to countries where the technology is embraced and where there are more opportunities for career growth.” “The local IT ecosystem would be further depleted by this brain drain, depriving the country of the talent required to develop its AI-powered sectors or take part in global AI initiatives. Moreover, it could limit the country’s capacity to leverage AI to tackle pressing challenges such as poverty and lack of quality healthcare and education,” he added. Talking to WealthPK, Anees Amin, Chief Executive Officer of TechScape Private Limited, said that the significant challenge the country faces in adopting AI is the limited access to AI-powered tools and services.

“Though AI technologies are becoming more widely available globally, the country’s tech infrastructure is still developing, and there are few institutions with updated, internally consistent datasets necessary to support AI.” “The lack of access to these tools further inhibits the ability of businesses and governments to implement AI solutions, making it difficult for the country to capitalise on the technology’s transformative potential. This infrastructure gap could leave the country isolated from the AI revolution and hinder its ability to participate in regional AI initiatives,” Amin noted.

He lamented that a conservative AI approach could prevent the country from developing its AI-powered industries such as robotics, autonomous vehicles or smart cities. “These sectors have the potential to transform economies and provide millions of new jobs.” “By not promoting the right environment for AI to thrive, the country may miss out on the chance to become a regional leader in these emerging sectors. The failure to create and support AI-driven industries could also limit the country’s prospects for economic diversification and technological innovation.”

Credit: INP-WealthPk