Artificial Intelligence (AI) is no longer science fiction. AI is slowly but surely embedding itself in our daily lives. But what does this really mean for businesses, individuals, and the broader economy—especially in a developing market like Pakistan?
What is AI and why all the hype?
AI is the ability of machines to perform tasks that usually require the human brain—like learning, reasoning, problem-solving, and interacting with humans. According to the World Economic Forum, AI is achieved through a variety of models, such as machine learning, deep learning, natural language processing, and computer vision. Importantly, AI today largely refers to systems that advance statistical predictions and automate complex processes.
As per UNESCO, “AI is enabling the development of invaluable services and taking part in more and more aspects of our lives. Built from data, hardware, and connectivity, AI allows machines to mimic human intelligence such as perception, problem-solving, linguistic interaction or creativity. These technologies contribute to achieving the 2030 Agenda for Sustainable Development.”
While there is much excitement—and some fear—about robots/machines taking over, the reality is that most benefits today come not from “super-smart” machines but from focused, practical AI solutions that do one thing very well. Successful companies don’t chase grand dreams of replacing humans overnight. Instead, they incorporate AI step by step into their systems. This solves specific problems and makes day-to-day operations easier and more productive.
Types of practical AI
According to the Harvard Business Review article (HBR), ‘Artificial Intelligence for the Real World’ by Thomas H. Davenport and Rajeev Ronanki, businesses use AI mainly in three ways:
- Automating Routine Processes
AI handles repetitive, rule-based tasks—like sorting, data entry, and customer query handling. Pakistani telecom companies are using AI to automate customer support operations, which results in reduced waiting times and lower costs. According to the case study titled, AI Automation in Pakistan, “Customers appreciate the 24/7 availability and quick response times, while we’ve reduced our customer service costs by approximately 40 per cent. AI customer service solutions now handle 65 per cent of routine inquiries without human intervention.”
- Cognitive Insights
AI can analyse vast amounts of data much faster than humans. It uncovers patterns and insights that help businesses make better decisions. For example, as per UNDP’s Development Advocate Pakistan report, “AI-based systems in Pakistan are being developed for predicting crop yields by analyzing historical data, weather patterns, satellite imagery, and ground sensor data.” Moreover, Pakistan’s banking sector increasingly employs AI-powered fraud detection to spot suspicious transactions quickly, improving financial security, as per the research paper titled, Use of Artificial Intelligence in the Banking Industry: A Case Study of Pakistan.
- Cognitive Engagement
This involves AI interacting directly with customers or employees—such as chatbots or virtual assistants—which has been adopted by Pakistani companies to improve customer experience and engagement. The country’s growing use of AI is driven by a shift towards more efficient and cost-effective business operations. There is a surge in demand for AI-powered chatbots and virtual assistants, with businesses looking to automate customer service and improve efficiency. Statista’s data from March 2024 projected Pakistan’s AI market size to reach US$861 million in 2025, compared to the US market size projection of US$74 billion in 2025. Pakistan’s market size is expected to show an annual growth rate of 26.28 per cent.
Additionally, there is a growing trend of using AI for predictive analytics and data-driven decision-making in healthcare, finance, and agriculture. Globally, large companies are already using AI for these purposes. HBR points out that firms see real, measurable benefits when they focus on practical, manageable AI use cases instead of grandiose “moonshot” projects (high risk and ambitious).
Artificial Intelligence in Pakistan
While AI adoption in Pakistan is still emerging, there are encouraging developments and significant potential in areas like agriculture, healthcare, education, and governance.
Banking and financial services
Pakistani banks are using AI in mobile banking and fraud detection. Real-time auditing supported by AI tools strengthens transparency and tax administration—demonstrated in research from the Islamabad Policy Research Institute (IPRI). Also, AI-powered chatbot services enable faster customer resolutions, as demonstrated above.
Agriculture
Agriculture, a critical sector for Pakistan’s economy, benefits from AI initiatives predicting weather patterns and identifying crop diseases through satellite imagery—highlighted by the student project GeoGemma, which won the 2025 APAC (Asia-Pacific) AI challenge for its environmental use case. Pilot efforts are bringing AI-driven soil sensors to small farmers, helping optimise yields.
Healthcare
Limited access to medical experts in rural areas can be compensated by AI tools that analyse X-rays, suggest diagnoses, and track disease outbreaks, reducing pressure on hospitals. The UNDP Pakistan report emphasises how AI mobile health apps improve access and early intervention. AI-driven models like IBM Watson Health need to be implemented in Pakistan, which assist medical professionals in diagnosing diseases quickly and early, and recommending specialized treatments with greater precision.
Education
AI-powered education platforms personalise learning experiences by analysing student performance and suggesting tailored content. This innovation can help bridge educational gaps in remote regions. As per the article in The News International, “Pakistan’s Ministry of Information Technology and Telecommunications drafted a National AI Policy that aims to integrate AI into the national curricula and offer fiscal incentives to startups and small/medium enterprises.” But policy must go hand in hand with a commitment to universal internet access if Pakistan is to harness AI’s benefits. This means providing affordable solutions to technology and mobilising investments in reliable digital infrastructure, especially in rural and underserved areas.
Public sector and cybersecurity
According to the World Bank, governments are actively integrating AI-based systems for policy improvement and delivery of public services. Pakistan’s public sector is making strides in AI adoption for governance and auditing under Vision 2025 objectives. AI systems are also increasingly employed to protect critical institutions like banks and NADRA against cyber threats. Tariq Malik, ex-chairman of NADRA, details in his article titled, “Pakistan’s Algorithm for Inclusive Development”, that “NADRA is the first Pakistani public service organization that has applied AI to enhance accessibility and inclusivity. NADRA has helped senior citizens receive pensions, conduct banking transactions, and apply for services without biometric verification issues using AI.”
AI won’t replace humans yet!
AI complements human work rather than replaces it. Jobs evolve rather than disappear. AI handles routine tasks, freeing people to focus on creativity and human relationships. Dr Samuel Rizk, Resident Representative of UNDP Pakistan, says, “AI will create new jobs, but only for a highly specialised workforce. AI will also lead to some redundancies where ‘routine-based roles’ such as clerks, secretaries, and machine operators—jobs currently held by 42 per cent of Pakistanis—could be rendered obsolete by automation. Therefore, Pakistan must urgently invest in reskilling in AI, offering basic digital literacy for its poorer factions, and reforming education to further prioritise Science, Technology, Engineering and Mathematics (STEM).”
Conclusion
AI is no longer a distant future—its real-world applications are here today and hold great promise for Pakistan. Tariq Malik, Senior Advisor, Digital ID and Digital Public Infrastructure Governance, notes, “Pakistan’s AI ecosystem is experiencing rapid growth, driven by a combination of young talent, increasing digital literacy, and recognition of AI’s potential to address economic challenges.” Pakistan can harness AI to tackle challenges, create jobs, and boost economic growth. With persistent effort and thoughtful policies, AI can become a powerful tool that benefits everyone.
As quoted in The Economist, Sam Altman, CEO of OpenAI, said, “In a decade perhaps everyone on earth will be capable of accomplishing more than the most impactful person can today.”
