Artificial Intelligence is reshaping economies around the world, but experts say Pakistan lacks the digital infrastructure, reliable data and institutional capacity needed to manage its impact or unlock its full potential.

Although artificial intelligence has become increasingly accessible through smartphones and online platforms, many Pakistanis remain uncertain about how the technology will affect jobs, businesses and the economy.

Businesses are exploring AI tools to improve productivity and reduce costs, while many workers fear automation could further shrink employment opportunities in an already challenging labour market.

Dr Dur-e-Nayab, former director of research at the Pakistan Institute of Development Economics (PIDE), said even experts have yet to fully understand AI’s long-term consequences.

“That’s a difficult question,” she said. “I don’t know anyone who truly understands AI’s full consequences.”

Technology specialists argue that Pakistan’s biggest challenge lies in its weak data infrastructure. They say AI systems can only produce reliable results when organisations feed them accurate, complete and transparent data.

One expert said poor-quality data could lead AI systems to produce inaccurate analysis, flawed decisions and ineffective public policies.

Last week, Finance Minister Muhammad Aurangzeb announced that the government had introduced an AI-based tax administration model to improve efficiency and reduce corruption.

However, private-sector experts questioned whether government institutions possess the technical expertise required to implement AI effectively.

“The real problem is the limited understanding of AI across bureaucracy and political leadership,” one expert said, adding that advanced AI systems cannot succeed without informed leadership and strong institutions.

Pakistan Bureau of Statistics Chief Statistician Dr Naeem Zafar confirmed that the agency does not collect data on AI adoption across either the public or private sectors.

Current surveys monitor information and communication technology use but do not measure artificial intelligence adoption, leaving policymakers without comprehensive national data.

Experts also point out that Pakistan’s statistical systems were designed before the digital economy emerged. Existing labour surveys track employment across broad industries but do not identify occupations that AI could significantly disrupt, including software development, accounting, customer service, graphic design and data analysis.

The Ministry of Information Technology has circulated a draft data protection and governance framework and established the Pakistan Digital Authority to support digital transformation and AI development. However, officials have provided few updates on implementation.

Former Securities and Exchange Commission of Pakistan chairman Akif Saeed said digitisation across government and businesses remains incomplete.

“We still rely on photocopies and attested documents, so true digitisation remains incomplete,” he said, adding that AI adoption varies widely among companies.

Muhammad Shahzar Illahi, co-founder and chief executive of EnablifyAI, said banks have taken the lead by developing in-house AI tools and hiring AI specialists, while many businesses still lack formal AI strategies.

He estimated that 80 to 85 per cent of executives and professionals attending AI training programmes already use ChatGPT. However, many remain unaware of basic cybersecurity and data privacy risks associated with public AI platforms.

Illahi also warned that AI could significantly disrupt routine white-collar jobs, including data entry, compliance, finance, human resources and administrative support, while manual manufacturing roles remain more difficult to automate.

Experts say Pakistan must improve digital infrastructure, strengthen data governance and raise AI literacy among policymakers and business leaders if it hopes to remain globally competitive. They also argue that locally developed AI solutions will better address Pakistan’s economic and social needs than imported models.

Some analysts believe rapid AI adoption could improve productivity and reduce costs, while others insist the country should first strengthen institutions and educate decision-makers before deploying the technology on a wider scale.