Pakistan’s AI dependence

LAHORE: Pakistan relies on global tech giants like Google, Microsoft, OpenAI, Amazon, and other Chinese firms for Artificial Intelligence-based services. Without local AI development, Pakistan will have to buy or rent AI capabilities, a move that increases its long-term dependence on foreign AI solutions.

AI can increase productivity and profits for businesses that adopt it while displacing workers, especially in low-skill jobs. Countries and companies lacking AI capabilities may fall behind in competitiveness, deepening global inequalities.

AI-driven surveillance, social scoring and predictive analytics can be used by those in power to control populations, suppress dissent or manipulate behaviour, limiting the autonomy of individuals and weaker nations. If AI systems are used in governance, finance and business, those who control them will shape policies, investments and even legal decisions. This could lead to a scenario where the deprived have little say in matters affecting them.

Pakistan faces the risk of being left at the mercy of those who control AI technology, making it vulnerable to AI-driven global hegemony. Local industries could struggle to compete with AI-optimised production in China, India and the West. Foreign tech firms may dominate Pakistan’s digital economy, leaving little space for local innovation. Pakistan lacks the infrastructure and expertise to integrate AI effectively. Countries or corporations with advanced AI capabilities could influence Pakistan’s policies by offering AI solutions in areas like policing, finance or education -- at the cost of sovereignty. Pakistan would be forced to outsource AI decision-making to global tech giants, reducing national control over critical policies. Predictive AI policing and surveillance could be misused if not locally controlled.

AI will replace low-skill jobs in sectors like textiles, retail, banking and even customer service. AI-driven precision farming in China and India could make Pakistani agriculture uncompetitive. Pakistan will have to retrain its workforce to focus on AI-driven jobs, which requires massive investment in education that the country may struggle to afford. A growing digital divide, where only elite institutions produce AI-ready graduates, leaving the majority of Pakistan’s youth without future job prospects.

AI-driven financial and trade algorithms control global markets, pricing and supply chains. Pakistan’s financial institutions do not have AI-driven risk assessment tools, making them vulnerable to manipulated currency fluctuations and speculative attacks by global AI-driven hedge funds. Pakistan could be at a disadvantage when dealing with AI-powered economies that can predict and manipulate outcomes.

The lack of local AI infrastructure (such as supercomputers, AI research labs) means Pakistan cannot develop indigenous AI models suited to its needs. Possible outcome would be AI-driven economic colonisation, where foreign firms control critical AI applications in healthcare, banking, education and governance.

To avoid being left at the mercy of AI-controlling powers, Pakistan should develop an AI adoption roadmap for key industries (textiles, agriculture and banking); encourage public-private AI research partnerships to create Pakistan-centric AI solutions and provide tax incentives for AI startups to reduce reliance on foreign AI services. It should introduce AI, robotics, and data science courses in universities and vocational training institutes. Pakistan must focus on STEM (Science, Technology, Engineering, and Mathematics) education to prepare young people for AI jobs.

There is a dire need to invest in local AI infrastructure and incentivise AI startups. It should also partner with friendly nations like China, Turkey and Malaysia to co-develop AI capabilities; and develop AI-powered governance models that enhance efficiency while ensuring national data security. Pakistan must develop its AI ethics and governance framework to avoid AI misuse.

China has invested over $150 billion in AI research, supercomputing and semiconductor manufacturing. AI is embedded in smart cities, surveillance systems, digital payments and even judicial processes. AI-driven automation in textiles, automotive, and electronics boosts productivity. AI-powered banking and digital finance (WeChat Pay, Alipay) dominate China’s economy.

India has no formal AI strategy like China, but the government launched the National AI Strategy (2018) to develop AI applications in healthcare, education and agriculture. India attracts huge AI investments from global tech giants (Google, Microsoft, Amazon and Meta). India’s startup ecosystem is AI-driven, with over 4,500 AI startups. India dominates the AI-driven outsourcing industry. AI-powered drones, sensors and weather prediction tools are improving its farm productivity. India has AI-based chatbots for government services, reducing bureaucracy.

Bangladesh lacks AI infrastructure like China and India, but it focuses on niche AI applications. The government launched the ‘Digital Bangladesh Vision 2021’, integrating AI in finance, governance and textiles. AI use has increased the textile sector’s productivity and reduced waste. AI-powered sewing robots, quality control and supply chain analytics have improved efficiency. AI-based lending models help small businesses and farmers access credit and AI-powered edtech platforms provide vocational training.