Pakistan ill-prepared for AI era amid weak data systems: Report
Synopsis
Pakistan is increasingly using AI tools but dangerously unprepared to govern or scale them. A Dawn report lays bare a structural crisis: outdated labour surveys, poor data quality and policymakers with limited AI literacy mean the country risks being left behind in the global AI race — not for lack of interest, but for lack of institutional foundation.
Key Takeaways
Pakistan remains significantly underprepared for the AI era despite rising adoption of tools like ChatGPT among youth and service-sector workers.
Outdated statistical systems , poor data quality and low digitisation levels risk undermining AI-driven decision-making .
Government agencies and businesses lack reliable data on AI adoption rates , making impact assessment on productivity and employment difficult.
Labour surveys and official databases still follow pre-digital-economy frameworks with no tracking of AI adoption by industry or occupation.
AI adoption is uneven : banks and large firms are investing, but most businesses have no formal AI strategy.
Experts call for stronger digital infrastructure , improved data governance and greater AI literacy among policymakers.
Pakistan remains significantly underprepared to harness or manage the opportunities and risks posed by artificial intelligence (AI), according to a report published in Dawn, even as AI tool adoption climbs among the country's educated youth and service-sector workforce. Weak digital infrastructure, fragmented data ecosystems and limited institutional capacity are collectively holding the country back.
Growing Adoption, Lagging Readiness
AI tools such as ChatGPT are seeing gradual uptake across Pakistan, particularly among young, educated professionals and employees in the services sector. Businesses, too, are exploring AI applications to cut costs and improve operational efficiency.
Yet the country's broader digital ecosystem and policy architecture remain underdeveloped, constraining the scale at which AI can be deployed and the benefits it can deliver, the report noted.
The Data Quality Problem
At the core of Pakistan's AI readiness gap is a data problem. The country's statistical systems are outdated, data quality is poor, and overall digitisation levels are low — conditions that directly undermine AI-driven decision-making, which depends on accurate and comprehensive datasets.
Experts cited in the report pointed out that government agencies and private businesses alike lack reliable data on the extent of AI adoption, making it difficult to measure the technology's actual impact on productivity, employment and economic growth.
Notably, Pakistan's labour surveys and official databases still operate on frameworks conceived before the digital economy took shape. There is little to no systematic tracking of AI adoption across industries or occupations that face potential automation — a significant blind spot as global labour markets shift.
Institutional Gaps and Policy Shortfalls
Experts quoted in the report questioned whether government institutions possess the technical expertise and policy understanding required to implement AI initiatives effectively. Poor data quality and limited AI awareness among policymakers, they cautioned, could blunt the impact of even well-funded technology programmes.
Private sector specialists echoed these concerns, describing AI adoption as uneven across industries. While banks and a handful of large corporations are investing in AI capabilities and recruiting specialised talent, the majority of Pakistani businesses have yet to develop formal AI strategies.
What Needs to Change
Experts stressed that Pakistan must prioritise three interconnected reforms to stay competitive as AI reshapes the global economy: strengthening digital infrastructure, overhauling data governance frameworks, and building AI literacy among both policymakers and the business community.
This comes amid a broader global race in which countries with robust data systems and institutional capacity — including India, the UAE, and several Southeast Asian economies — are pulling ahead in AI readiness rankings. For Pakistan, the window to close this gap is narrowing as AI integration accelerates worldwide.
Point of View
Yet that is precisely what Pakistan is attempting. The uneven private-sector adoption, where only banks and a few large firms have formal AI strategies, mirrors a pattern seen in other lower-middle-income economies that adopted mobile internet late and never built the data infrastructure to match. The harder question the report does not fully answer is whether Pakistan's policymakers have the political will to overhaul data systems that have served bureaucratic convenience for decades. Without that will, AI literacy programmes and infrastructure investments will be cosmetic fixes on a structural problem.
NationPress
13 Jul 2026
Frequently Asked Questions
Why is Pakistan considered ill-prepared for the AI era?
Pakistan lacks the foundational data infrastructure that AI systems require. Outdated statistical frameworks, poor data quality, low digitisation and limited technical expertise within government institutions collectively leave the country unable to deploy or govern AI effectively, according to a report published in Dawn.
Is AI being used in Pakistan at all?
Yes, AI adoption is growing, particularly among educated youth and service-sector professionals using tools like ChatGPT. Banks and some large companies are also investing in AI applications. However, adoption remains uneven and most businesses have no formal AI strategy.
What specific data problems does Pakistan face?
Pakistan's labour surveys and official databases were built before the digital economy and do not track AI adoption by industry or occupation. Government agencies and businesses lack reliable data on how widely AI is used, making it impossible to accurately measure its impact on jobs or economic growth.
What do experts recommend Pakistan do to close the AI readiness gap?
Experts recommend three priority areas: strengthening digital infrastructure, overhauling data governance frameworks, and building AI literacy among policymakers and the business community. Without these reforms, even advanced AI technologies introduced into the country would have limited effectiveness.
How does Pakistan's situation compare to regional peers?
Countries with stronger data systems and institutional capacity — including India and several Southeast Asian economies — are advancing faster in AI readiness. Pakistan's structural gaps in data quality and policy understanding mean it risks falling further behind as global AI integration accelerates.
