AI in the corporate sector

The story of artificial intelligence (AI) in Pakistan’s corporate sector is no longer a tale of a distant future. It is a narrative of the present.

A few tech-forward companies started with isolated experiments. Over the last decade, this has evolved into a broad-based movement toward digital transformation. Today, AI is transforming from a novelty to a necessity. Government policy supports this shift, along with private sector investment. Businesses aiming to stay competitive find AI indispensable.

The history of corporate AI in Pakistan is relatively young, with the pivotal moment arriving in 2017. In a landmark move, the Pakistan Telecommunications Company Limited (PTCL) partnered with the US-based applied AI company Afiniti. PTCL became the first company in Pakistan to “Go-Live” with Afiniti’s behavioural pairing technology at scale. This system used AI to pair callers with suitable agents, improving sales and customer service metrics. That Afiniti had development teams based in Karachi and Lahore highlighted the local talent pool available for high-tech deployments.

In the years following, the seeds of an ecosystem were planted. A 2022 report by CW Pakistan noted that local AI engineers were still being hired. These engineers were joining foreign giants like Google and Microsoft. However, a domestic need was emerging.

The report highlighted several initiatives. One such initiative is the Presidential Initiative for Artificial Intelligence & Computing, launched in 2018. It began equipping students and professionals with the skills needed to meet the growing demand. At the university level, institutions such as the National Centre of Artificial Intelligence started operating in 2018. These institutions began funnelling research-driven talent into the pipeline.

But during this gestation period, adoption remained largely experimental. Numerous Pakistani businesses had implemented AI and machine learning. This information comes from Sabih Sheikh, a data scientist quoted in the 2022 CW Pakistan report. However, the limited availability of clean, structured data remained a significant bottleneck for scaling these solutions.

The current landscape, however, tells a story of rapid acceleration. The year 2025 marked a clear tipping point, driven by a confluence of robust policy frameworks and tangible corporate uptake.

The government moved from rhetoric to action with the enactment of the Digital Nation Pakistan Act in January 2025, which established the Pakistan Digital Authority (PDA) to coordinate national digital initiatives. Building on this, the federal cabinet approved the National Artificial Intelligence Policy 2025 in July, which provides a comprehensive six-pillar framework with ambitious targets.

This policy momentum culminated in the Indus AI Week in February 2026, where Prime Minister Shehbaz Sharif announced a $1 billion investment plan for AI development by 2030. This includes funding for 1,000 PhD scholarships and a mandate to train one million non-IT professionals in advanced tech skills.

The Pakistan Software Houses Association (P@SHA) welcomed the move, with Chairman Sajjad Syed stating that the private sector stands ready to translate the policy into “export-driven, practical realities”.

So, where does the corporate sector stand today? The data suggests a surge in confidence and adoption.

The most compelling evidence comes from the Overseas Investors Chamber of Commerce and Industry (OICCI). According to the OICCI Business Confidence Index Wave 28, reported in December 2025, overall business confidence has rebounded sharply to over 22 per cent. Crucially, the survey revealed that 43pc of OICCI members, which represent over 200 multinationals, are already adopting generative AI.

Furthermore, a striking 81pc expect AI to manage key business operations soon. This indicates that the largest corporations are not just experimenting; they are integrating AI into their core strategies.

Market research firms are also projecting strong growth across verticals. A report from 6Wresearch titled ‘Pakistan AI and Machine Learning in Business Market (2025-2031)’ identifies financial services, healthcare, retail, and manufacturing as the key end-users fueling the market.

In fintech, for example, global digital operator VEON Group announced a $20m investment in Mobilink Bank in early 2026. Around the same time, Epic Angels, the world’s largest all-female investment collective, backed Karachi-based fintech Neem in a Pre-Series A round.

Meanwhile, Gobi Partners plans to launch Techxila Fund II, targeting $50m to invest in high-potential sectors, including fintech. This momentum is driven by platforms like Raast, which has now taken onboard 48m users and is integrated with 53 banks, as the government pushes to make digital transactions cheaper and easier.

Global tech giants are deepening their roots in Pakistan, validating the country’s potential. SAP, the German software powerhouse, is aggressively expanding its footprint. According to a TechJuice interview, SAP is promoting its cloud-based AI suites, such as RISE with SAP and GROW with SAP, to help local businesses build digital-first, AI-driven models. This focus on enterprise-grade infrastructure is distinct from consumer-focused tech investments and signals a maturation of the market.

Despite optimism, the path to fully-fledged AI integration is fraught with challenges, including a lack of dedicated AI infrastructure and funding beyond academic grants, and a significant skills gap in the workforce.

TechJuice provided a critical perspective following the Indus AI Week 2026. They noted that while the event was a “polished demo reel”, the country remains firmly in “adoption mode, not invention mode”.

Startups reportedly faced bottlenecks such as limited compute access, scarce proprietary datasets, and infrastructure gaps. It also noted that Pakistan must shift toward algorithmic originality. Without this change in focus on fundamental research, the country risks remaining a “fast follower” rather than a leader.