A recent report by Microsoft’s AI Economy Institute, titled the AI Diffusion Report 2025, reveals that Pakistan is lagging significantly in the global race for Artificial Intelligence adoption. Analyzing data from 170 countries, the report found that Pakistan’s integration of AI across industries remains below 15 percent, placing the country far behind many emerging economies that are rapidly embracing AI-driven solutions.
While AI technologies are slowly entering sectors such as education, healthcare, governance, and business, their penetration remains limited, and most organizations rely on traditional methods rather than fully leveraging AI capabilities. This slow adoption not only hampers operational efficiency but also limits Pakistan’s ability to compete in international markets where AI-driven decision-making, automation, and productivity gains are becoming standard.
The report warns that without substantial efforts to accelerate AI adoption, Pakistan risks falling further behind in technological innovation, economic growth, and global competitiveness. Experts emphasize that bridging this gap will require significant investment in digital infrastructure, workforce skill development, and policy frameworks that encourage AI implementation while ensuring ethical and secure use.
Industry analysts note that prioritizing AI adoption can unlock opportunities in automation, predictive analytics, and smart services, helping businesses and public institutions operate more efficiently. They argue that a focused national strategy on AI, combined with collaboration between government, academia, and private industry, is essential for Pakistan to catch up with global advancements and harness the full potential of artificial intelligence for sustainable economic growth.