Artificial Intelligence - Pakistan

The AI market in Pakistan is witnessing rapid growth due to factors such as increasing adoption of digital technologies, rising awareness about AI in various industries, and the convenience offered by AI-powered tools and services. This elevated growth rate can be attributed to the advancements in AI Robotics, Autonomous & Sensor Technology, Computer Vision, Machine Learning, Natural Language Processing, and Generative AI, which are driving the overall market forward.

Customer preferences: The growing use of Artificial Intelligence in Pakistan is driven by a shift towards more efficient and cost-effective business operations. With advancements in technology and digitalization, companies are increasingly leveraging AI to automate processes, improve decision-making, and enhance customer experience. This trend is expected to continue as businesses look for ways to stay competitive and adapt to the changing market landscape.

Trends in the market: In Pakistan, the Artificial Intelligence market is experiencing a surge in demand for AI-powered chatbots and virtual assistants, with businesses looking to automate customer service and improve efficiency. Additionally, there is a growing trend of using AI for predictive analytics and data-driven decision making in various industries such as healthcare, finance, and agriculture. This trajectory is significant as it allows for cost savings, increased productivity, and better decision-making capabilities. However, there are potential implications for industry stakeholders, such as the need for upskilling and reskilling to keep up with the rapidly evolving technology, and the risk of job displacement in certain sectors.

Local special circumstances: In Pakistan, the Artificial Intelligence market is rapidly growing due to the country's large youth population and increasing demand for modern technology. The government has also implemented initiatives to promote the use of AI in various industries, such as agriculture, healthcare, and finance. However, the market is faced with challenges such as limited infrastructure and low digital literacy rates. Additionally, cultural and religious beliefs may also play a role in the adoption of AI, as some may view it as a threat to job security. These factors have a significant impact on the growth and development of the Artificial Intelligence market in Pakistan.

Underlying macroeconomic factors: One of the key macroeconomic factors driving the growth of the Artificial Intelligence Market in Pakistan is the country's increasing investment in technology and innovation. With the government's focus on developing a knowledge-based economy, there has been a significant rise in funding for research and development in the field of AI. Additionally, the growing number of tech startups and incubators in the country are creating a conducive environment for the growth of the AI market. Moreover, the country's young and tech-savvy population is also contributing to the adoption of AI solutions, further boosting market growth.

Data coverage: The data encompasses B2B, B2G, and B2C enterprises. Figures are based on the funding values from different industries for the market.

Modeling approach / Market size:Market sizes are determined through a top-down approach with a bottom-up validation, building on a specific rationale for each market. As a basis for evaluating markets, we use annual financial reports, funding data, and third-party data. In addition, we use relevant key market indicators and data from country-specific associations such as GDP, number of internet users, number of secure internet servers, and internet penetration. This data helps us estimate the market size for each country individually.

Forecasts:In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited to forecast digital products and services due to the non-linear growth of technology adoption. The main drivers are the level of digitalization, the number of secure internet servers, and the revenue of the Public Cloud market.

Additional Notes: The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russian-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the market is updated on an ad-hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development). Data from the Statista Consumer Insights Global survey is weighted for representativeness.