Pakistan’s AI Ambition Hampered by Weak Data and Processes, Says SAP Leader Ahmed Al‑Faifi.

Pakistan is keen on artificial intelligence, but many enterprises are still building their digital foundations. This means cloud adoption and data modernisation are becoming top priorities. Ahmed Al‑Faifi, a senior executive with SAP, said that the biggest obstacles for large‑scale AI adoption are data systems, inconsistent governance and outdated business processes. Over the past year, Pakistani firms shifted focus from basic continuity and cost control to discussions about cloud transformation and AI‑ready operations, he noted. Al‑Faifi added that Pakistan is still in the early stages of AI use. The most serious risk is the lack of reliable enterprise data, standardised processes and professionals who can link technology with business needs. He cited that only 2% of Pakistani companies introduced a new product or process in the last three years, compared with 28% in similar lower‑middle‑income economies. He advised companies to modernise their enterprise resource planning (ERP) systems before adding AI. The suggested steps are: simplify legacy processes, establish clean and governed data, and migrate to modern cloud platforms. Al‑Faifi compared AI deployment without a solid data base to building a highway on a shaky foundation. He said SAP followed the same pattern internally. He also highlighted Pakistan’s favourable macro environment for digital investment: inflation has eased sharply, the stock market has produced strong returns, and IT and IT‑enabled services exports hit a record $3.8 billion last fiscal year. With a population of over 240 million, a young workforce and more than 150 million broadband connections, Pakistan has the base for long‑term digital transformation. The leading sectors for digitisation, according to Al‑Faifi, are banking, manufacturing, information technology and the public sector. Financial institutions are investing in compliance and risk systems, while manufacturers need digital platforms for supply‑chain transparency and traceability. Public‑sector projects are modernising tax and customs. Pakistan’s technology talent is seen as a competitive advantage. The country could become a regional hub for certified professionals serving the Middle East and Africa, and could innovate in textiles, Islamic finance and supply‑chain management. Future demand will lean heavily on skills in AI governance, data management and sustainability compliance, as global customers tighten regulatory and environmental standards. Pakistan’s current share of the estimated $3.8 trillion global digital services market is very small, leaving large room for export growth and investment attraction. Al‑Faifi said that sustained reforms, stronger data governance and a focus on digital skills are essential to build investor confidence and establish Pakistan as a regional centre for AI‑enabled enterprise transformation. Because Pakistan remains at an early stage of enterprise AI adoption, he concluded that consistent reforms and disciplined execution could position the country as a tech hub over the next decade. Al‑Faifi ended by saying SAP’s commitment to Pakistan is long term and that the market has strong fundamentals and momentum, and that disciplined execution could make it one of the region’s most important markets for enterprise transformation.