KARACHI:

Imagine a small business owner in Karachi who uses AI-powered tools to predict market trends and streamline inventory management or a local app developer in Lahore whose product reaches users in Europe and North America thanks to smart advertising algorithms. In today’s fast-paced digital landscape, artificial intelligence (AI) is no longer a futuristic concept confined to tech giants in Silicon Valley; it is a reality driving economic growth across all sectors. For countries like Pakistan, the potential for AI to transform businesses and elevate the economy is enormous. AI is not just a buzzword; it's the backbone of future economic development.

In 2023, AI-powered products and solutions became a game-changer for Pakistani businesses, creating unprecedented opportunities for growth and expansion. From small and medium-sized enterprises (SMBs) to large corporations, AI tools have empowered businesses to reach new markets, streamline operations, and ultimately drive economic growth. But it's not just technology itself that’s pivotal—it's how it’s being utilised. Google, a leader in digital innovation, has been at the forefront of enabling Pakistani businesses to leverage AI, propelling them toward new horizons.

Recently, Google hosted the "Agay Barho" event in Islamabad, showcasing its commitment to empowering Pakistan's digital economy. The event revealed the findings of a report titled "Agay Barho: Empowering Pakistan's Digital Economy," which emphasises the crucial role of AI in accelerating exports, creating new opportunities, and accessing overseas markets.

According to the report, in 2023, Google’s AI-powered products and solutions provided an impressive Rs 3.9 trillion in economic benefits to Pakistani businesses and households, marking a 222 percent increase from 2020. This massive impact illustrates the power of digital tools to create real-world economic value. At the core of this contribution are Google's diverse range of AI-driven products—Google Search, Google Ads, Google AdSense, Google Play, Google Cloud, and YouTube—which collectively provided Rs2.6 trillion of economic activity for Pakistani businesses. This reflects a 159 percent increase since 2020, highlighting the expanding role of digital platforms in enhancing productivity and enabling growth.

For Pakistani businesses, AI offers numerous advantages. Google’s tools have become essential for businesses looking to expand their global footprint. Take the example of Google Ads and Google AdSense, which help local companies target and reach new customers worldwide, thereby boosting exports and enhancing Pakistan's global competitiveness. In 2023 alone, these tools enabled Pakistani businesses to gain PKR 249 billion in export benefits from overseas markets, opening up new revenue streams and enhancing the country's economic resilience.

Productivity and Efficiency with AI

Beyond global reach, Google's AI-powered products have been instrumental in driving productivity and efficiency among Pakistani businesses. For instance, Google Workspace, a suite of collaborative tools, has saved Pakistani workers 40 days of work time per year by enabling real-time collaboration, shared access, and reduced meeting times. This is not merely about saving time; it is about creating a more agile, innovative workforce that can respond quickly to changes in the market.

AI-powered tools like Google Analytics have also empowered businesses to make data-driven decisions. Esire, one of Pakistan’s fastest-growing e-commerce players, utilised Google Analytics to uncover hidden customer preferences and leveraged Google Shopping Ads to attract new audiences. The results were swift and impressive—within three months, conversion rates soared, and the company expanded into four new markets, growing its revenue 2.5 times.

“With the help of Google, it is very easy to expand overseas. Google Ads and Google Analytics have helped optimise and target our ads in markets we were not previously in,” said Danish Patel, Director, Esire Inc.

For many local mobile app developers, Google Play has unlocked global reach, with revenues increasingly driven by international customers. These tools have not only boosted productivity but also enabled Pakistani businesses to thrive in an increasingly competitive global market.

Future Forward Pakistan

Recognising the transformative power of AI, Google hosted the "Agay Barho: A Google for Pakistan" event in Pakistan, reaffirming its commitment to unlocking future opportunities for Pakistan’s digital economy. At the event, Google shared its vision for a ‘Future Forward Pakistan’ and unveiled new research findings underscoring the critical role of digital skills and exports in future-proofing the country’s economy.

The research, conducted by Access Partnership, highlighted that investing in digital skills and boosting digital exports can significantly contribute to Pakistan’s economic growth. The report, outlined how the country’s IT industry is emerging as a key driver of economic recovery and growth. Despite facing economic challenges, Pakistan's IT services exports have grown by 2.7 times since 2014, reaching 35 percent of all service-sector exports in 2023.

According to the report, digital technologies, particularly AI, are accelerating exports by creating new opportunities and facilitating access to overseas markets. With sectors such as mobile apps, online video services, and cross-border e-commerce identified as key areas, the potential for growth is vast. By developing exportable digital solutions, reducing market entry costs, and driving greater efficiency in the export process, Pakistan could add Rs 1.8 trillion to its annual export value by 2030.

At the event, Shaza Fatima Khawaja, Pakistan's IT Minister commended Google’s efforts in driving the country’s digital economy forward. She emphasised the immense potential of digital exports to transform the economy and acknowledged Google’s initiatives that have improved the lives of thousands of Pakistanis. In 2023 alone, Google provided over 960,000 jobs to Pakistani youth, highlighting the transformative power of digital technologies.

Google's country director for Pakistan, Farhan S. Qureshi, reiterated the company's commitment to empowering Pakistan's talent and vibrant digital economy. "As the Access Partnership report highlights, Pakistan's young and dynamic workforce is poised to drive remarkable growth,” he says. “With that opportunity in mind, we're committed to fuelling this momentum by investing in skills development with initiatives such as Google Career Certificates and Google Developer programmes, ensuring individuals and businesses can harness the full potential of AI – a potential that could add Rs 2.8 trillion to Pakistan's annual GDP by 2030.”

While AI has proven to be a significant driver of economic growth, its full potential can only be realised by bridging the digital skills gap. To address this, Google has invested in skills development through initiatives like Google Career Certificates, which have provided scholarships to thousands of Pakistani students and women. In 2024, the company plans to offer an additional 45,000 scholarships to further elevate Pakistani tech talent.

Moreover, Google's recent partnership with Tech Valley, Allied, and NRTC to produce 500,000 Chromebooks locally marks a significant step in Pakistan’s digital transformation journey. This collaboration aligns with Google's broader mission to foster innovation, support businesses, and create a digitally skilled workforce ready to thrive in the future economy.

Creators in the Digital Age

In addition to empowering businesses, Google continues to support Pakistani content creators and the broader digital media ecosystem. In Pakistan, there are now over 600 creators with more than 1 million subscribers, and over 8,500 creators with more than 100,000 subscribers on YouTube. In 2023, more than 55 percent of the watch time on content produced by Pakistani channels came from outside the country, highlighting the global reach and impact of local creators.

This global audience has translated into significant economic opportunities. The number of YouTube channels making Rs 10 million or more in annual revenue grew by over 25 percent year over year, demonstrating the economic potential of digital content creation.

A Vision for the Future

Google’s efforts under its 'Future Forward Pakistan' mission is a proof to its commitment to supporting the country's economic growth by upskilling the tech talent and developer ecosystem, fostering innovation, and helping businesses leverage AI and digital technologies. As Pakistan continues to embrace digital transformation, the potential for AI to drive economic growth, create jobs, and expand exports is limitless.

By closing the digital skills gap and enhancing digital exports, Pakistan can unlock a new era of economic prosperity, proving that the future is indeed forward. With the right investments in technology and skills, the dream of a digitally empowered Pakistan is quite within reach.

As the world rapidly evolves, one thing is clear: the countries that invest in digital and AI capabilities today will be the leaders of the global economy tomorrow. And thanks to the efforts of tech companies like Google, our country is well on its way to becoming one of those leaders.