ARTIFICIAL

INTELLIGENCE
ECOSYSTEM IN
PAKISTAN
A REPORT BY ATOMCAMP

JANUARY 2023
About Us
atomcamp is a continuous learning platform
that aims to intellectually and professionally
uplift Pakistan’s workforce.

atomcamp hosts various courses and programs

centered on tech education to upskill the
Pakistani workforce and to create the
awareness that continuous education is critical
to keep up with the fast-paced world.

Technology Bootcamps Our Mission

At atomcamp, we offer a variety of
multidisciplinary courses, but our main focus
is Data Science, Artificial Intelligence and
Cloud Computing and Infrastructure, which are promote a culture of provide skill
relatively new and emerging fields, especially continuous learning development for youth
in Pakistan. Our focus is to make careers in
these fields accessible to everyone in Pakistan
- regardless of the educational or professional
background.

atomcamp’s 6-month Data Science Bootcamp

encourage
enables participants to learn relevant data build learning
interdisciplinary
skills and launch their careers. The program is communities
learning
meant for those who are aiming to switch into a
data science career as well as those who want
to incorporate data science training into their
current jobs/careers to remain competitive.

Our 4-month AI bootcamp is designed to train

you to launch your career in AI, regardless of provide contextual &
the educational background. This program is accessible knowledge
designed for everyone as the first two months
of AI bootcamp focus on building a foundation
in Python, Math, and Machine Learning.

About the Author

This report has been authored by Mahnoor
Imran Sayyed, a research analyst at atomcamp.
Table of Contents
Age of Artificial Intelligence 11

Artificial Intelligence: an
Introduction 2

Artificial Intelligence: the

Global Outlook 3

Artificial Intelligence: the 7

Pakistani Context

References 12

2
 1

Age of Artificial Intelligence

Artificial Intelligence is a disruptive new kind of technology that has been decades in the
making. This new development promises to redefine the way we interact with machines-as
individuals, economies and communities. An accelerating adoption across the globe has placed
artificial intelligence front and center of a global digital revolution.

Leaps Forward: Advances in AI

Artificial Intelligence has an emerging presence in our everyday lives. At an individual level, AI
technologies are being leveraged to provide customized recommendations, automate routine
tasks and create and curate content for millions. For organizations across the world and in
Pakistan, AI represents a huge opportunity to both enhance operations and processes as well
as explore new avenues and markets.

7 Decades of AI
Carnegie Mellon
University pioneered
The term "Artificial An autonomous
the use of neural
Intelligence" is coined vacuum cleaner
networks to steer
by computer scientist is debuted
autonomous vehicles
John McCarthy

1955 1989 2002

1950 1964 1980 2017

Computer scientist A chatbot named WABOT-2, built at AlphaGo beats the

Alan Turing Eliza is created at Waseda University, is a world champion in
proposes a test for MIT Artificial robot capable of Go, a popular and
machine Intelligence communicating with highly difficult board
intelligence Laboratory people as well as reading game.
musical scores

Source: G2⁽²⁶⁾
 2

Some Use Cases of AI

Similarly, in transport and

In sectors such as
industry, the efficient
healthcare, artificial
booking and deployment of
intelligence holds the
resources and the
potential to provide
automation of manual tasks
support in diagnosis,
such as driving via artificial
surgery and
intelligence is helping
measurements.
companies save millions.

In financial institutions
across the world, AI can be In agriculture, AI can be
harnessed to provide harnessed to provide real
accurate forecasts of time insights on areas that
global markets, detect need irrigation, fertilizers or
cybercrime and fraud pesticides thereby
transactions and make enhancing overall
informed decisions about productivity.
credit risk.

The dramatic uptake of AI by organizations both globally and in Pakistan has called for greater
government oversight and involvement moving forward as AI pushes the frontier on
technological development.

Artificial Intelligence: an Introduction

The undisputed buzzword of the 21st century,

artificial intelligence has been hard to define,
even for academics themselves. A widely Artificial intelligence is
agreed upon definition of artificial intelligence activity devoted to making
is one suggested by Stanford University’s Nils machines intelligent, and
J. Nilson and it argues that “Artificial intelligence is that quality
intelligence is activity devoted to making that enables an entity to
machines intelligent, and intelligence is that
function appropriately and
quality that enables an entity to function
with foresight in its
appropriately and with foresight in its
environment.
environment.”⁽¹⁾ However, how companies,
governments and individuals define “foresight”
and “intelligence” varies upon context.
 3

Typically, artificial intelligence can be categorized across two major markers:

The extent of human assistance
Depending on their use, some artificial intelligence models are designed to involve
humans while others function entirely independently.
The extent of adaptivity
Artificial intelligence can also be defined based on its relative adaptivity. Certain models
are capable of adjusting to and learning from their environment while others are
hardwired or in other words perform their function in the specified way regardless of
changes to their environment.

Categories of AI

Human Assistance No Human Assistance

Assisted Intelligence Automation

These are systems that assist This refers to the automation of
humans in making decisions routine manual tasks. This does
Hardwired or taking actions. Hard- not involve new ways of doing
wired systems that do not things – it automates existing
learn from their interactions. tasks.

Augmented Intelligence Autonomous Intelligence

AI systems that enhance AI systems that adapt to
human decision making and different environments and act
Adaptive
continuously learn from independently without human
their interactions. assistance.

Source: PwC (2020)⁽²⁾

Artificial
Globally, the artificial intelligence industry is poised to be one of
Intelligence: the most productive and profitable industries of the 21st century.
Business leaders across the world are looking to understand the
the Global potential benefits and risks of incorporating new and advanced AI
technologies in their day to day operations.
Outlook
 4
Artificial Intelligence: the $66.8 billion
Global Market AI global funding for 2021

The Al industry is thriving across the globe. In 2021, the 65

global market was estimated to be worth over USD 328 AI companies with a
valuation of USD 1 Billion
billion⁽²⁵⁾. Moreover, Al global funding doubled to $66.8
billion, and a record 65 Al companies reached $1B+
valuations ⁽³⁾. Every year, an increasing number of $15.7 trillion
companies adopt AI solutions. PwC predicts AI could added by AI adoption to the
add up to $15.7 trillion dollars to the global GDP by global economy by 2030
2030. Of this increase, $6.6 trillion is likely to come (projected)

from increased productivity as a result of AI solutions

while $9.1 trillion is likely to come from consumption
side effects.⁽²⁾

With its development still in nascent stages, AI holds significant potential at a macroeconomic
level. Currently, its applications are being explored by both developed and developing countries.
While all regions are poised to benefit from the advances in AI, PwC predicts that North America
and China will make up nearly 70% of the total global economic impact of the AI advances to
come. Currently, these two countries also dominate in cross country collaborations for AI,
according to the Stanford AI Index Report. As of 2021, the United States was the world leader in
both total private investment in AI and the number of newly funded AI companies, three and two
times higher, respectively, than China, the next country on the ranking ⁽⁴⁾. In Europe, London is a
critical hub, with AI companies employing almost 23, 800 people. Singapore is also a major center
for Big Tech in Asia with companies such as Google, Meta, Amazon and Microsoft having set up
office. As it stands, the AI market in Singapore is valued at an estimated $960 million with an
annual CAGR of 42%⁽³⁾.

Applications of AI Across the Globe

McKinsey and Company’s 2022

report on the State of AI found
that adoption of AI more than
doubled since 2017 from a
sample of nearly 1500
companies across the globe ⁽⁵⁾.
Companies across a variety of
sectors are recognizing the
value that AI can create in
different functions.

Source: McKinsey & Company (2022)⁽⁵⁾

 5

As shown, a large proportion of companies are

geared towards using AI to improve the quality of
service offered as well as to enhance operations.
AI gains are expected to be driven by the increases
in labor productivity as well as boosted consumer
side demand due to accurate and customized
prediction models ⁽²⁾.
Artificial Intelligence
Artificial Intelligence adoption is also becoming
adoption is also becoming
increasingly attractive and convenient as AI increasingly attractive and
becomes both cheaper and more high performing. convenient as AI becomes
For example, since 2018, the cost to train an image both cheaper and more high
classification system has decreased by 63.6%, performing. For example,
while training times have improved by 94.4%. The since 2018, the cost to train
trend of lower training costs but faster training an image classification
times is consistent across other categories as well system has decreased by
such as recommendation, object detection and 63.6%, while training times
language processing. Furthermore, this trend
have improved by 94.4%. The
holds not just for AI software but also for AI
trend of lower training costs
hardware with robotic arms becoming cheaper:
the median price of robotic arms has decreased by
but faster training times is
46.2% in the past five years—from $42,000 per consistent across other
arm in 2017 to $22,600 in 2021. ⁽⁴⁾ categories as well such as
recommendation, object
With AI becoming more accessible to organizations detection and language
across the globe and its benefits apparent, processing.
companies are increasingly investing more in
incorporating artificial intelligence in their
functions. McKinsey and Company’s report on AI
found that nearly 52% of companies reported that
at least 5% of their budgets went into AI solutions
compared to 40% in 2018⁽⁵⁾ .

Governance & AI: the Global Landscape

As interaction with AI becomes more widespread, at both the individual and organizational level,
governments have begun to take note. Artificial intelligence, its uses and its potential risks have
become critical discussion points for governments across the globe.

In major hubs for AI, governments have dedicated policies and plans dedicated specifically to
the AI sector and its improvement. For example, in 2019, under its AI Sector Deal, the UK
government allocated £0.95 billion directly to the sector as well as £2.5 billion for an investment
fund and infrastructure improvements. France also has a dedicated National AI Strategy that
both dispenses funds for research and leads training programs for professionals. ⁽³⁾
 6

Not only are governments interested in supporting

the artificial intelligence industries in their
respective countries, but they also actively monitor
and oversee developments in the industry at large.
By 2020, Canada, United Kingdom, United States,
Germany, and European Union had all published
reports that monitored and evaluated the
implementation of their AI strategies and highlighted
milestones and accomplishments ⁽⁶⁾.

The regulatory environment for artificial intelligence

is also a pressing concern for governing bodies. An
analysis of legislative records by Stanford
University’s AI Index found that in a sample of 25
countries, the number of bills containing “artificial
intelligence” that were passed into law grew from
just 1 in 2016 to 18 in 2021. Spain, the United
Kingdom, and the United States passed the highest
number of AI-related bills in 2021, with each
adopting three ⁽⁴⁾. International governing
organizations such as the World Bank and the UN
have also actively sponsored research into how
governments can create a regulatory environment
for AI ⁽⁷⁾. In 2021, all member states of the United
Nations Educational, Scientific and Cultural
Organization (UNESCO) adopted an agreement on
the ethics of AI which defined “the common values
and principles needed to ensure the healthy
development of AI” ⁽⁸⁾.

UNESCO's policy on the ethics of AI advocates for a

more human centered AI approach and advocates
for greater inclusivity in the adoption and spread of
AI under the banner of "AI for all". The body shows
concern not just for developments in AI but also for
how the profits reaped from this technological
innovation are shared amongst member states. This
represents an interesting shift in thinking as it
indicates that policy makers at the highest level are
considering not just the adoption of AI but even the
consequences of what is to come after⁽²³⁾.

UNESCO has also worked to produce guidelines on

policymaking for AI with a particular focus on
education and released a report titled "Artificial
Intelligence & Education: Guidance for Policy
Makers."⁽²³⁾
 7

Artificial Intelligence:
the Pakistani Context
The age of artificial intelligence represents a huge
22 opportunity for Pakistan which houses one of the
median age of the Pakistani
largest population in the world. Organizations of all
population
scales across various industries are both adopting AI
in their day to day operations and providing AI centric
services to third parties. The Government of Pakistan
has also recognized the need to regulate the current
artificial intelligence landscape, taking steps to
nurture the growing need and demand.

25,000
engineering & IT Human Capital Perspective
professionals produced every
year With a median age of 22⁽⁹⁾, the population of Pakistan is
a dynamic powerhouse of labor and there is some
indication in current labor market trends that this
potential of AI is already being realized. According to
the Government of Pakistan⁽¹º⁾, the country produces
over 25,000 IT professionals and engineering graduates
every year. 600,000 professionals are currently
employed by the IT sector and are engaged with AI-
600 000 directly or indirectly. Trends in academia also indicate
individuals employed by the IT the growing importance of AI with educational
sector in Pakistan institutions around the country, engaging students and
conducting extensive research into artificial
intelligence. Between 2016 and 2020, 2600 AI centric
publications were credited to Pakistan⁽²⁴⁾. Some
universities such as FAST⁽²⁹⁾, COMSATS⁽²⁸⁾, SZABIST⁽¹¹⁾
and GIKI⁽¹²⁾ even offer dedicated bachelors programs in
artificial intelligence. Pakistan also hosts a huge
freelancing market that operates both in domestic and
2600 international spheres. According to the Government of
AI related publications in Pakistan, in 2019-2020, the freelancer market earned a
Pakistan from 2016-2020 total of USD 150 million and ranked 4th globally in
terms of growth. The most popular services provided
by these freelancers include web development, logo
designing and programming-all IT related services that
are bound to involve some interaction with AI-if not
currently then in the future⁽¹º⁾. From a human capital
perspective therefore, Pakistani professionals are
already extensively involved with the wider tech
4th ecosystem and it is a growing industry in the country.
the position of Pakistan's
freelance market in terms of
growth
 8
Artificial Intelligence Market in Pakistan

In Pakistan, a majority of AI-related

work is done through IT exports as use
cases and products that are developed
for international third party users.
According to Pakistan Vision 2025 and
the Digital Policy of Pakistan 2018, the
ICT industry size is targeted to reach USD 2.1 billion in exports
$20 billion by 2025 ⁽¹⁵⁾. Pakistan has a
flourishing IT sector with IT exports
exhibiting an 18% year on year growth.
18% YoY growth of IT
IT remittances are growing exports
exponentially, with exports valued at
USD 2.1 billion ⁽²⁷⁾. Of these exports and 4% contribution of IT
remittances however, a large majority
is concentrated in providing low end
sector to GDP
services as opposed to high end
services in AI and Machine Learning ⁽¹⁶⁾. 12000+ IT companies in
Pakistan
In 2021, Pakistani tech-based startups
also received $278 million in funding ⁽¹⁷⁾.
This indicates that there is also
considerable promise in upcoming
start-ups that could potentially use Source: P@sha Website ⁽²⁷⁾
and provide AI centric solutions to
consumers.

Players & Use Cases

Pakistan is home to a number of different organizations-businesses, research groups and so
on- that are looking to work with AI, either directly or indirectly. Companies are providing AI
based solutions and creating AI products to solve problems for consumers and organizations.

Motive
Serving more than 120,000 companies all over the world in several different industries
including trucking and logistics, passenger transit, delivery, field service, and agriculture,
Motive provides AI powered applications to its consumers for tasks such as equipment and
vehicle tracking and automation of day to day operations.
 9

Team Urban Tech

Addo AI
LUMS
Addo is a global AI consulting firm that A research group based in LUMS, Lahore,
serves clients to create state of the art Team Urban Tech works to provide data
solutions using deep learning, artificial centric solutions to existing issues in
intelligence and data engineering. With urban communities. A recent project they
an impressive docket of clients, from Visa undertook was a traffic analytics
to IFC, Addo has worked across a variety application that used AI models to track
of industries and geographies. One of and extract images of specific vehicles for
their projects with a large global retailer further checks. Similarly, the team has
entailed creating an AI engine that also worked on route optimization for
precisely forecasted demand and rescue 1122 and greens space analysis for
suggested improvements on inventory urban communities. Such systems can be
management ⁽²¹⁾. employed at scale to create smart cities
⁽¹⁸⁾.
Computational
Biology Research affiniti
Lab
A unicorn valued at USD 1.6 billion⁽²º⁾,
Affiniti is a major player in Pakistan’s
Based in FAST University, the
budding AI market. Based in the US,
Computational Biology Research Lab is a
Affiniti provides an AI service that uses
research group that works with computer
data points on customer needs and trends
algorithms and AI to solve biology related
to enhance the quality of their client’s
problems. Most recently, the team has
customer service. Using a “Pair Better”
won grants to explore new technologies
philosophy, Affiniti’s AI can match
such as an AI powered cancer diagnostic
customer service agents to customers and
tool and digital pathology.
ensure that their client organization
benefits from an improved brand
perception.
Jazz
Though originally a telecom player, Jazz
has also ventured into the field of AI
baseH
centric solutions. The Jazz Business Valued at USD 4 million⁽¹⁹⁾, BaseH is a
Solutions vertical of the organization Pakistani startup that has developed the
provides a host of AI and IoT (Internet of first of its kind AI news writer called
Things) based solutions to organizations Dante. Dante can work as a robotic news
such as managing and tracking the writer of sorts and generate content on a
attendance & engagement of employees variety of topics from international news
in the corporate sector and managing to stocks to sports. On the back end,
and monitoring traffic vehicles. In this Dante creates content by using data from
area, Jazz has partnered with a number all across the internet and uses Natural
of organizations such as Microsoft, Learning Processing (NLP) to put together
Oracle, Dell & ZTE. content seamlessly.
 10
Governance & AI: the Pakistani Context

In order to bolster the growing AI market and ensure that

a proper regulatory framework is put in place, the
government of Pakistan and the private sector have
taken some notable steps. To begin with, the government While the services
has helped set up institutions such as the Presidential
side of Pakistan's
Initiative for Artificial Intelligence & Computing (PIAIC),
artificial intelligence
National Center of Artificial Intelligence (NCAI) and Sino-
Pak Center for Artificial Intelligence (SPCAI). Similarly,
capabilities is
the Pakistan Software Export Board has launched its emerging strong, we
Tech Destination platform which creates awareness and need to bolster the
promotes Pakistani exports abroad. These institutions AI product side as
provide a range of services from organizing trainings and well and ensure that
fellowships to mentoring AI centric startups and our exports are best
providing seed money. positioned in the
international trade
In terms of infrastructure, the Special Technology Zone market
Authority (STZA) was established in 2021 with the goal of
providing technology destinations for business through
zone development. Incentives provided to businesses in
designated zones allow for IT companies to operate Hamza Saeed Orakzai
smoothly and catapult their growth. Currently, 7 such (STZA)
zones have been established by the STZA all over
Pakistan, from Haripur to Lahore. Moreover, the
government is also dedicated to setting up a regulatory
framework for AI companies through a comprehensive
National AI Policy which is soon to be launched by the There needs to be a
Ministry of IT & Telecom⁽¹³⁾. greater push for
trainings and public
However, there are some key challenges to be addressed and private
in terms of the governance of the AI ecosystem in partnerships
Pakistan. To begin with, the government needs to ensure between the
that complementary industries such as the financial government and
sector and academia are up to date with the needs and
various stakeholders
requirements of the AI companies in Pakistan. Secondly,
to create an
it is also critical to ensure that the local industry
attractive ecosystem
prepares and facilitates AI adoption for Pakistani
organizations and use cases as well as exporting their and talent pipeline
services. Finally, if the AI sector in Pakistan is to flourish, for companies
it is critical that the legal framework for the regulation of working in AI.
AI is comprehensive. For example, Pakistan’s IPO office is
currently not designated to file AI patents. Pakistan’s
government currently ranks 92 out of 172 on Oxford Hussain Shahbaz (Data
Insight AI Readiness Index 2022 ⁽¹⁴⁾ and in order to ensure Science Expert)
that the country is able to capitalize on the global
demand for AI, it is critical that this situation is remedied.
 11
AI Policy Considerations for Pakistan
For the People

In order to ensure that the talent of Pakistan is well positioned in the

international trade market, it is critical that the government and all
associated parties collaborate to ensure that a robust talent pipeline
is in place. Moreover, it is important that the talent in Pakistan is
appropriately trained to work in and adopt to a dynamic ecosystem.
Universities need to collaborate with the private sector to ensure that
proper technical training in ML & Deep learning is offered to students
as a core course. The government also needs to support ed-tech
platforms that are available for professionals in the industry to upskill
and reskill.

For the Organizations

To bolster organizations working with AI, the government needs to

promote the ease of doing business in such a field. This can be done
by ensuring the availability of the internet and creating
In order to bolster
infrastructure theco-working
such as growing AIspaces.
marketMoreover,
and ensurethethat a proper
government
regulatory
also needsframework
encourageisAIput in place,across
adoption the government
industries of
to Pakistan has
ensure that
taken some across
companies notablevarious
steps. To begin with,
sections and the government
industries has to fully
are able
utilize AI. The government can also facilitate organizations by
improving the processes around registering patents and receiving
payments from abroad.

For the Ecosystem

The needs of the ecosystem at large must also be considered. To

ensure that Pakistan is able to house a thriving AI industry, there
must be greater dialogue between the private and public sector. The
government must make the necessary investments through funding
so that relevant opportunities are pursued. Moreover, there also
needs to be a focus on research and monitoring. The impact of laws
and policies put in place related to AI and IT must be mapped to so
that the government has accurate information about the ecosystem.
Finally, the government also needs to ensure that the needs of the
fast-growing freelance market of Pakistan which is sure to be a
critical player in the AI ecosystem is taken into consideration in all
policies.
 12

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This report was presented at the Artificial Intelligence Summit 2023

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