AI, machine learning and big data are in the process of transforming major economies as well as developing markets like Pakistan and bringing unprecedented productivity and smarter consumption. AI and machine learning are helping consumers make better, faster choices. Whether it is virtual reality try-ons, chatbots that solve issues instantly, or personalised product recommendations, technology is redefining what it means to shop, bank and travel.

The Pakistani consumer has evolved – young, tech-savvy and always connected. With 65% of the population under 30, there is a huge demand for seamless digital experiences. Apps like Facebook, TikTok, YouTube, and Instagram have become powerful consumer portals, fuelling the desire for instant gratification. This generation has no time to wait in line or sift through endless choices. They want solutions fast, AI is delivering and brands are listening. For example, L’Oréal Pakistan teamed up with Bagallery to offer online virtual try-ons for L’Oréal Paris, Maybelline and NYX products. Customers can upload a photo and then experiment with various shades, using the power of augmented reality and facial recognition technology. It is private, with no data stored, and easy to use with just a few clicks. Imagine trying on lipstick from your phone without needing an app. Twenty years ago, this meant going to a store to sample shades; now, it is just a tap away.

Platforms like Daraz and Foodpanda are leveraging big data and predictive analytics to create hyper-personalised shopping experiences. Daraz has tons of user data, which it uses to refine recommendations and anticipate consumer needs. Have you recently bought an air conditioner or a fridge? Do not be surprised when Daraz’s algorithms start showing you offers on sofa sets. They know you may be setting up a home or refreshing a space and are using this data to stay one step ahead, providing you with options you might not even have thought of yet. Foodpanda has become a master at learning from user preferences and behaviours. Every time you place an order, the platform learns more about your tastes. If you are a fan of burgers, it will populate your recommendations with more burger joints. Foodpanda’s machine learning-driven algorithms will improve as they gather more data, and the recommendations will become smarter, more refined, and, in a way, even ‘know’ your culinary cravings. For some, this level of personalisation may feel invasive – but it is undeniably convenient.

HBL, one of Pakistan’s largest banks, has implemented AI-driven chatbots to support customer service. Chatbots are allowing banks to offer 24/7 support, meaning customers need not wait for office hours or queue in lines. Whether they have a question about account balances, want to block a card, or need assistance with an online transaction, chatbots manage these enquiries instantly. This leads to a happier customer base, while banks benefit from reduced overheads. For multilingual Pakistan, chatbots bring the added benefit of linguistic versatility. With AI, banks can offer customer support in multiple languages, enhancing accessibility and satisfaction. The technology also collects data on customer interactions, using it to enhance the service by improving chatbot responses and providing more relevant recommendations. Careem has also adopted AI to optimise the user experience. Its system uses real-time data to make smarter decisions and enhance efficiency, considering factors such as traffic, weather conditions, prayer times, and Iftar times during Ramzan. Careem’s predictive analytics help determine estimated arrival times (ETA), thereby keeping customers informed. As Careem’s capabilities expand, we can expect further conveniences, like autonomous or self-driving cars capable of navigating Karachi’s streets smoothly, adjusting for potholes and road construction. It is a glimpse into a future where AI-powered convenience becomes part of daily life.

The applications of AI in Pakistan extend to other industries as well and they are capitalising on these advances to offer more personalised services. It is expected this will massively transform the healthcare industry and the education sector. Already, according to some estimates, there are more than 40 start-ups in Pakistan related to education. Edtech companies are leveraging AI to create adaptive learning platforms and virtual classrooms. Students using these tools may receive extra help on difficult topics, while other students are encouraged to explore more challenging material. Such AI-driven systems democratise education by providing access to quality learning resources.

One of the biggest challenges for Pakistan is preparing its workforce for the AI-driven future. With over 60% of the population under 30, equipping this demographic with digital skills is crucial. Pakistan’s education system, as well as corporate training programmes, will need to pivot towards tech-centred learning, focusing on data science, machine learning, and coding. Organisations that upskill their employees are likely to lead in the AI-powered economy.

Although the benefits of AI are undeniable, there are ethical considerations that society must address; in particular, a heavy reliance on AI will lead to job losses. For Pakistan, with its large, young workforce, this concern needs careful planning, as it will be important to balance automation with job creation, ensuring that technology complements human labour rather than replace it. As companies adopt AI, they should consider retraining or repositioning employees who may be affected by automation. Privacy is another concern, and companies need to implement robust data privacy policies, providing transparency to users and adhering to data protection laws.

Despite the challenges, the digital revolution promises an era of unparalleled convenience and empowerment. On-demand, personalised experiences powered by AI will not only cater to the wants of Pakistan’s young consumers; they will also open new avenues for businesses. Although doomsayers may predict that AI will disrupt jobs, history shows that technological advancement often leads to new job creation, opening doors to roles we have yet to imagine. However, to benefit from the opportunities AI will bring, Pakistan must invest in equipping its young people with the skills needed to thrive in this new world.

This means adapting our education system and focusing on digital literacy.

AI is not a tech trend; it is a gateway to a smarter Pakistan. Marketers and consumers alike have a stake in this digital future, making every click, every virtual try-on, and every chatbot conversation a step toward a more dynamic economy. Let us embrace it and get ready for a new world of possibilities.

Noaman Asar is CEO, Oula.