SAP warns Pakistan businesses against costly AI adoption without strategy
KARACHI (News Desk): Businesses in Pakistan risk increasing their operational costs rather than improving productivity if they adopt artificial intelligence (AI) without a clear strategy, integration with enterprise data and alignment with existing business processes, senior SAP executives have warned.
Speaking at a media roundtable held alongside SAP Innovation Day in Karachi on Wednesday, Ahmed Al Faifi, Senior Vice President and Managing Director for Middle East and Africa North at SAP, stressed that businesses needed a structured approach to AI adoption to translate technological investment into measurable economic benefits.
“AI is not cheap. Businesses need a strategy that connects artificial intelligence with enterprise data, business processes and people,” Al Faifi said, cautioning that adopting AI without integrating it into existing operations could increase costs and complexity instead of delivering business value.
His remarks highlight an important challenge for Pakistani businesses as they increasingly explore AI-powered technologies amid growing pressure to improve productivity, operational efficiency and competitiveness in domestic and international markets.
For Pakistan’s corporate sector, the challenge extends beyond acquiring AI tools to developing the digital infrastructure, organisational capabilities and skilled workforce required to use these technologies effectively.
Al Faifi’s remarks also carry significance for the country’s small and medium-sized enterprises (SMEs), which could benefit from digitalisation but often face financial and technical constraints in adopting advanced technologies.
The discussion highlighted opportunities for Pakistani SMEs, particularly exporters, to strengthen their competitiveness through digital systems that improve financial record-keeping, product traceability, regulatory compliance, sustainability reporting and corporate governance.
Improved digital processes could help smaller businesses meet the increasingly demanding requirements of international buyers and markets, while strengthening transparency and operational management.
Saqib Sabah, Head of MEA North Growth Cluster at SAP, said Pakistan had considerable potential to contribute to the regional and global technology ecosystem through its skilled workforce and growing technological capabilities.
“Pakistan has good education, talent and, more importantly, ambition. The ability and willingness to learn and develop are important assets of this country,” Sabah said.
However, workforce preparedness remains a critical component of the country’s digital transformation, particularly as businesses introduce automation and AI into their operations.
Al Faifi emphasised continuous learning and digital literacy, noting the importance of preparing employees and professionals to work alongside emerging technologies.
SAP highlighted its education initiatives, including approximately 400,000 student training days supported over the past five years, as part of its efforts to strengthen digital skills and workforce development.
The company also confirmed ongoing engagement with Pakistan’s Higher Education Commission, Ministry of Information Technology and the government, indicating that further developments could be announced in the coming weeks.
The discussions also highlighted the importance of strengthening digital infrastructure and cybersecurity alongside education and skills development to ensure businesses can adopt emerging technologies securely and sustainably.
For Pakistan, where SMEs play an important role in employment, manufacturing and exports, the effective adoption of digital technologies could offer opportunities to improve productivity and access international markets.
However, the pace and benefits of AI adoption will depend on businesses’ ability to develop clear investment strategies, integrate technology into existing operations and build the skilled workforce needed to support digital transformation.
The SAP discussion underscores that AI adoption is not simply a technology investment but a broader business transformation requiring financial planning, organisational readiness and sustained investment in human capital.