AI Could Transform 61% of Pakistan's Service Jobs

AI Could Transform 61% of Pakistan’s Service Jobs

ByAftab Ahmed

Artificial intelligence is poised to significantly impact Pakistan’s employment landscape, particularly within the service sector, according to a World Bank report. The study reveals that 61% of service sector workers occupy roles with above-average exposure to AI technologies, highlighting both opportunities for enhanced productivity and risks of job disruption.

Varying Impact Across Sectors

The World Bank’s analysis, titled Job Opportunities and AI in Pakistan, notes that while Pakistan’s overall AI exposure is below the median occupational score by 0.48 standard deviations in 2024, the effect is unevenly distributed. Service industries such as wholesale and retail trade, finance, insurance, real estate, and education show particularly high AI exposure, with over 80% of workers in these fields facing potential AI-related changes.

In sharp contrast, sectors like manufacturing and other industrial fields have limited AI exposure, accounting for only 7% and 5% respectively. Agriculture, employing a large portion of the workforce, remains largely insulated with less than 1% of jobs impacted by AI.

Balancing Job Transformation and Productivity Gains

The report emphasizes that AI does not necessarily lead to immediate job losses. Approximately 18% of Pakistani workers perform roles characterized by both high AI exposure and significant human-AI complementarity, suggesting the technology can enhance rather than replace their work. Real estate and education sectors especially showcase this complementary potential, indicating avenues for AI-assisted productivity improvements.

Meanwhile, wholesale and retail trade represent a critical front due to their combination of a large workforce and substantial AI exposure. This suggests the sector will play a pivotal role in how Pakistan navigates AI’s transformative effects on employment.

Implications for Pakistan’s Workforce

Given these findings, the World Bank underscores the importance of equipping Pakistan’s workforce with relevant skills and supporting investments to maximize the benefits and mitigate risks associated with AI integration. Effective adoption by businesses and workers will ultimately shape the outcome, making proactive measures essential.

For Pakistan, where the service sector forms a sizable part of the economy, adapting to AI-driven changes is critical to maintain growth and employment stability. Preparing workers for evolving job requirements while enabling businesses to harness AI’s productivity potential could define the country’s economic trajectory in the coming years.

As stated by a World Bank representative, this landscape “highlights the urgent need to prepare workers for changing job demands and foster AI utilization that drives productivity.”

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