Latest news with #AI-friendly
Business Recorder
23-07-2025
- Business
- Business Recorder
Pakistan's path to a $1 trillion economy: embracing AI for growth
Pakistan stands at a crucial crossroads in its economic journey. With a GDP of $337.9 billion in 2023, the country has immense untapped potential. While the IT sector contributes only 1% ($3.5 billion) of GDP, this number could surge exponentially if Pakistan embraces an AI-driven economic transformation. By adopting AI-friendly policies, reducing import duties on essential technology, and formulating special electricity tariffs for AI industries, Pakistan could unlock $1 trillion in economic growth over the next decade. Artificial intelligence is no longer just a futuristic concept—it is the backbone of modern economies. Countries like China, the United States, and India have leveraged AI to drive innovation, enhance industrial productivity, and boost exports. Pakistan must follow suit or risk being left behind. Pakistan's current regulatory framework makes it difficult for AI companies to thrive. Import duties on GPUs, AI chips, and high-performance computing equipment remain prohibitively high, deterring investment. A duty-free AI import policy would lower costs for startups and research institutions, enabling them to compete globally. Additionally, electricity remains a major hurdle for AI development. High energy costs and power shortages discourage data centers and AI-driven companies from operating efficiently. A dedicated electricity policy—offering subsidized energy rates for AI industries—would attract global investors and promote local AI-driven research and development (R&D). Despite having a robust tech talent pool, Pakistan's IT exports stand at a mere $3.5 billion. In contrast, neighboring India is set to cross $200 billion in IT exports by 2025. The gap is not due to a lack of talent but rather an absence of structured policies to support AI and IT growth. If Pakistan removes tax barriers for freelancers, eases payment solutions like PayPal and Stripe, and introduces AI-friendly regulatory policies, IT exports could grow to $50-$100 billion by 2035. Tech Special Economic Zones (SEZs) with zero tax on AI startups would further incentivize investment in Pakistan's digital economy. A thriving AI ecosystem requires state-of-the-art digital infrastructure. Countries leading in AI investment—like the UAE, China, and the US—have built AI-powered smart cities, high-speed internet networks, and AI-driven public services. Pakistan must follow a comprehensive model to achieve its target. It should expand 5G and fiber optic networks to enable high-speed AI applications and build AI-powered smart cities with automated public transport, smart grids, and digital governance, and launching government-backed AI innovation labs to foster breakthroughs in healthcare, fintech, agriculture, and security. Pakistan's industrial sector contributes over $75 billion to the GDP, but it lags in automation and AI adoption. To compete with global manufacturing powerhouses like China, Vietnam, and India, Pakistan must integrate AI, robotics, and IoT (Internet of Things) into its textile, auto, and agriculture sectors. AI-driven manufacturing hubs can increase efficiency and output. Drone-based precision farming can optimize water usage and crop yields. Robotics in textile production can reduce costs and improve quality. To scale AI adoption, Pakistan needs investment-friendly policies. Countries like Saudi Arabia and the UAE are pumping billions into AI and data-driven industries. Pakistan must position itself as an AI-friendly investment hub by offering a 5-10 year tax exemptions for AI-driven startups and tech investors and creating a $1 billion AI investment fund to support startups, fintech, and deep tech companies. Streamlining business registration and reducing bureaucratic hurdles for foreign AI investors. Financial technology (fintech) is reshaping global economies. Pakistan's digital payment ecosystem, while growing, still faces roadblocks due to outdated regulations. A regulated cryptocurrency framework and a central bank digital currency (CBDC) could unlock billions in economic value. The government should legalize cryptocurrency trading with proper regulatory oversight, expanding AI-driven fintech solutions for microfinance and digital lending, and integrating AI into banking for automated fraud detection and risk management. AI can revolutionize Pakistan's governance by improving efficiency, reducing corruption, and increasing transparency. The Federal Board of Revenue (FBR) could leverage AI-powered tax collection systems to prevent tax evasion, potentially increasing tax revenues by 2-3% of GDP. Automated tax assessment to eliminate loopholes. AI-driven governance for faster decision-making in public projects. Smart public services reducing bureaucracy through AI chatbots and automation. With AI, digital transformation, and strategic policy shifts, Pakistan's GDP could surpass $1 trillion by 2035 and reach $2 trillion within two decades. The table below highlights potential GDP contributions from AI-driven sectors: Sector Current GDP Contribution (2023) Potential Contribution (2035) IT & AI $3.5B (1%) $100B (8-10%) Manufacturing (AI-driven) $75B $250B Agriculture (AI Precision) $65B $150B Fintech & Digital Economy $20B $150B Smart Infrastructure & IoT $10B $100B Total $337.9B $1 Trillion Pakistan cannot afford to delay AI adoption. The world is moving toward AI-driven economies, and Pakistan must position itself as a global AI hub. With the right policies, strategic investments, and government-private sector collaboration, the country has the potential to catapult itself into the trillion-dollar economy club. The roadmap is clear: remove regulatory barriers, invest in AI infrastructure, attract foreign investment, and integrate AI into governance, industry, and finance. If executed correctly, Pakistan can compete on the global stage and become a leader in AI-driven economic growth. The future is AI. The question is: will Pakistan seize the opportunity or be left behind?
Engadget
30-06-2025
- Business
- Engadget
Ban on state AI laws set to pass, after exemption deals struck on musicians' rights and child safety
If there's one thing the AI industry needs it's more regulation. Yet, soon individual US states might not have much say in what AI companies can and can't do thanks to Trump pleasing senators. That's right, an AI-friendly amendment to the president's tax legislation is on the road to approval — despite concerns that its shoehorning is illegal. The would prevent states from legislating the AI industry for five years, Bloomberg reports. Only states that cooperate will be allowed to access some of the $500 million of funding for AI infrastructure and the like included included in the bill. Senator Marsha Blackburn (R-Tennessee) cleared the way for it, agreeing to a deal on Sunday with Senator Ted Cruz (R-Texas) that would exempt her home state's Ensuring Likeness Voice and Image Security (ELVIS) Act. Signed in early 2024, the ELVIS Act is meant to protect musicians from allowing AI to use their likeness and voice without permission. As part of the new deal, Cruz reduced the ban from ten to five years — because five years of an unregulated AI industry surely won't cause any damage. A fresh draft of the amendment, obtained by Politico , also includes exemptions for "a law or regulation pertaining to unfair or deceptive acts or practices, child online safety, child sexual abuse material, rights of publicity, protection of a person's name, image, voice, or likeness and any necessary documentation for enforcement," as long as they don't place an "undue or disproportionate burden" on AI systems. An earlier version of the provision, that included the decade-long ban, passed the House in May. While Blackburn's decision will likely push it forward, Republican governors across the country have also voiced their disdain for the amendment. On Friday, 17 governors sent a letter asking for its removal (after sucking up about the rest of the tax bill, of course). They stated that it "threatens to undo all the work states have done to protect our citizens from the misuse of artificial intelligence."
Korea Herald
25-03-2025
- Business
- Korea Herald
GS' Huh Tae-soo named founding chair of FKI's AI innovation committee
GS Group announced Tuesday that its Chair Huh Tae-soo has been appointed as the founding chair of the Artificial Intelligence Innovation Committee under the Federation of Korean Industrie, one of the largest business groups here. Since assuming the chair position of GS Group in 2020, Huh has been a strong advocate for AI-driven innovation and digital transformation, integrating AI into GS's business operations. The FKI said his leadership in fostering AI adoption has positioned him as the ideal candidate to lead balanced industrial growth. The committee, structured into five divisions -- policy-making, technology development and expansion, human capital and infrastructure, governance and future growth -- will focus on fostering AI innovation and industry-wide adoption in the digital era. During Huh's opening remarks upon the committee launch, he emphasized the need for proactive AI policies and stronger industry collaboration, stating, "Korea's AI industry is still in its infancy, despite ongoing discussions on the Basic Act on AI and other legislative initiatives." "To address this, we will not only spearhead AI policy discussions but also cultivate an AI-friendly business environment to enhance overall competitiveness." spark@
Yahoo
28-02-2025
- Business
- Yahoo
Microsoft calls US chip curbs a ‘strategic misstep' in global AI race
Microsoft called on Washington to loosen its semiconductor export curbs, warning that the government risked making a 'strategic misstep' in the global AI arms race that could push US allies to use Chinese chips. In a blog post, the tech giant's president Brad Smith wrote that Beijing is using the rules — designed to limit China's access to the cutting-edge technology used to power artificial intelligence — to argue that 'countries can't rely on the US, but China is willing to provide what they need. Under the Biden administration's AI Diffusion Rule, even US allies such as Switzerland, Singapore and the UAE are subject to caps on the number of chips they can buy, forcing them to look elsewhere for the components needed for AI infrastructure, Smith wrote. It comes as the Trump administration is looking to introduce even tougher versions of the controls, Bloomberg reported this week. Exponential growth in demand for computing power means Washington faces a dilemma as US and international firms look to expand overseas, because not every AI-friendly jurisdiction is aligned with the US or insulated from China, a trade expert wrote for the Center for Strategic and International Studies. Countries barred from buying the chips they require may bristle at the US holding back their ambitions, and try to de-risk from Washington rather than China, he wrote. And international makers of advanced chips will be 'more than happy' to grow their market share at the expense of the US in response to the demand, a tech expert argued for the Brookings Institution. Washington's curbs limiting Beijing's ability to buy chips may have the unintended effect of making China more self-reliant and a key exporter in its own right, tech writer Ben Thompson argued: 'The first thing the US should do… is let Chinese companies buy top-of-the-line Nvidia chips,' he wrote. Some analysts, for example, argue that Chinese startup DeepSeek's recent success shows that US controls aren't working and may even be 'counterproductive,' the South China Morning Post reported. But the picture may be more complicated: DeepSeek spent years stockpiling Nvidia chips before the controls took effect, so had the Biden administration moved more quickly, it may not have been as successful, a tech analyst told The New York Times.
