By Muhammadi
Artificial Intelligence (AI) is rapidly evolving what power means in international politics. In the contemporary era, national power, such as military strength and economic influence, will rely not merely on geography, population and natural resources, but also on vast amounts of data, high computing capacity, the manufacture of semiconductors, data communication networks and large numbers of technological experts.
For Pakistan, this evolution is unfolding within a challenging regional landscape by India’s increasing influence, the growing strategic rivalry between the United States (US) and China, and rising economic and strategic challenges to national security and development, and how the country maintained a balanced relationship with both giants.
The current competition between China and the US is over future technologies and how to utilize it to fuel growth in both domestic and global markets. Both China and the US have great potential in advanced research, semiconductor design, cloud computing, venture capital, digital infrastructure, and the mass application of technology in many sectors. The competition is no longer limited to which country develops the most advanced AI models, but also to control chips, data, operating systems, industry standards, and supply chains, as well as to shape the global framework for emerging technologies.
South Asia is becoming a significant arena between US and China over technological supremacy. US views India as a ‘major strategic partner for meeting challenges in the Indo-Pacific, including the building of alternative supply chains’. India’s technological partnership with the US, besides its growing domestic technology sector, is a driver of the evolving regional strategic environment.
China’s focus remains on huge investment in energy and infrastructure in Pakistan under the China-Pakistan Economic Corridor (CPEC). The recent cooperation has increasingly focused on harnessing and developing mutual interest in AI, the digital economy, cybersecurity, and 5G & ICT to create cost-effective digital infrastructure and Human Capacity for enabling and supporting large-scale and rapid industrialization and development in both countries under CPEC. One such reported CPEC-related framework for cooperation is the China-SCO Pakistan AI Application Cooperation Center and a broader ICT cooperation plan for 2026–2030.
Opportunities as well as challenges are opening up for Pakistan with the development of AI. Agriculture, education, health, taxation and natural disasters can all be improved with the help of AI. In Gilgit-Baltistan, the mountainous region of Pakistan, early warning systems for natural disasters and AI-based weather forecasting can be helpful for people living in remote areas of the country. In schools and universities, AI can be used for creating intelligent learning systems to support students who are not getting adequate learning due to a lack of qualified teachers. In government, AI can help in reducing bureaucratic red tape, tax evasion and improving the delivery of public goods and services.
The National AI Policy 2025 of Pakistan also plans to create a national AI ecosystem, stimulate research and development, and develop human resources. Its goals are ambitious: to establish a national AI ecosystem; create and develop national infrastructure and human resources for AI innovation and development; train one million people in AI and prepare thousands of trainers. However, these goals would be worthless if training is not linked with employment opportunities in research and development, entrepreneurship, and industries of national importance.
For Pakistan, the first strategic priority should be to pursue technology diversification. This would involve expanding cooperation with China in research, technological infrastructure, and industrial applications and, at the same time, ensuring continued access to American and other international research programs, software ecosystems and world-class education facilities. This strategy would lessen dependence on a single supplier and preserve flexibility amid evolving export controls.
Pakistan should invest in indigenous capacity. It includes Universities, research centers, and technology companies and provides them with adequate resources, computing power, quality data sets and industry linkages. Also, the scope of AI education should not be restricted to computer science but should also expand to other disciplines to create long-term indigenous human resources to evaluate, adapt and even produce AI.
Pakistan must anchor AI cooperation to CPEC’s second phase (CEC 2.0) as well as other current and future economic priorities. Digital connectivity, agricultural productivity, geological exploration for mineral resources, supply chain management and climate forecasting, inter alia, are areas that could greatly benefit from high-quality cooperation and thus from the establishment of joint research centers and technology partnerships which also include training and knowledge transfer as well as local employment generation and support to Pakistani companies.
Finally, Pakistan needs to strengthen its AI governance through issues of data protection, safeguarding of intellectual property, technological accountability, and ensuring cybersecurity. It should use all forums, including the United Nations, SCO and other relevant regional and global forums to promote responsible AI governance, equal access to technology and regional confidence-building.
AI is reshaping South Asia’s geopolitical environment by connecting technological innovation with military rivalry, economic power, and diplomatic influence. Pakistan is at the crossroads of both challenges and opportunities, amid the technological competition between the US and China. The outcome will depend on Pakistan’s capability to convert external partnerships into sustainable national capabilities, and the country should adopt a balanced foreign policy approach towards both technological giants.
Indeed, it is essential for Pakistan to develop and implement a pragmatic, diversified, and nationally owned AI policy. Eventually, it should not only form partnerships with technological powers but also develop indigenous AI capabilities, which would endow Pakistan with strategic relevance. Amid the evolving AI geopolitics, technological capabilities must be a pillar of Pakistan’s strategic independence, rather than another source of dependence.
Author: Dr. Muhammadi – Associate Director of Research at the Center for International Strategic Studies (CISS), Islamabad, currently based at the joint CISS-KIU Research Center in Gilgit-Baltistan. He also serves as an Adjunct Faculty Member at Karakoram International University (KIU). He holds a PhD in Politics and International Relations from Shanghai International Studies University (SISU) and was named a 2025 InteRussia Fellow in nuclear technologies.
(The opinions expressed in this article are solely those of the author and do not necessarily reflect the views of World Geostrategic Insights).