Pakistan must devise a governance model for Artificial Intelligence (AI) that draws lessons from the European Union’s (EU) regulatory framework and China’s strategic investment approach, thus balancing innovation with ethical oversight in times when AI is reshaping global economies. The global economies, industries, and governance structures are undergoing rapid transformation in the current times, owing to Artificial Intelligence (AI). The approach to AI, however, varies significantly across regions which reflects different economic priorities, regulatory frameworks, and political philosophies. Among multiple models of AI governance, the EU and China have emerged as two distinct models for AI governance as China prioritizes AI-driven economic and strategic advancements with a state-led approach

The choice of the EU and China as comparative models is deliberate. The EU represents a risk-based, human-centric regulatory approach, emphasizing data protection, ethics, and transparency. China, on the other hand, exemplifies a state-led, investment-heavy AI strategy, using AI for national security, economic expansion, and technological dominance. Pakistan, facing the dual challenge of rapid digitalization and regulatory uncertainty, can draw valuable insights from both approaches to formulate a hybrid AI governance model that fosters innovation while addressing ethical and security concerns. By studying the EU’s rigorous regulatory framework and China’s aggressive investment strategy, Pakistan can establish an AI policy that balances technological advancement with ethical oversight, ensuring sustainable growth in AI-driven industries.

The EU has positioned itself as a global leader in AI governance by emphasizing ethics, transparency, and human rights. The EU AI Act, proposed in 2021 and set for full implementation by 2025, classifies AI applications into four risk categories: unacceptable risk, high risk, limited risk, and minimal risk. This risk-based approach ensures that AI applications in sensitive areas such as healthcare, law enforcement, and financial services are subject to stricter regulations. Additionally, the EU emphasizes data privacy and AI transparency. The General Data Protection Regulation (GDPR) significantly influences AI governance by restricting the collection, storage, and use of personal data. The EU also promotes AI ethics through the High-Level Expert Group on AI, which established principles such as fairness, accountability, and human oversight. These regulatory mechanisms ensure that AI development aligns with democratic values, safeguarding individual rights while fostering innovation.

China, in contrast, has adopted an AI-first approach that prioritizes rapid innovation, economic growth, and strategic technological supremacy. The New Generation Artificial Intelligence Development Plan (2017) outlines China’s goal of becoming the world leader in AI by 2030. Unlike the EU, China focuses heavily on state-led investment, AI infrastructure, and the integration of AI into national security, defense, and surveillance systems. Regulatory measures in China are tailored to align AI governance with state control, ensuring that AI technologies comply with national security objectives and social stability principles. The Interim Measures for the Management of Generative AI Services (2023) regulate AI content and require AI firms to align with government-approved datasets. While China has introduced AI ethics guidelines, they are secondary to the government’s emphasis on AI as a tool for economic and political advancement. This approach has propelled China to the forefront of AI innovation, making it a global AI hub with vast commercial and military applications.

Pakistan’s National AI Policy (2023) is a commendable step toward integrating AI into governance and industry. The policy recognizes the role of AI in economic growth, education, and public services. However, in comparison to the structured AI strategies of the EU and China, Pakistan’s approach lacks a clear AI governance framework, as there is no structured roadmap detailing short-term, mid-term, and long-term AI adoption goals. The country also faces a deficit in AI infrastructure and investment, as Pakistan has yet to establish AI research hubs, supercomputing centers, or dedicated funding for AI startups. Ethical AI regulations remain underdeveloped, with no clear guidelines on AI ethics, data privacy, or bias mitigation, unlike the EU’s framework. The absence of sectoral AI integration strategies means Pakistan has yet to formulate structured plans for industries such as agriculture, healthcare, and manufacturing. Additionally, Pakistan struggles with talent development and retention, with AI professionals seeking better opportunities abroad due to limited career growth and investment in AI education. Addressing these gaps requires a more structured, well-funded, and strategically aligned AI policy to ensure Pakistan remains competitive in the global AI landscape.

To strengthen its AI governance, Pakistan can adopt a hybrid approach, incorporating elements from both the EU’s ethical framework and China’s strategic investment model. China’s phased approach to AI development ensures continuous progress in AI adoption. Pakistan should formulate a structured National AI Roadmap with clearly defined objectives for the next 5, 10, and 20 years. Investing in AI infrastructure and research and development is critical. Pakistan needs AI supercomputing centers, AI incubators, and dedicated AI investment funds to support research and development. Collaboration with China through the China-Pakistan Economic Corridor (CPEC) Digital Corridor can facilitate AI infrastructure development. Implementing ethical and risk-based AI regulations is crucial. Pakistan should establish risk-based AI regulations, categorizing AI applications based on their potential impact. Like the EU, Pakistan must introduce strict data protection laws similar to the GDPR to ensure AI applications respect user privacy and prevent misuse. Integrating AI into key industries will maximize economic impact. Pakistan should create sector-specific AI adoption frameworks and provide financial incentives for businesses to integrate AI-driven solutions.

Strengthening AI education and talent retention is essential. Pakistan should make AI education mandatory in universities, launch AI scholarships and fellowships to train a skilled AI workforce, and introduce incentives such as research funding and competitive salaries to reduce brain drain. Enhancing AI for national security should be a priority, with AI-driven cyber defense systems, border security technologies, and counterterrorism tools mirroring China’s AI integration into security domains. Expanding international AI collaboration will allow Pakistan to benefit from global expertise. Engaging with the EU on AI governance and regulatory best practices, expanding AI collaboration with China through CPEC, and joining global AI forums such as UNESCO AI initiatives will help Pakistan align its AI policies with international standards.

Pakistan stands at a critical juncture in AI governance. While the National AI Policy (2023) is a step forward, it requires refinement to align with global best practices. By adopting China’s AI-driven investment strategy and the EU’s ethical AI governance model, Pakistan can develop a balanced, effective AI policy that fosters innovation while ensuring responsible AI deployment. A structured roadmap, robust AI infrastructure, ethical regulations, and international collaborations will be key to positioning Pakistan as a competitive AI player in the coming years. If Pakistan successfully integrates lessons from both the EU and China, it can develop an AI governance framework that not only supports technological innovation but also safeguards ethical and national security interests, ensuring a resilient and progressive AI ecosystem.