AI Costs 3,700% More in Pakistan

Artificial intelligence tools are becoming increasingly affordable worldwide, but they are up to 3,700 percent more expensive for workers in Pakistan. This is due to AI services being priced in US dollars, while local salaries are significantly lower. A new analysis by Densight Labs reveals that an AI subscription costing Rs. 6,000 per month takes up 15 percent of Punjab's minimum wage of Rs.

40,000. In comparison, the same AI cost represents only 0.4 percent of a $5,000 monthly salary in the US. Consequently, AI tools are approximately 3,700 percent more expensive in Pakistan.

In Lahore, a junior worker would need to save about 48 minutes of work daily to recover the cost of a Rs. 6,000 AI subscription. For a department head, the required saving would be only six minutes a day. Purchasing the same AI tool for every employee may not be financially viable for Pakistani companies, particularly for low-income workers.

However, the analysis suggests that AI can be more cost-effective for senior employees or for repetitive tasks. For instance, if AI increases a department head's work efficiency by 30 percent, an employee earning Rs. 500,000 monthly could save Rs. 37,500 in time. This results in a roughly six-fold return on investment. Additionally, AI can help new employees become productive faster.

Research involving over 5,000 support workers shows that those using AI became 34 percent more productive. Furthermore, workers hired for two months reached the productivity level of those with six months of experience.

The analysis also highlights the potential of automating repetitive tasks. It estimates that a minimum-wage worker costs Rs. 9 to process an invoice, while AI can perform the same task for less than Rs. 3. This leaves the worker to handle exceptions and more complex tasks.

However, AI does not always result in cost savings. A study indicates that consultants using AI on tasks outside its capabilities were 19 percent less likely to arrive at the correct answer. Additionally, MIT estimates that only around 5 percent of organizations have achieved measurable financial gains from enterprise AI.

As AI technology becomes increasingly affordable, falling in price by around 13 times per year since 2023, Pakistan cannot solely rely on waiting for costs to decrease. AI could potentially reduce the incentive for outsourcing labor-intensive services. In 2025-26, Pakistan's call center and BPO exports reached $300 million, a sector that could face growing pressure from AI.

The report recommends a pragmatic approach for Pakistani companies: utilize AI where it can clearly save time or money, rather than providing each employee with an AI subscription. The crucial question is not whether AI is worth purchasing, but whether the tool can recover its cost in rupees.