AI Adoption and National Economic Competitiveness: A Comparative Study of Industrial and Economic Leadership in Pakistan and the UK

Abstract

Artificial intelligence (AI) has emerged as a strategic driver of industrial competitiveness and national economic competitiveness. This study comparatively examines AI adoption and its influence on industrial and economic leadership in Pakistan and the United Kingdom. Guided by the Technology–Organization–Environment (TOE) framework, the study employed an interpretivist qualitative research design. Semi-structured interviews were conducted with 18 industry leaders, policymakers, AI specialists, and academics, and the data were analysed using reflexive thematic analysis. Five themes emerged: AI integration for industrial competitiveness, workforce readiness and AI capability, policy and regulatory support, innovation and national economic leadership, and structural barriers to AI adoption. The findings reveal that the United Kingdom benefits from mature AI ecosystems, coordinated governance, advanced digital infrastructure, and strong workforce development, enabling greater industrial competitiveness. Conversely, Pakistan demonstrates significant AI potential but faces challenges related to infrastructure, investment, workforce capability, and institutional coordination. The study concludes that sustainable AI-driven competitiveness depends on aligning technological capability, organizational readiness, human capital, and supportive policy environments. These findings provide theoretical and practical insights for governments, industries, universities, and policymakers seeking to strengthen AI-enabled industrial transformation and long-term national economic competitiveness.

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