Amazon Web Services (AWS), in association with International Data Corporation (IDC), released a whitepaper titled "Unlocking the Full Potential of AI in the Middle East." This whitepaper outlines the transformative potential of artificial intelligence (AI) across the Middle East, specifically in the United Arab Emirates (UAE) and Saudi Arabia.
They surveyed 166 organizations across different verticals, such as government, hospitality, financial services, gaming, and retail, to show how AI can drive economic growth, social advancement, and environmental sustainability.
In the UAE and Saudi Arabia, 88% of organizations that have invested in AI report improved business performance over the last two years. Meanwhile, companies still planning to adopt AI are lagging, showing significantly weaker outcomes.
Further, a staggering 98% of surveyed organizations believe that AI will transform their businesses, compelling them to prioritize AI-driven initiatives that deliver measurable results improvements. Nearly 28% of organizations already invest in AI, while 50% plan to invest in the future.
The whitepaper states, “The global pursuit of a competitive AI ecosystem has become a priority for nations worldwide,” reflecting a growing recognition of AI as a catalyst for economic growth and innovation.
The survey further reveals that a large portion of generative AI expenses revolve around the IT infrastructure needed for developing and fine-tuning models. Approximately 18% of the budget goes to external service providers for developing and managing the technology stack, such as AI models and infrastructure, and 11% is allocated to help internal teams lead GenAI initiatives.
At the same time, organizations face challenges in accelerating AI adoption. The key challenges include a lack of skills, unpredictable costs, and unclear privacy and security regulations. 51% of organizations in KSA and 46% in the UAE have faced a lack of skills and expertise to build and deploy AI. The unpredictable cost of AI is another concern, affecting 40% of organizations in KSA and 49% in the UAE, making it hard to plan financial investment in AI technologies.
The survey highlights that most organizations in Saudi Arabia and the UAE are currently at lower AI maturity levels but aim to enhance their AI capabilities over the next two years. Currently, 52% of organizations are at Level 1 (Ad Hoc), where AI is used in isolated silos without a formal strategy. Another 10% are at Level 2 (Opportunistic), applying AI in specific departments, 12% have reached Level 3 (Repeatable), 20% are at Level 4 (Managed), and only 6% are at the highest level, Level 5 (Optimized).
Looking ahead, organizations are aiming to move up the maturity scale, highlighting a strong commitment to improve their AI capabilities and align them with business objectives.
The government in the Middle East has also taken initiatives to drive AI adoption. Around 73% of organizations in Saudi Arabia and 76% in the UAE acknowledged the importance of national AI regulations as frameworks for adopting AI. Furthermore, 70% of respondents find it necessary to have skills training programs to address talent shortages in the field.
The government has taken proactive steps to build national AI competencies among citizens,” states the report, showing a strong commitment to creating a workforce that can effectively use AI technologies. It has launched AI firms that have given notable innovations, such as the Falcon Foundation Model Family large language models (LLMs).
“AWS excels in data integration, allowing us to easily consolidate and access information across internal and external data sources. AWS SageMaker’s comprehensive AI platform equips our data science team with the requisite tools to drive customer-centric innovation by leveraging data from various sources in a secure and trusted manner.” Bashar Khatib, Head of Data
With governments actively promoting AI adoption and innovation through supportive policies and investments, businesses are encouraged to embrace this technological shift. By focusing on AI-centric ecosystems and responsible AI policies, Saudi Arabia and the UAE are striving to become leaders in the global stage of AI and define the future.