By Nazneen Ahmad

How AI Is Transforming UAE SMEs: Unlocking Secrets to Global Success

The United Arab Emirates (UAE) is leading the way in the Middle East when it comes to technology, especially in how small and medium-sized businesses (SMEs) use Artificial Intelligence (AI). This shift goes beyond simply using new tools—it is changing how these businesses operate, connect with customers, and compete on a global scale. 

AI for UAE Businesses

Recent McKinsey research shows that over 60% of businesses in the GCC region are adopting artificial intelligence (AI) in at least one aspect of their operations. To support this shift, Creative Zone, a top business setup consultancy in the UAE, has partnered with Fahed Bizzari to launch a special edition of the ChatGPT Accelerator. This enterprise aims to refine AI literacy for entrepreneurs in the UAE. 

The workshops aim to improve creativity, increase productivity, and raise output for businesses across the region. Entrepreneurs will discover how to utilize advanced AI and language processing tools to enhance internal operations and communication, under the guidance of Fahed Bizzari's knowledge. This partnership aims to assist businesses in optimizing processes, improving decision-making, and discovering new growth possibilities, effecting a significant influence on the future of entrepreneurship in the GCC.

AI Improving Operations and Competence in UAE SMEs

Small and medium enterprises in the UAE are adopting AI to simplify processes, improve output, and lower expenses. AI helps here in automating repetitive tasks and enhances inventory management through predictive analytics. Many companies are also utilizing AI to analyze customer behavior, enabling them to develop tailored marketing tactics and enhance customer support with AI-driven chatbots. This not only improves customer satisfaction but also allows businesses to operate with smaller teams, directing their employees towards more significant tasks.

A good example is Bayzat, which uses AI to streamline HR and employee benefits, helping companies cut operational costs. In customer relationship management (CRM), AI is also influencing outcomes. Zia, Zoho’s AI assistant, aids small and medium enterprises in saving time and money while enhancing customer service and operational capability.

AI’s Impact on Traditional Banks in the UAE

AI is challenging traditional banks in the UAE to adapt or risk falling behind fintech startups. Solutions like Bankbuddy and Mashreq, which uses AI bots for customer support, are changing how banks interact with their customers. These AI tools help reduce costs in customer service, fraud detection, and overall operations, while allowing banks to stay competitive against newer, tech-savvy competitors.

AI is also promoting financial inclusion by making financial services more accessible to underserved small enterprise businesses and individuals. Platforms like Finllect are connecting lenders and borrowers through AI, creating a more inclusive financial system in the UAE.

Examples of AI in Action

Some UAE companies are leading the way in AI adoption. Derq, a Dubai-based startup, uses AI for smarter traffic management to make roads safer. Synerise, another company, offers AI-powered platforms that help businesses predict customer needs and improve loyalty. These examples show how AI is improving business operations and driving growth in various industries.

Digital Transformation and Expanding Global Reach

AI is pushing significant transformations for small and medium-sized enterprises, facilitating their global expansion. Using cloud-based AI tools, SMEs can expand without requiring extensive IT infrastructure. This access to technology enables them to rival larger firms and promotes creativity. In the UAE, the SME sector is rapidly expanding, backed by government initiatives such as the National SME Programme, which helps businesses in shifting to a more digital operational model.

Although there are numerous advantages, there are also difficulties. These include the demand for skilled labor and worries regarding data privacy and the ethical use of AI. The UAE is tackling these challenges by providing AI training programs for Emirati men and women and establishing regulations to direct AI application across various sectors. Moral inquiries, such as the methods businesses use to manage data and ensure transparency, are emerging as a central concern in AI implementation.

The Prospective Vision

AI will keep influencing the future of SMEs in the UAE. The government's goal is to establish a setting where AI aids businesses and also serves the interests of society. In sectors such as healthcare, finance, and logistics, AI is currently having an impact, with SMEs excelled in fields like predictive maintenance, fraud detection, and personalized healthcare.

Events such as the AIM Congress provide SMEs the opportunity to connect, gain knowledge, and embrace AI technology, contributing to the sector's global expansion. The UAE seeks to establish one million SMEs by 2030, with AI significantly contributing to this change.