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AI investments drive business growth in Saudi + the UAE: Some 88% of organizations in the Kingdom and the UAE that have made investments in artificial intelligence reported improved business performance over the past two years, according to an International Data Corporation survey (pdf). Currently, 28% of surveyed organizations in both countries are investing in AI, 50% plan to invest, and 21% have no plans for AI adoption.
Investment targets across the value chain: Some 69% of Saudi-based organizations plan to invest in data literacy and AI skills enablement over the next 12-18 months, followed by 60% focusing on AI solution/model security. Investments in AI-enabled tools/apps are prioritized by 54%, while 41% target data architecture, engineering, and management and advanced analytics and AI at the edge. Additionally, 29% intend to invest in AI-ready digital infrastructure / data centers, and 24% are focused on integrated AI use-case development. Smaller priorities include change management (21%), responsible AI (19%), and AI platforms for model life-cycle management (12%).
Generative AI investment by business function shows corporate strategy leading the way, with 23% of surveyed organizations in both countries already investing, and 41% planning to do so. Software development follows, with 11% currently investing and 59% planning. Facilities and customer service, though reporting the lowest current investments at 4% and 3%, have the highest planning rates, at 84% and 83%.
Spending allocations for generative AI: The largest share of genAI spending in the Kingdom is allocated to public cloud infrastructure, accounting for 25% of earmarked investments in the next 18 months. External service providers follow closely, receiving 24% of investments. Spending on external AI platforms amounts to 16%, while dedicated infrastructure captures 13%. Internal teams, including data scientists, developers, and IT staff, receive 9% of the budget for generative AI initiatives.
Challenges to AI adoption: Key obstacles include unclear privacy and security regulations, shortage of talent, unpredictable costs, limited access to GPUs/servers, and data issues including security risks and inefficient architecture.
Preferred partners for generative AI in the next 12 months: Local companies are exploring partnerships to support generative AI initiatives, with 53% favoring cloud providers, 43% opting for IT consulting partners, and smaller shares targeting enterprise application providers (22%) and GenAI model vendors (18%).
