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AI investments fuel business growth in Saudi Arabia and the UAE: Some 88% of organizations in Saudi Arabia and the UAE that invested in AI have seen improved business performance over the past two years, according to a recent International Data Corporation survey (pdf). Currently, 28% are already investing in AI, 50% plan to, and 21% have no plans to adopt the technology.
Data literacy, skills, and modernization lead AI priorities: Some 62% of UAE-based businesses are focusing on data literacy and AI skills enablement, and on AI solution/model security. AI-enabled tools/apps are a priority for 54%, followed by data architecture, engineering and management and advanced analytics at the edge (42%). Around 33% are prioritizing AI-ready digital infrastructure and data centers.
GenAI for corporate strategy is top of mind, while customer service lags behind: Corporate strategy is leading the way in generative AI investment in Saudi and the UAE, with 23% of organizations already investing and 41% planning to. Software development follows, with 11% currently investing and 59% planning. Facilities and customer service are seeing the lowest current investments (4% and 3%), but they have the highest planning rates (84% and 83%).
Spending allocations for generative AI: In the UAE, 28% of generative AI budgets go toward public cloud infrastructure, with 14% earmarked for dedicated infrastructure. Another 19% is allocated to external AI platforms for managing model lifecycles, while 19% supports external service providers for development, deployment, and management. Internal teams, including data scientists and IT specialists, receive 12% of the budget.
Challenges to AI adoption: AI adoption faces several hurdles, including vague privacy and security regulations, a shortage of skilled talent, unpredictable costs, and challenges like limited GPU/server access and inefficient data architectures. Businesses also struggle with confusion around generative AI, a saturation of AI solutions, and difficulty in establishing a solid business case.
Cloud providers top generative AI partner list: As generative AI adoption ramps up, companies in the UAE are looking to cloud providers (69%) and IT consulting firms (36%) as their top partners. Enterprise application providers (29%) and GenAI model vendors (12%) follow, while business consulting partners (9%), digital infrastructure providers (8%), Gen-AI startups (3%), and semiconductor vendors (3%) round out the list.
