88% of UAE and Saudi Arabia organizations investing in AI report business boost 

Amazon Web Services in collaboration with International Data Corporation (IDC) today released a new whitepaper which reveals that early artificial intelligence (AI) adoption is already transforming private- and public-sector organizations in the UAE, however, there is a risk of creating a digital divide between those who embrace the technology and those who fall behind.

The whitepaper, which was commissioned by Amazon Web Services (AWS), surveyed 166 organizations in Saudi Arabia and the UAE, focusing on key industries including government, finance, hospitality, and retail. It found that while only 28% of organizations have already started experimenting with AI, 88% of those early adopters report improved business performance.

The Middle East is experiencing a rapid acceleration in AI adoption, with governments across the region recognizing the technology's potential to drive economic growth, social progress, and national competitiveness. For example, the UAE’s National AI Strategy 2031 sets out strategic objectives and a clear vision on how to become a world leader in AI by 2031. 

To maintain this accelerated AI adoption across the region, the whitepaper outlines several challenges which need to be overcome, including regulatory uncertainty, availability of skilled talent, and data-related challenges. The whitepaper found that 58% of UAE organizations expressed concerns about unclear privacy and security regulations, underscoring the need for a balanced regulatory approach that fosters both growth and responsible AI development. It emphasizes the importance of collaboration between government, technology providers and businesses to create a regulatory environment that fosters both growth and responsible AI practices.

The availability of skilled talent is also crucial for companies who want to quickly build and deploy new AI applications – 46% of UAE organizations cited a lack of digital skills and expertise as a barrier to AI adoption. Governments and organizations across the Middle East are also investing heavily in education and training programs to develop a robust AI workforce. 

Partnerships between educational institutions, technology companies, and businesses are proving essential for ensuring that the workforce is equipped with the necessary skills to thrive in the AI-driven economy. The Mohamed bin Zayed University of Artificial Intelligence (MBZUAI), for example – a graduate-level, research-based AI university – and various AI-focused programs offered by universities like Khalifa University and the University of Sharjah, are developing AI talent through specialized educational programs and training initiatives.  

Innovai, the UAE government's initiative to invest in AI startups and projects, is also providing funding and support for innovative AI solutions in various sectors. And the AI-savvy talent pool is likely to grow, with 62% of organizations planning to invest in data literacy and AI skills enablement in the next 12-18 months, the whitepaper states.

The whitepaper also found that the majority of respondents highlighted that it was critical to overcome data-related challenges to accelerate AI adoption. The top data-related challenges cited were data security, a shortage of skilled resources for data management, and inefficient data architecture. However, these challenges represent opportunities for proactive engagement and innovation from technology providers to develop a modern data architecture and strong data engineering capabilities. 

"This whitepaper underscores AI’s transformative potential in the UAE, aligning with the nation's 'We the UAE 2031' vision," said Yasser Hassan, Managing Director, MENAT, AWS. "Early adoption is key, with AI-invested UAE organizations already experiencing improved business performance. AWS is committed to supporting this journey by empowering organizations to embrace AI responsibly and securely, providing the needed infrastructure and expertise to navigate the AI landscape confidently and drive growth."

AWS is committed to supporting responsible AI development and deployment in the UAE and the Middle East. The company is actively collaborating with authorities and businesses, providing secure cloud and AI services that empower organizations to confidently adopt AI solutions. UAE organizations like Camb.ai and the Technology Innovation Institute (TII) are leveraging AWS's expertise and robust security capabilities for AI innovation. 

The full report ‘Unlocking the Full Potential of AI in the Middle East’ is available to download here: https://aws.amazon.com/local/middle_east/?nc1=h_ls