The United Arab Emirates (UAE) is at the forefront of adopting artificial intelligence (AI) in the Middle East, propelled by several government initiatives, as revealed in an IBM study. The IBM Global AI Adoption Index 2023 has highlighted that a significant 65% of IT professionals in the UAE reported a marked acceleration in AI implementation over the last two years. This rapid integration of AI is reshaping business operations in the UAE, enhancing efficiency, innovation, and competitiveness in the market.
The UAE stands out in the region with 42% of its companies actively deploying AI in their business operations, showcasing their proactive approach to embracing AI technologies. This figure sets a regional benchmark, emphasizing the UAE’s leadership in AI integration into core business processes.
IBM has also released regional findings from two critical studies: The 2023 Global AI Adoption Index, which focuses on businesses in the UAE, and the biennial consumer study by the IBM Institute for Business Value, concentrated on the Middle East and Africa. These studies provide insightful analyses of consumer behavior and enterprise AI adoption trends, particularly highlighting AI’s transformative impact in retail and business.
The IBM index, based on a survey of over 8,500 IT professionals including those from the UAE, underscores the swift integration of AI across various sectors. This trend is changing the dynamics of businesses in the UAE, driving innovation and competitiveness.
UAE’s Minister of State for Artificial Intelligence, Digital Economy, and Remote Work Applications, Omar Sultan Al Olama, emphasized the country’s commitment to fostering an environment conducive to the adoption of generative AI. He highlighted the UAE’s goal of international collaboration and partnerships with tech companies to harness the positive potential of technology while addressing any negatives that may arise over time.
Al Olama, speaking at the World Economic Forum in Davos, underscored the UAE’s significant strides in the digital realm, including training over 400 participants in AI in collaboration with Oxford University. This initiative aims to enhance digital skills and awareness among government officials and decision-makers.
Bill Farrell, Managing Partner of IBM Consulting in MEA, pointed out the necessity of AI integration for UAE businesses, noting the evolving consumer expectations and the need for retailers in MEA to adopt AI technologies.
Investments in AI in the UAE are also witnessing a strategic focus, particularly in research and development and workforce upskilling. Additionally, 34% of UAE companies already have a comprehensive AI strategy, with another 30% developing one. The drivers of AI adoption in the UAE include technological advancements, AI integration in standard business applications, and the imperative to reduce costs and automate processes.
The study also reveals a gap between shopper demands and current retail offerings, with only 3% of MEA consumers satisfied with the in-store experience. A significant trend toward a digitally integrated in-store experience is evident, as 75% of MEA consumers are keen on AI applications, and 67% are interested in AI enhancements like virtual assistants.
This research highlights the UAE’s position as a leader in AI adoption and innovation, reflecting its ambitious goals and the vast opportunities AI presents for businesses of all sizes.
