Is the Middle East ready for the transformative impact of AI?

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In recent months, numerous AI deals—including Microsoft ’s plan to invest $1.5 billion in G42 , Saudi Arabia’s Public Investment Fund (PIF) , and Andreessen Horowitz’s plans to set up a $40 billion fund to invest in AI—have been made in the UAE and Saudi Arabia as both countries strive to establish themselves as major AI players. 

Both have ambitious goals to diversify their economies away from energy revenues, with investment in digital transformation, particularly AI, a key part of the strategy. 

AI is poised to add $320 billion to the Middle East’s economy by 2030, transforming businesses across sectors and our everyday lives. But are we ready for this seismic shift? With the rapid pace of AI advancement, we must consider how individuals, societies, and businesses can prepare for a world profoundly reshaped by AI.

While the opportunities are endless, so are the challenges. 

AI offers immense potential for industrial transformation by enabling automation, providing data-driven insights, and facilitating personalization, says Dr. Alia Bahanshal د. عالية باحنشل , Founder of AI Consult. 

A report by PwC emphasizes the need for governments and businesses to nurture AI development to fully harness its potential, highlighting the importance of infrastructure and skilled labor.

 The UAE is expected to see the most significant relative impact, with AI potentially representing 14% of its GDP. Saudi Arabia is projected to gain the most in absolute terms, with an expected increase of $135.2 billion. 

However, fully realizing its benefits requires overcoming significant hurdles, such as ensuring data quality and acquiring the right talent. 

Muad Al Omari , CEO at Aization, says adopting AI presents challenges, such as data privacy concerns and substantial investments to establish the necessary infrastructure for collecting, storing, and making data accessible for AI models to analyze and generate actionable insights. 

A significant hurdle is the shortage of skilled professionals, as the demand for AI specialists far exceeds the available talent in the labor market. Additionally, the responsible use of AI is a critical issue. Many countries and governments have implemented regulations to ensure AI applications operate within legal frameworks, making unbiased and comprehensive decisions. 

In February, the UAE Minister of State of Artificial Intelligence, Digital Economy, and Remote Work Applications, Omar bin Sultan Al Olama, launched the Building Responsible Artificial Intelligence Forum (BRAIN) at the World Governments Summit 2024. He stated that over 97 million people are expected to work in AI, highlighting the importance of governments recognizing the potential of AI.

He said understanding AI’s capabilities is essential for bringing about fundamental changes, adapting to trends, and making the best use of technology to develop a digital economy.

HINDERING THE BROADER ADOPTION

To build an AI-enabled future, in addition to what was mentioned above, Bahanshal adds that organizations must prioritize data quality by implementing data cleaning and validation procedures, expand infrastructure by upgrading hardware and software systems, establish ethical frameworks by developing AI ethics guidelines and principles, foster collaboration between different departments and teams, demonstrate return on investment by evaluating the impact of AI implementations, and staying updated with regulatory changes to ensure compliance with evolving laws and standards.

Omari says the significant skills gap hinders the transformation of corporate data into strategic assets that enable evidence-based decision-making. Second, data organization, utilization, privacy, and security issues can obstruct AI initiatives. Third, the high costs associated with AI technology and infrastructure can be a barrier for some companies. Additionally, the rapid advancements in generative AI capabilities, as observed recently, present a challenge for organizations to stay updated. This necessitates investing in dedicated AI departments that can effectively grasp market trends and leverage the technology.

To overcome these challenges, organizations can implement several strategies. 

The first step is to assess the maturity of their AI framework, ensuring readiness and alignment with business strategy. This evaluation identifies gaps and provides actionable recommendations for enhancing data management, infrastructure, governance, and talent development. Equally important is developing internal expertise. Investing in continuous learning and training programs fosters AI literacy across all levels, empowering employees to embrace strategic innovation. Generative AI tools can streamline repetitive tasks, freeing staff to focus on creative solutions.

Partnering with AI specialists bridges the skills gap and ensures the successful implementation of projects that significantly impact operations and align with performance indicators. Effective leadership prioritizes solving critical business challenges over pursuing image-driven projects. Establishing robust data privacy and security procedures is essential for building trust and ensuring regulatory compliance. Comprehensive data use policies and robust governance frameworks are crucial for managing interactions with internal and external data sources.

Lastly, leveraging cloud-based AI services can reduce initial costs and enable efficient scaling of applications. Aligning cloud solutions with organizational workflows and budgets ensures a cost-effective implementation that supports long-term growth. 

ENVISIONING THE FUTURE 

AI-driven automation will reshape the workforce, necessitating a transition from task-based to cognitive and strategic roles, adds Bahanshal. 

Organizations must prioritize reskilling, upskilling, and cultivating a human-centric culture to adapt to this evolving landscape. A strategic approach to AI implementation, coupled with transparent communication, is crucial for mitigating workforce disruption and maximizing the benefits of AI augmentation.

Also, Omari believes that the future of work in the era of (AI- Augmentation) will be characterized by a greater emphasis on collaboration between humans and machines. Routine and repetitive tasks will increasingly be automated, allowing employees to focus on more complex, creative, and strategic activities. This shift will require a significant transformation in workforce skills and roles.

Organizations should take several crucial steps to prepare for AI transformation. First, enhancing and reskilling employees is essential. Linking job performance evaluations to AI integration and proficiency helps identify the most relevant training programs tailored to their needs, offering a high degree of customization. Second, job roles should be redesigned to incorporate AI capabilities, ensuring employees can leverage AI to boost productivity and innovation. 

Third, effective change management strategies should be implemented to support employees during the transition and address any resistance or concerns. Fourth, education systems should be modified to integrate AI applications from an early stage, teaching students about data interactions in daily life and how AI systems operate across various sectors. For universities, incorporating entrepreneurship and product development based on academic research can foster the creation of startups, boosting national income and AI industry adoption.

As AI continues to evolve, our choices today will shape our future. The future will not just be about adopting AI but about leveraging it to build a more innovative and inclusive society.

Check out some of the Fast Company Middle East's best-read stories:

• NEOM partners with Saudi Broadcasting Authority to boost local media industry
• Qatar sees 28% rise in international tourists in early 2024
• Saudi Arabia’s PIF secures $50 billion in agreements with top Chinese financial firms

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