A recent survey by Google reveals significant AI adoption in the Gulf region, with companies leveraging AI to drive innovation and efficiency. According to McKinsey's research, 62% of respondents in Gulf Cooperation Council (GCC) countries report using AI in at least one business function, comparable to North America. The retail sector leads AI adoption, with 75% of respondents indicating its use, followed by financial services and energy and materials.
AI is being used to improve production, distribution, and maintenance in industries like energy and materials. AI-powered virtual assistants are being deployed to handle customer queries, with Dubai Electricity and Water Authority's virtual assistant responding to 6.8 million queries since 2017. AI is also driving innovation in sectors like construction and manufacturing, with potential applications in areas like predictive maintenance and quality control.
However, building AI talent is a significant challenge, with 37% of respondents citing organization and talent as a major concern. Developing high-quality data pipelines and modern technology stacks is essential for successful AI adoption. Regulatory hurdles, particularly in financial services, can slow AI adoption.
The economic impact of AI adoption is expected to be substantial, with estimates suggesting a potential contribution of $150 billion in GCC countries and $320 billion in the Middle East by 2030. AI adoption is expected to benefit various industries, including construction, energy, and financial services, with potential contributions ranging from 6.3% to 19% of GDP. As AI continues to transform the Gulf region, companies and governments are working to harness its potential while addressing the challenges that come with it.
