Businesses in the UAE, underpinned by a spate of proactive government initiatives, are spearheading the Middle East region in the adoption of artificial intelligence (AI) in their operations, according to an IBM study.
The IBM Global AI Adoption Index 2023 revealed that most IT professionals in the emirates (65 per cent) have reported a remarkable acceleration in AI rollout over the past two years, reshaping the way businesses operate, driving efficiency, innovation, and competitiveness in the UAE market. The country has emerged as a frontrunner in the adoption of AI with a remarkable 42 per cent of companies having already actively deployed it in their business operations. This figure is particularly noteworthy as it reflects the proactive approach of UAE businesses in integrating AI into their core processes, setting a benchmark for AI implementation in the region.
On the growing AI adoption in personal and business lives in the region, IBM has released the regional findings of two significant studies: The 2023 Global AI Adoption Index by Morning Consult with insights from businesses in the UAE and the biennial consumer study focused on the Middle East and Africa by the IBM Institute for Business Value. These studies provide a comprehensive look into consumer behaviours and AI adoption trends by enterprises, highlighting the transformative impact of AI in retail and business operations.
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The IBM index, which is based on a survey of more than 8,500 information technology (IT) professionals, including those from the UAE, highlights the rapid adoption and integration of AI in various sectors. The trend is changing the way businesses operate and driving efficiency, innovation and competitiveness in the UAE market, the report noted.
Omar Sultan Al Olama, UAE’s Minister of State for Artificial Intelligence, Digital Economy, and Remote Work Applications, has said the government seeks international collaboration and partnerships with technology companies worldwide to ensure the realisation of positive returns and address the negatives of technology that may occur over time. Al Olama, addressing a session titled “Generative AI: Steam Engine of the Fourth Industrial Revolution” as part of the 54th World Economic Forum in Davos, emphasised the UAE’s commitment to creating an environment conducive to accelerating the adoption of generative artificial intelligence, recognising its potential to contribute to the UAE’s ambitious goals and the positive opportunities it holds for large, small, and medium-sized enterprises. He said the UAE possesses significant capabilities and resources by having over 200 nationalities, making it an ideal platform for developing global artificial intelligence applications in various fields such as healthcare and other sectors in need of development and improvement.
Al Olama said that the UAE has taken significant steps in the digital field by graduating over 400 participants from the AI programme in collaboration with Oxford University. The programme aims to train government officials and decision-makers in digital skills, ethics, digital foundations, and artificial intelligence to enhance awareness in government entities and society, ensuring the comprehensive adoption of digital technologies across various entities.
Bill Farrell, Managing Partner – IBM Consulting, MEA, said: “For UAE businesses, findings show that the integration of AI is not just a competitive edge but a necessity in today’s digital landscape. Similarly, consumer expectations are evolving, underscoring the urgent need for retailers in MEA to embrace AI technologies.”
The IBM study noted that investments in AI are also seeing a strategic focus, with research and development, along with workforce upskilling, being identified as the top investment priorities.
The study further highlights that 34 per cent of UAE companies have a comprehensive AI strategy in place, while an additional 30 per cent are in the process of developing one. The main drivers propelling AI adoption in the UAE include advances in AI technology, the increasing integration of AI in standard business applications, and the pressing need to reduce costs and automate key processes, collectively contributing to the growing reliance on AI as a critical tool for business efficiency and innovation.
The study highlighted a widening gap between shopper demands and the current retail offering. Only 3 per cent of MEA consumers are satisfied with the in-store experience, despite the majority of consumers globally (73 per cent) having a preference for physical stores. At 10 points higher than the global figure, 75 per cent of MEA consumers are supplementing their in-store experience by using mobile applications while shopping demonstrating a trend towards a digitally integrated in-store experience. In terms of AI, 9 out of 10 MEA consumers who haven’t used AI for shopping are interested in its potential to enhance their shopping journey. Meanwhile, 75 per cent of MEA respondents are eager for AI applications, and 67 per cent for AI enhancements like virtual assistants.