New research from Dell Technologies indicates that artificial intelligence is now firmly embedded in business strategy across the UAE, with the majority of organisations reporting measurable returns from early AI investments.
According to the State of Innovation and AI Survey, conducted by independent research firm Vanson Bourne on behalf of Dell Technologies, 92 percent of surveyed UAE enterprises view AI and generative AI as a key part of their business strategy. The study, which surveyed 2,850 business and IT decision-makers globally, including 50 in the UAE, also found that 88 percent of local organisations are already seeing tangible productivity gains and financial returns from AI initiatives.
The findings point to a growing focus on foundational readiness. Data readiness for AI has emerged as a leading priority, with 64 percent of UAE organisations identifying it as a top IT initiative. This reflects increasing recognition that AI outcomes are closely tied to the quality, availability, and governance of enterprise data.
Walid Yehia, Managing Director, South Gulf at Dell Technologies, said: “The State of Innovation and AI Survey reflects a powerful shift in how UAE businesses are embracing AI to drive innovation and growth. Organisations are moving beyond piloting AI and are instead beginning to embed it at the core of their strategies. This transition underscores the transformative potential of AI, but achieving its full impact will require addressing critical challenges, from workforce upskilling to secure and collaborative implementation.”
The research also revealed that deployment models are also evolving with 74 percent of UAE businesses plan to consume AI through software running locally on AI PCs over the next 12 months. This signals a shift towards on-premises AI to address data sovereignty, compliance, and control requirements.
Sustainability has become another key driver of AI adoption. The study found that 92 percent of UAE organisations recognise AI as a critical tool for optimising resource use and improving sustainability, including through smarter data centre management, improved energy efficiency, and more circular IT practices. Collaboration is playing an increasing role in this effort, with 82 percent of organisations highlighting the importance of working with third parties to support sustainable IT initiatives.
Despite the positive momentum, the research highlights persistent challenges in scaling AI across the enterprise. Seventy-eight percent of UAE businesses report difficulty fully integrating AI into all areas of operations, while 30 percent remain in the early to mid-stages of their AI journey. Skills shortages stand out as the most pressing barrier, with all surveyed UAE organisations stating that they lack the skills required to fully leverage AI. Concerns are particularly acute around generative AI, where 66 percent report insufficient knowledge to deploy it safely.
Security and infrastructure readiness also remain significant hurdles. Seventy-two percent of organisations expressed concern about exposing sensitive corporate data and intellectual property to third-party AI tools, up from 64 percent last year, while 80 percent cited the challenge of balancing innovation with cybersecurity risk. Many organisations also reported limitations in their existing IT environments, including constraints around processing power, AI-optimised hardware, and data security.
The research was conducted in June 2025 and forms part of Dell Technologies’ annual Innovation Catalyst study, examining how organisations worldwide are adopting AI and emerging technologies to drive business outcomes.
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