Amazon Web Services (AWS), in partnership with the International Data Corporation (IDC), has released a new report detailing the state of artificial intelligence (AI) adoption in the UAE. The whitepaper reveals that although AI is still in its early stages, organisations adopting it are already experiencing significant benefits, with 88 percent of early adopters reporting improved business performance. However, the report warns of a potential digital divide, as organisations slow to adopt AI risk being left behind.
The survey, conducted with 166 organisations across the UAE and Saudi Arabia, highlights that only 28 percent of respondents have started using AI. Key sectors represented include government, finance, hospitality, and retail. The findings suggest that AI is seen as a driver of economic and social progress in the UAE, aligning with the country’s National AI Strategy 2031, which aims to make the UAE a global leader in AI by that year.
However, several challenges are impeding wider AI adoption. Regulatory uncertainty is a major concern, with 58 percent of UAE organisations citing unclear privacy and security regulations as barriers. The report calls for a balanced regulatory approach to encourage responsible AI development.
A lack of digital skills is also affecting progress, with 46 percent of organisations pointing to a shortage of expertise as a barrier. Educational initiatives, such as the Mohamed bin Zayed University of Artificial Intelligence (MBZUAI) and AI-focused programmes at Khalifa University, are working to address this skills gap. Additionally, 62 percent of organisations plan to invest in data literacy and AI skills training over the next year to meet future demands.
Data management challenges were also highlighted, with issues such as data security and inefficient data architecture posing obstacles to AI implementation. AWS and other technology providers are encouraged to support the development of secure, scalable data infrastructure to meet these needs.
“This whitepaper underscores AI’s transformative potential in the UAE, aligning with the nation’s ‘We the UAE 2031’ vision,” said Yasser Hassan, Managing Director for the Middle East, North Africa, and Turkey at AWS. “Early adoption is key, with AI-invested UAE organisations already experiencing improved business performance. AWS is committed to supporting this journey by empowering organisations to embrace AI responsibly and securely, providing the needed infrastructure and expertise to navigate the AI landscape confidently and drive growth.”
AWS is actively collaborating with UAE authorities and businesses, providing cloud and AI services to facilitate responsible adoption. Notable UAE organisations like Camb.ai and the Technology Innovation Institute are using AWS’s infrastructure to advance AI-driven projects securely.
The whitepaper underscores the UAE’s commitment to AI as a cornerstone of its economic future, while also emphasising the need for regulatory clarity, skilled talent, and robust data management to ensure continued growth and innovation.
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