Accelerating AI Adoption in Saudi Arabia BCG Survey Reveals Strong Consumer and Employee Support

Saudi Arabia demonstrates significant potential in the realm of Generative AI (GenAI), aligning with global trends that recognize AI’s crucial role in enhancing daily life. According to recent research by the Boston Consulting Group (BCG) titled “Consumers Know More About AI than Business Leaders Think”, there is substantial awareness and enthusiasm for AI among Saudi consumers, though adoption rates indicate room for growth.

The research is based on a survey conducted by BCG’s Center for Customer Insight. The survey measured awareness, usage, and sentiment towards AI and GenAI among 21,000 respondents from 21 countries across six continents. It also examined AI’s role and reception in workplace environments.

“Perceptions and usage of AI vary across different markets, age groups, and levels of exposure. However, it’s worth noting that consumers in Saudi Arabia exhibit a solid appreciation for AI, surpassing that of many other regions,” commented Dr. Akram Awad, Managing Partner & Director at BCG. “This progressive attitude towards technology in the region is quite promising. While there is high enthusiasm and engagement with GenAI, actual adoption rates in Saudi Arabia are below the global average. This highlights the need to accelerate AI adoption to bridge the gap between excitement and practical application.”

Global and Saudi-Specific Insights on AI Adoption and Sentiment

Globally, over 80% of survey participants are aware of GenAI, with a quarter actively using it. Notably, younger individuals under 35 show higher engagement, with 86% awareness and 32% usage compared to 80% awareness and 20% usage among those over 35.

In Saudi Arabia, engagement with GenAI is notable, with 83% of consumers knowing GenAI and 18% actively using these technologies. However, despite the high levels of awareness and excitement, the actual usage of AI in Saudi Arabia is below the global average of 25%, with Saudi adoption at 18%. This indicates a gap between enthusiasm for AI and its practical application, underscoring the need for accelerated adoption efforts.

AI is transitioning from the hype phase to mainstream integration, with far-reaching implications. Governments like the Kingdom of Saudi Arabia (KSA) are proactively addressing this gap through initiatives such as “GenAI for All,” which promotes research, development, and policy governance for AI. These efforts aim to increase AI ethics awareness and support capacity building, making AI a central topic across industries. 

Enthusiasm for AI in the Workplace

In Saudi, 69% of employees are excited about GenAI’s potential to enhance their work environment, with only 14% expressing concerns. This reflects a dynamic workforce that sees AI as a tool for innovation and efficiency. Leading to a net sentiment of 55% in favor of AI.

AI applications are quickly gaining traction due to their rapid adoption rates. Saudi Arabia is well-prepared to integrate AI across various business levels. Leaders should prioritize people, process changes, and technology implementation to fully embrace AI’s potential, considering the cultural nuances of AI adoption.

“Digitally advanced regions, businesses are integrating GenAI into their operations, making clear and transparent guidelines to address the concerns it raises. The excitement around AI is driven by its potential to unlocking huge commercial and societal potential in sectors like healthcare and education. Tailoring AI strategies to reflect regional and company-wide contexts is essential for maximizing benefits and minimizing risks,” stated Robert Xu, Managing Partner & Director at BCG X.

Key Considerations for Leaders

BCG report highlights several recommendations for business leaders to leverage GenAI successfully:

• Prioritize transparency and balanced sales when developing new consumer applications.
• Pilot new ideas and products in AI-receptive markets, considering a tailored approach to privacy.
• Reassure customers during the rollout of new AI offerings before scaling up.
• Corporate AI applications are more mature and likely to be adopted faster than consumer applications.
• Adhere to the 10-20-70 rule: allocate 10% of efforts to building algorithms, 20% to deploying the tech stack, and 70% to change management and people-related processes.

This approach ensures that most efforts focus on managing the changes associated with implementing new systems rather than solely relying on data and technology.

Business leaders and governments must build trust by respecting consumers’ and employees’ concerns, wisely navigating the excitement-concern curve, and capitalizing on emerging market opportunities when developing and deploying AI-enabled solutions and transformations.