Amazon Web Services (AWS) in collaboration with International Data Corporation (IDC) today released a new whitepaper which reveals that early artificial intelligence (AI) adoption is already transforming private and public-sector organizations in Saudi Arabia, however, there is a risk of creating a digital divide between those who embrace the technology and those who fall behind.
The whitepaper, which was commissioned by AWS, surveyed 166 organizations in Saudi Arabia and the UAE, focusing on key industries including government, finance, hospitality, and retail. It found that while only 28% of organizations have already started experimenting with AI, 88% of those early adopters report improved business performance.
The Middle East is rapidly advancing AI adoption, with governments across the region recognizing the technology’s potential to drive economic growth, social progress, and national competitiveness. AI is a cornerstone of Saudi Vision 2030, while the Kingdom’s new US$100 billion government-backed AI group, Project Transcendence, is set to propel a new wave of public-private sector collaboration to power Saudi’s AI economy.
To maintain this accelerated AI adoption across the region, the report outlines several challenges which need to be overcome, including regulatory uncertainty, availability of skilled talent, and data-related challenges. The whitepaper found that 66% of Saudi organizations expressed concerns about unclear privacy and security regulations, underscoring the need for a balanced regulatory approach that fosters both growth and responsible AI development. It emphasizes the importance of collaboration between government, technology providers and businesses to create a regulatory environment that fosters both growth and responsible AI practices.
The availability of skilled talent is also crucial for companies who want to quickly build and deploy new AI applications – 51% of Saudi organizations cited a lack of digital skills and expertise as a barrier to AI adoption. Governments and organizations across the Middle East are also investing heavily in education and training programs to develop a robust AI workforce.
Partnerships between educational institutions, technology companies, and businesses are proving essential for ensuring that the workforce is equipped with the necessary skills to thrive in the AI-driven economy. Saudi Arabia’s embrace of AI is manifested in its National Strategy for Data and AI (NSDAI), positioning the Kingdom as a global AI leader, while the Saudi Data and AI Authority (SDAIA) governs AI development, exemplified by initiatives like the National Center for Artificial Intelligence (NCAI).
Additionally, significant investments including NEOM’s AI-driven city planning, the Global AI Summit, and partnerships with leading AI companies, in addition to SDAIA’s focus on building a robust AI talent pool through scholarships and training programs, is solidifying Saudi Arabia’s commitment to AI innovation and its integration across various sectors. And the AI-savvy talent pool is likely to grow, given 69% of Saudi organizations are planning to invest in data literacy and AI skills enablement in the next 12-18 months, the whitepaper states.
The whitepaper also found that most respondents highlighted that it was critical to overcome data-related challenges to accelerate AI adoption. The top data-related challenges cited were data security, a shortage of skilled resources for data management, and inefficient data architecture. However, these challenges represent opportunities for proactive engagement and innovation from technology providers to develop a modern data architecture and strong data engineering capabilities.
“This whitepaper underscores AI’s transformative potential in Saudi Arabia, aligning with the nation’s Vision 2030,” said Yasser Hassan, Managing Director, MENAT, AWS. “Early adoption is key, with AI-invested Saudi organizations already experiencing improved business performance. AWS is committed to supporting this journey by empowering organizations to embrace AI responsibly and securely, providing the needed infrastructure and expertise to navigate the AI landscape confidently and drive growth.”
AWS is committed to supporting responsible AI development and deployment in the Kingdom and the Middle East. The company is actively collaborating with authorities and businesses, providing secure cloud and AI services that empower organizations to confidently adopt AI solutions. Saudi organizations like Al Mosafer are leveraging AWS’s expertise and robust security capabilities for AI innovation.
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