AI is anticipated to contribute US$15.7 trillion to the global economy by 2030 with generative AI funding reaching US$25.2 billion in 2023, according to the IMF.
There are challenges though: one of them is that AI will impact almost 40 percent of jobs globally. A study by the World Economic Forum reveals that AI could replace around 85 million jobs by 2025, while 97 million new jobs requiring advanced technical competencies and soft skills are expected to emerge.
Industry-Specific Applications of AI
From healthcare to finance and education, AI is leaving its mark in several meaningful ways.
AI in Healthcare
In 2022, AI began to advance scientific discovery. By 2023, however, more significant science-related AI applications emerged—such as AlphaDev, which makes algorithmic sorting more efficient, and GNoME, which facilitates the process of materials discovery. The year also saw the launch of several medical systems, including EVEscape, which enhances pandemic prediction, and AlphaMissence, which assists in AI-driven mutation classification. The standout model of 2023, GPT-4 Medprompt, reached an accuracy rate of 90.2 percent.
AI in Finance
KPMG’s recent global study on AI in finance found that the use of AI is rapidly expanding across corporate finance: 71 percent of companies surveyed are using AI within finance operations, while 41 percent of them use it to a moderate or significant extent. According to the WEF, the financial industry faces a transformative era defined by Agentic AI which can independently perceive, reason, act and learn without constant human guidance.
AI & Education
Integrating AI into education can streamline administrative tasks, giving teachers more time for meaningful student engagement, as reported by the WEF. AI in education has the potential to revolutionize the assessment and analytics landscape, and offer educators invaluable insights -from pinpointing learning trends to supporting the evaluation of non-standardized tests. It also presents an avenue through which students can improve digital literacy, critical thinking, problem-solving and creativity.
AI in Transport
AI-powered vehicle tracking systems provide real-time insights into a fleet’s location, status, and condition. GPS data, sensors, and predictive analytics, allow businesses to optimize route planning and monitor fuel efficiency. According to MIT Sloan, AI technologies are poised to solve many challenges faced in logistics including:
- Fragmented supply chains and the need to connect networks to optimize and drive better outcomes.
- Market volatility, particularly changes in pricing and disruptions in services.
- Safety concerns, including those related to COVID-19, driver safety, and digital fraud.
- The impact that trucking and freight have on climate change.
GCC in the thick of AI things
The GCC is heavily invested in the technology. The Saudi PIF and Google Cloud recently announced a strategic partnership to create a new global AI hub. The Kingdom also created the National Center for AI (NCAI) to drive the nation towards innovation in the field.
The UAE said last September that it hopes to expand its US$1 trillion partnership with the U.S. through AI-related investments.
Qatar has earmarked US$2.4 billion to enhance its AI capabilities, and attract global tech talent, with digital investments projected to reach US$5.7 billion by 2026 from US$1.65 billion in 2022.
The Central Bank of Bahrain (CBB) has directed financial institutions to use AI digital advisory tools on top of commonly used AI assistants.
In the past year, funding for AI companies by Middle Eastern sovereigns has increased fivefold, according to data from PitchBook. This includes UAE’s Mubadala with US$302 billion assets under management (AUMs), the Abu Dhabi Investment Authority with US$1 trillion, Qatar Investment Authority with US$475 billion, and Kuwait’s fund with US$800 billion in AUMs,
New Research by McKinsey showed GenAI could generate up to US$35 billion per year in economic value across the GCC, with nearly 75 percent of GCC organizations already using GenAI in at least one function, compared to 65 percent globally.
Ethics and AI
The rapid adoption of AI has created several global opportunities but it also raises profound ethical concerns.
Without ethical guardrails, AI risks generating algorithm biases, resulting in discrimination and threatening fundamental human rights and freedoms, while also creating vulnerabilities to privacy breaches and data attacks.
Stanford UniversityAI Index reveals a significant lack of standardization in responsible AI reporting.
Leading developers test their models against different responsible AI benchmarks, thus complicating efforts to systematically compare the risks and limitations of top AI models.
