Dubai, UAE – The GCC region could realize $9.9 of economic growth for every $1 invested in GenAI. At that rate, the overall economic impact of GenAI could reach $23.5 billion per year by 2030 within the region, Strategy& Middle East, part of the PwC network revealed in a study.
Saudi Arabia and the UAE are expected to experience the most substantial impact, with projected annual impacts of $12.2 billion and $5.3 billion, respectively. Qatar, Kuwait, Oman, and Bahrain will also benefit, with estimated economic gains of $2.6 billion, $1.6 billion, $1.3 billion, and $0.6 billion, respectively.
“These statistics underline the extraordinary potential of Generative AI to revolutionize the Middle East’s business landscape. Executives who seize this opportunity without delay can gain a substantial competitive advantage, while companies that merely watch risk falling behind,” said Tony Karam, Partner at Strategy& Middle East.
Examining the industries likely to witness the greatest transformation, the analysis by Strategy& Middle East identifies media and entertainment as the largest affected sector with $8.5 billion of likely economic impact across the GCC region. This is followed by the healthcare industry at $3.8 billion, banking and financial services at $3.5 billion, as well as IT and telecommunications at $2.9 billion.
According to Strategy& Middle East, GenAI possesses immense capabilities that go beyond being an advanced chatbot. Powered by large language models (LLMs), GenAI models are trained on extensive textual and multimodal data, enabling them to perform a wide range of linguistic tasks, including generation, editing, summarizing, translation, and classification.
This versatility allows LLMs to be fine-tuned for specific applications, providing organizations with a compelling advantage.
Google’s Med-PaLM2, a healthcare-centric model, showcases this potential by surpassing medical professionals in crafting comprehensive clinical evaluations. The broader impact of GenAI transcends industries, promising a seismic shift in business functions encompassing sales, marketing, customer service, and compliance.