Dubai, UAE – AI is making waves in the UAE, as a new report from ServiceNow and Oxford Economics reveals that the country’s businesses are ramping up AI investments.
A striking 77 percent of UAE firms have increased their AI budgets year on year, signaling a clear commitment from leadership. Notably, 71 percent of companies report full support from their C-suite to leverage AI for business transformation.
The AI Maturity Index, which surveyed UAE enterprises, shows that more than 80 percent have a well-defined, shared vision for AI within their organizations, with 60 percent appointing a dedicated AI leader.
However, despite these strong commitments, only 15 percent have reached a level of AI maturity where they are innovating or transforming their business models. The majority remain in the experimental or operational stages.
According to the report, key areas of focus for AI investment include data management (53 percent), performance management (44 percent), and resource utilization, such as labor and IT capacity (43 percent).
Interestingly, businesses are already seeing returns, with 65 percent reporting improvements in efficiency and productivity. Still, the full potential of AI is yet to be realized in the region.
The UAE’s aggressive AI strategy and swift investments point to rapid maturity ahead. With a solid foundation of AI leadership, increased budgets, and a clear strategic vision, companies in the UAE are well-positioned to drive innovation in the coming years.
The real power of AI lies in its careful deployment across diverse business functions, from sales to customer service, and the UAE is primed for this transformation.
As William O’Neill, Area VP at ServiceNow, notes, “AI’s true potential is in reshaping work across the enterprise.” The UAE’s forward-thinking approach positions it as a leader in AI adoption within the region, with clear growth expected in AI maturity in the near future, accelerating their efforts to remain competitive in the global digital economy.
