UAE, Dubai : Gen AI burst into the public consciousness in 2023, promising to revolutionize business operations.

The Middle East exhibits a distinct approach to AI and Gen AI adoption, differing notably from broader global trends. According to the Boston Consulting Group (BCG) survey, while 66% of global leaders report dissatisfaction or ambivalence regarding their AI and Gen AI progress, the scenario in the Middle East is different.

61% of executives anticipate over 10% productivity gains from AI and Gen AI in 54% of Middle Eastern Executives indicate that their AI/Gen AI capabilities are currently focused on practical
application, going beyond limited experimentation to encompass more comprehensive and scaled initiatives.

“The Middle East is making significant progress in the field of Gen AI by developing essential AI capabilities and recognizing the importance of data as a key asset for immediate and strategic value. The region’s focus on leveraging data for AI and Gen AI solutions to various business challenges, combined with a digital-first, data-driven mindset, sets the region apart
in Gen AI and enables substantial productivity gains and innovation.”

David Panhans,
Managing Director and Senior Partner at Boston Consulting Group.

Although a small percentage of companies are already reaping the rewards of AI and Gen AI, others are either playing catch up or standing on the sidelines. More than 60% of executives surveyed say their firms are still waiting to see how AI- specific regulations develop, and just 6% of companies have trained more than 25% of their people on Gen AI tools so far.

• According to the report, “winning” companies acknowledge Gen AI’s permanence and recognize its potential for both enhanced productivity and topline growth. It outlines several characteristics that set the winners apart from observers including: 
   
   Winners invest for productivity and top-line growth. Organizations that plan to invest more than $50 million in AI and Gen AI this year are 1.3 times more likely to see cost savings in 2024—and 1.5 times more likely to achieve more than 10% in cost savings. 
   
   Winners are systematically upskilling. Twenty-one percent of organizations spending upward of $50 million on AI and Gen AI this year have already trained more than a quarter of their people. 
   
   Winners are vigilant about Gen AI cost of use. Cost of use, which has serious long-term implications, is not commanding the attention it should. Only 19% of those surveyed consider cost the top concern when choosing an AI and Gen AI solution. 
   
   Winners build intentional relationships. Only 3% of executives consider preexisting partnerships a priority when looking for AI solutions. 
   
   Winners implement responsible AI (RAI) principles. Of the companies surveyed that are investing more than $50 million in AI in 2024, 27% put the CEO in charge of their RAI strategy (versus 14% overall).