Deloitte Research Reveals Over 65% Of Middle East Organisations Plan To Boost AI Investments Amid Challenges

A recent study by Deloitte, in partnership with Mohamed bin Zayed University of Artificial Intelligence (MBZUAI), highlights the vast potential of artificial intelligence (AI) in the Middle East. The 2025 State of AI in the Middle East Report also outlines challenges organisations face when investing in AI and ensuring its effective use. Insights were gathered from over 150 business and technology leaders across the UAE, Saudi Arabia, and Qatar.

Despite increasing AI investments, many organisations lack essential elements to fully leverage its value. Over 80% feel pressured to adopt AI, yet nearly half report insufficient talent and technology capabilities for successful scaling. Nonetheless, 69% plan to boost AI investment next year. Mutasem Dajani, Deloitte Middle East CEO, noted substantial AI investments driven by strong government commitments.

The report delves into AI adoption dynamics, identifying obstacles hindering progress and strategies for managing risks and maximising value. Organisations are urged to rethink operations as they transition towards knowledge-based economies. Respondents reported high preparedness levels for technology infrastructure (71%), talent (68%), and strategy (69%). However, risk and governance readiness was slightly lower at 63%.

Professor Sami Haddadin from MBZUAI emphasised the need for local AI specialists who understand implementation while addressing privacy and ethics concerns. He stated: "This research highlights an increased focus on developing local AI specialists and practitioners who understand the potential of AI and how to execute implementation, while addressing concerns such as privacy and ethics."

Generative AI (GenAI) presents both opportunities and challenges. While 91% of respondents expect increased productivity as a key benefit, only 41% feel prepared to address GenAI-related risks. One-third of Middle Eastern organisations allocate over 60% of their AI budget to GenAI, compared to global figures where 72% spend less than 40%. Yet, 41% view AI as a threat to current operating models.

Selecting suitable technologies is a major challenge for organisations developing AI tools, with 34% highlighting this issue. The complexity of available solutions makes it difficult for leaders to align applications with organisational goals. Identifying beneficial use cases remains challenging as businesses explore how GenAI can enhance operations.

Enhancing Decision-Making Skills

Deloitte's Yousef Barkawie stressed the importance of analytical approaches in assessing demand, supply, and enablement of AI: "There is a myriad of ways AI can supercharge efficiency and productivity while also paving the way for entirely new products, citizen services, and business models." He added that elevating boardroom decision-making skills is crucial to navigating disruptions effectively.

MBZUAI plays a pivotal role in overcoming hurdles through initiatives like the MBZUAI Executive Programme (MEP) and Master in Applied AI. These programmes empower leaders to manage risks associated with AI adoption while maximising value. Growing the AI supply ecosystem involves upskilling professionals and fostering research collaborations across sectors like energy and sustainability.

The report underscores a disconnect between organisations' eagerness to deploy AI and their readiness regarding talent, strategic planning, and infrastructure. Addressing these gaps is vital for realising AI's full potential in transforming business models across the region.

With inputs from WAM