Tuesday, 02 January 2024 12:17 GMT

GCC Business Leaders Bet On AI As The Foundation Of Their Next Big Leap


(MENAFN- Khaleej Times)

Across the GCC, artificial intelligence has moved from a topic of exploration to a core lever for operational transformation. While the early days of AI focused heavily on predictive models and siloed analytics, the current shift is toward integrated, real-time systems that not only guide but actively participate in business decision-making. From AI copilots to autonomous operations, the technology has evolved into a practical enabler of efficiency, resilience, and scale. This evolution is especially significant in the GCC, where bold national visions, world-class digital infrastructure, and public-private investments have created the proper environment for AI deployment

Today, operational leaders are asking a different question. No longer focused on whether to invest in AI, the emphasis is now on how to deploy it meaningfully and link that deployment to core performance metrics. In other words, AI has moved out of the innovation lab and into the operating model, where its value must show up in cost-to-serve, cycle times, and productivity gains. The ability to translate technology investments into operational value, lower costs, shorter cycle times, and increased productivity, has become the new benchmark for success.

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Historically, predictive analytics served as a valuable first step, allowing businesses to anticipate demand patterns, identify anomalies, and improve resource planning. However, these capabilities were often passive, providing insights without integrating them into operational execution. The current wave of AI technologies is closing that gap. Copilot-style tools and intelligent automation platforms are now embedded into core workflows, helping teams make faster, smarter decisions that drive real, quantifiable results. This shift matters because insight without execution no longer meets the expectations of GCC operators or regulators.

GCC employees are embracing AI faster than other global workforce, as the region ranks 2nd in the world for workplace adoption of AI tools according to BCG's annual AI at Work Global Survey. In sectors such as logistics, telecommunications, and government services, these tools are already demonstrating clear returns.

In the UAE, DP World has integrated AI-powered tracking and automated storage into its Jebel Ali Free Zone operations, improving throughput and reducing manual intervention. Emirates Airline is using AI to automate thousands of crew scheduling hours and improve on-time performance Under Vision 2030, Saudi Arabia is investing in fully automated logistics ecosystems as part of its NEOM project, aiming to build the world's first AI-led supply chain city. Qatar and Oman are also embedding AI into their free zone warehousing strategies to support smarter inventory forecasting and regional distribution. These are not experiments, they are early proof points that AI-driven operations can scale in GCC conditions and deliver predictable financial outcomes.

These initiatives underscore how GCC governments and private sector players are operationalizing AI in ways that are regionally relevant and globally competitive. Governments are also playing a critical role by introducing agile regulatory environments and investing in real-time service platforms. Public service agencies are increasingly using AI to manage high-volume interactions, automate routing of citizen queries, and reduce the administrative burden on human agents. These initiatives are not about replacing the workforce, but about enhancing it and ensuring that human capital is focused where it adds the most value, while AI handles volume and velocity. Put simply: AI is removing the wasted work, not the workforce. This is where EI marry the AI, our slogan in TP.

The financial benefits of this shift are substantial. McKinsey estimates that operational AI adoption can lead to cost reductions of up to 30 percent, while also enhancing service resilience and flexibility. From a CFO's perspective, the ability to lower the cost-to-serve ratio, improve working capital cycles, and reduce overhead without compromising service quality is highly compelling. Organizations that have embraced AI to optimize service flows are already seeing improvements in metrics such as revenue per employee, customer lifetime value, and employee retention. These are the metrics that determine whether AI is a cost or a catalyst, and the evidence increasingly points to the latter.

However, achieving these outcomes requires more than just deploying technology. It demands a shift in operational mindset and a commitment to reengineering core processes around intelligent decision-making. Organizations must embed AI into performance management systems, define clear key performance indicators, and continuously evaluate how automation contributes to business goals. At the same time, investments in people remain essential. The most successful initiatives balance automation with human capability, using AI to augment decision-making rather than automate it in isolation.

This partnership between human expertise and machine intelligence is particularly relevant in the GCC, where the workforce is increasingly digital-first, and customer expectations continue to rise. According to the World Economic Forum, skills such as analytical thinking, emotional intelligence, and adaptability are becoming central to success in AI-augmented environments. Companies that invest in upskilling and change management, alongside AI deployment, will be best positioned to sustain long-term transformation.

It is also important to scale with purpose. Isolated AI pilots may deliver localized improvements, but true transformation comes from end-to-end integration. This means identifying high-impact operational areas, such as procurement, supply chain, or customer experience, and embedding AI at every level, from decision support to autonomous execution. Doing so not only improves efficiency but also builds resilience in the operating model, making organizations more agile in the face of market disruption.

The GCC has the foundation, ambition, and infrastructure to lead in this space. With visionary leadership, strong investment momentum, and supportive public policy, the region can become a global example of how to use AI to transform operations responsibly and at scale. But ultimately, the winners will be the organizations that align AI with financial discipline, operational excellence, and a workforce empowered to use these tools every day. The future of operational excellence will not be defined solely by how much technology is deployed, but by how well it is embedded into the organization's DNA to create measurable, sustainable value.

The writer is GCC CFO, General Manager UAE – TP

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Khaleej Times

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