Tuesday, 02 January 2024 12:17 GMT

Gulf Firms Face Widening AI Returns Gap Arabian Post


(MENAFN- The Arabian Post) clearfix">

Arabian Post Staff -Dubai

Gulf companies are pouring money into artificial intelligence, but many are finding that rapid adoption is not translating into measurable financial returns as weak data foundations, fragmented technology systems and governance gaps constrain deployment at scale.

Around 84% of organisations across the Gulf are using AI in some form, yet only about 11% have reached a level where scaled deployments are producing clearly measurable value. The gap is sharpening scrutiny of spending decisions as executives move beyond experimentation and demand evidence that AI can improve revenue, margins, productivity or customer outcomes.

The problem is becoming more pronounced as investment accelerates. Nearly four in five Gulf organisations have incorporated AI into their strategic plans, while 85% expect their AI budgets to increase during 2026. Almost 40% anticipate significant spending increases. Generative AI remains the leading priority, accounting for the main technology focus for about 35% of organisations surveyed across the region.

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The Arabian Post

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