• Home
• /
• Tech
• /
• Business

Mena AI market expected to grow at a CAGR of 44.8%

Tech Mahindra seeks to cash in on growing trend

The Middle East and Nort Africa (Mena) artificial intelligence market size was estimated at $11.92 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 44.8 per cent from 2024 to 2030, studies show.

“We anticipate a 30 per cent increase in the uptake of AI projects across the UAE and Middle East markets,” Ram Ramachandran, Senior Vice President, India, Middle East and Africa business, Tech Mahindra, said.

In alignment with this growth, Tech Mahindra recently launched a Cloud Centre of Excellence in the region, strategically designed to focus on AI and data advancements. This move positions us as a market leader in the AI and data space.

“We are engaging with customers to explore AmplifAI — our suite of AI offerings aimed at democratizing and scaling responsible AI deployment. Through AmplifAI, Tech Mahindra seeks to empower enterprises to amplify human potential and solve complex challenges, thus future-proofing their business operations,” Ramachandran said.

AI adoption in the Middle East is at an all-time high, with the region traditionally being a strong receptor of innovation and emerging technologies. “CXOs of large enterprises are exploring AI across various business initiatives, from enhancing customer experience through AI-driven chatbot interactions and omnichannel communication, to integrating AI into back-end processes for improved operational efficiency and scaling up supply chains. The interest and momentum in AI adoption are evident across multiple sectors,” Ramachandran said.

However, despite the potential benefits, the adoption of AI in the region is not without its challenges, Ramachandran said. “One major concern is job displacement. According to industry reports, up to 45 per cent of existing jobs in the region could be automated by 2030. While this presents a challenge, it also offers a significant opportunity to reskill the workforce and prepare them for an AI-driven future,” he added.

Cultural implications, scepticism, and the lack of a comprehensive regulatory framework are additional challenges. “This is particularly true in regions with stringent data privacy laws, where building trust in AI and establishing ethical guidelines are crucial for responsible and transparent use. Although these hurdles exist, the economic impact of AI is undeniable, and opting out of the AI adoption race may not be a viable choice for businesses looking to stay competitive. From our perspective, many of our customers are still in the Proof of Concept (PoC) stage of their AI journey, hesitant to move into full-scale production. This is a natural progression for any transformative initiative. At Tech Mahindra, we address this challenge by providing effective change management and guiding our customers through every step of the AI implementation process, ensuring a smooth transition from POC to full-fledged AI adoption,” Ramachandran said. We recently launched

Tech Mahindra’s growth trajectory in the UAE and the wider Middle East has been significant, driven by the region’s rapid adoption of 5G, smart cities, and digital transformation initiatives.

“Over the last few years, our business in the Middle East has doubled in size, establishing operations in six Gulf Cooperation Council (GCC) countries. With over 3,000 employees across MEA, we serve more than 80 clients, spanning key industries such as telecom, banking, government, healthcare, travel, and logistics,” Ramachandran said.

In the UAE and the broader region, Tech Mahindra is focused on sectors undergoing rapid digital transformation, including public services, energy, utilities, and financial services. “By leveraging AI/ML, cloud technologies, process transformation, and 5G capabilities, we have helping clients enhance operational efficiency, reduce costs, and unlock new business models. Moreover, our oil and gas vertical have rich experience of serving the oil and gas industry for more than 15 years and we are working with 30+ clients in this vertical globally across upstream, midstream, downstream and oil field services,” he added.

The MENA region has already experienced significant digital disruption across key sectors such as finance, healthcare, and education, with the fourth industrial revolution introducing machine learning and big data analytics to reshape these industries. The digital revolution in the Middle East has resulted in a surge in the number of people having access to financial services. “Several research reports have shown that financial inclusion has increased, and that the maturity of digital products has enhanced. Leveraging advanced AI capabilities, we provide innovative solutions to Banking, Financial Services, and Insurance (BFSI), streamlining key processes such as customer onboarding, video-based KYC, wealth management, cognitive pre-processing, straight-through claims processing, and real-time stock market query displays,” Ramachandran said.