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UAE tech leaders anticipate stronger demand for AI and cloud capabilities over next 12 months

96% of the tech leaders in the UAE plan to invest in XaaS technologies

The UAE is emerging as a trailblazer in AI adoption, with leaders implementing AI and data analytics and a vast majority (96 per cent) planning to enhance cloud capabilities in the next 12 months, a report shows.

KPMG’s latest ‘UAE Tech Report 2024: AI, Data, and Sustainability in Focus’, shows that the country’s robust digitalization and tech adoption strategy is paving the way for a resilient digital economy. Nearly half (41 per cent) of survey respondents expect to leverage AI to enhance operational efficiency, and 27 per cent believe AI will assist in automating the customer experience over the next two years.

The UAE also displayed a higher adoption of edge computing (99 per cent) compared to the global average (97 per cent), reflecting their focus on enhancing real-time data processing and reducing latency – both crucial to support a digital economy. Both global and UAE tech leaders were aligned on AI’s role in filling skill gaps and enhancing productivity, although UAE leaders are slightly less confident about AI’s impact on innovation compared to their global counterparts.

Mohamad Majid, Partner, Digital and Innovation at KPMG Lower Gulf, said: “The UAE’s strategic investments in technology are setting new standards in innovation, especially when integrating AI and cloud computing. This has created a dynamic environment to support the rapid evolution of technology innovation across organizations. As the UAE positions itself as a global technology hub, this integration of cutting-edge solutions will be essential to maintaining competitiveness and fostering economic growth.”

Even as UAE leaders were more confident of AI driving financial and operational metrics compared to their global peers, there was a gap in environmental and community impact metrics, highlighting potential areas for growth. On the brighter side, a vast majority (96 per cent) said they were planning to invest in XaaS technologies, and 40 per cent were ready to prioritize data security, with 37 per cent focusing on data accessibility and democratization over the next 12 months.

The widespread adoption of cybersecurity measures by tech leaders in the UAE (100 per cent) and globally (99 per cent) underpins their commitment to safeguarding digital assets and maintaining a robust security posture amid evolving threats. However, the research showed that it was more challenging for UAE tech leaders to secure executive buy-in and investment approval. Consequently, significantly fewer UAE tech leaders (3 per cent) are in the early strategic design phase compared to the global average (11 per cent), suggesting scope for advanced stages of AI implementation in the UAE.

Over the next decade, 82 per cent of tech leaders globally foresee AI transforming knowledge creation and sharing. In the UAE, this expectation is slightly lower at 73 per cent; however, 67 per cent are satisfied with the amount of value generated through tech investments. When it comes to job restructuring, 81 per cent of leaders in the UAE and worldwide believe AI will automate routine tasks, with 77 per cent in the UAE foreseeing a shift toward more strategic and creative roles.