UAE's ambitious AI blueprint: Pioneering a tech-driven future

As nations race to be at the forefront of the Artificial Intelligence (AI) revolution, the UAE stands tall, wielding AI as both a tool for progress and a symbol of its forward-thinking vision.

With the integration of AI across sectors, the UAE presents a blueprint for a prosperous and tech-driven future. However, the journey is more than just tech adoption; it's backed by data, government initiatives, and unwavering commitment.

The UAE's approach to AI has been methodical. The UAE Strategy for Artificial Intelligence 2031 demonstrates the leadership's commitment to incorporating AI into every facet of life. According to the strategy, the UAE aspires to be at the forefront of AI leadership by 2031, in sync with the objectives of the UAE Centennial 2071. This ambition aims to unlock novel economic, educational, and societal prospects for its residents, governmental bodies, and enterprises, potentially adding up to Dh335 billion in additional growth.

Positive impact

We are already witnessing a multitude of impacts garnered through the judicious use of AI across sectors in the UAE. Leveraging strategic integrations in ICT, including AI-based systems, IoT and data platforms, blockchain technologies, digital identity and payment solutions, and unified back-office operations, Smart Dubai has adopted a comprehensive approach to rolling out shared ICT services and infrastructures. According to their report, Smart Dubai has pioneered the deployment and delivery of over 60 shared ICT services, with more than 50 entities reaping their benefits. Impressively, today, over 90 per cent of all Dubai government personnel and nearly 96 per cent of the governmental budgets are streamlined under a singular shared framework.

Similarly, with the UAE Central Bank's data, AI adoption in the financial sector has seen a surge. This is being powered by a confluence of factors: a burgeoning youthful demographic, accelerated digital transformation, and a conducive regulatory backdrop. The UAE, a trailblazer in this transformation, recorded an annual uptick of 9 per cent in digital payment transactions from 2014 to 2019. As we look to 2030, the forecast suggests a robust annual double-digit growth in financial transactions, underscoring the imperative for sophisticated tools ranging from fraud detection to advanced credit decision-making systems. Leading players in the region are already capitalising on AI, delving into predictive analytics for customer credit card behaviour, minimising unwarranted card declines, and harnessing machine learning for fraud detection.

The road ahead

While the impact of AI on the UAE's economic and operational landscape is evident, challenges and concerns persist, primarily surrounding the workforce. While AI promises efficiency and growth, there's an undercurrent of apprehension about job displacement. However, studies and experts suggest a different narrative. The World Economic Forum projects that by 2025, AI will create 133 million new roles globally while displacing 75 million, resulting in a net gain.

As per a PR Newswire analysis, the worldwide AI market is poised to expand from $21.46 billion in 2018 to a remarkable $190 billion by 2025. Concurrently, a study by PwC anticipates that by 2030, AI's contribution could encompass as much as 14 per cent of global GDP, translating to a staggering annual value of $15.7 trillion. Visionaries anticipate the emergence of Artificial General Intelligence - machines with human-like cognitive abilities - possibly between 2040 and 2070. While the fruition of such predictions remains in the realm of the future, one thing is clear: AI's trajectory is set to soar for the foreseeable future, creating new AI-centric industries and a plethora of innovative products and services.

In the UAE, the country's narrative with AI will continue to evolve, backed by robust data, initiatives, and a vision that looks beyond mere adoption. While challenges persist, the nation's dedication to striking the right balance between technology and human capital suggests a promising and innovative future.