The Saudi Data and Artificial Intelligence Authority (SDAIA) has released a report titled Generative Artificial Intelligence: Promising Prospects for a Better Future, highlighting the transformative potential and broad economic impact of generative AI.

The report emphasizes the rapid global momentum behind generative AI, technologies that can generate text, images, code, and simulations by learning from large datasets, delivering more creative and complex outputs than traditional AI.

Citing research by Deloitte, SDAIA notes that generative AI could reduce operational costs by 30% or more by automating routine tasks and improving productivity.

McKinsey’s survey of more than 1,300 companies reinforces these findings, reporting cost reductions of 10–37% in HR departments and profit increases of over 6% in supply chain operations.

Global investment in generative AI is also expected to rise sharply. According to projections from IDC, spending on the technology will reach $202 billion by 2028, making up 32% of the anticipated $632 billion total AI expenditure.

The report also examines regional trends, citing a 2024 McKinsey survey of 140 organizations across the public and private sectors in the Gulf.

It found that 75% of respondents had already implemented generative AI in at least one business function—most commonly in sales, marketing, and software engineering—underscoring its growing strategic importance.

Additionally, 57% of surveyed organizations allocate at least 5% of their digital budgets to generative AI, and half have developed detailed implementation roadmaps.

Looking ahead, the pace of global adoption continues to accelerate. SDAIA notes that by 2026, 80% of organizations worldwide are expected to deploy generative AI solutions.

By 2027, half of the world’s population is projected to use specialized AI models, and more than 100 million people are expected to interact with AI-powered digital assistants or robots in their daily lives.