• | 11:00 am

AI and GenAI is driving productivity across the Middle East, claims report

61% of Middle Eastern executives expect over 10% productivity gains from AI and generative AI in 2024

AI and GenAI is driving productivity across the Middle East, claims report
[Source photo: Anvita Gupta/Fast Company Middle East]

While global leaders are still exploring AI’s potential, the Middle East is forging ahead. The region experiences a significant surge in AI adoption, driving efficiency, innovation, and economic growth.

A recent Boston Consulting Group (BCG) report unveils that 61% of Middle Eastern executives anticipate productivity gains of over 10% from AI and generative AI (GenAI) by 2024. This contrasts sharply with the global sentiment, with 66% expressing dissatisfaction or ambivalence.

This optimism translates into action, with 54% of Middle Eastern executives reporting that their AI/GenAI efforts have progressed beyond experimentation to encompass comprehensive, scaled initiatives.

This proactive approach is supported by a planned increase in technology investments across the region, with 71% of executives aiming to enhance tech spending in 2024. Specifically, AI and GenAI witness an even higher investment commitment, with 85% planning to allocate more resources to these technologies.

The Middle East excels in upskilling its workforce for GenAI, surpassing global averages. Yet, only 11% of executives report training over a quarter of their employees, suggesting room for improvement in preparing the workforce for the AI landscape.

Additionally, over 60% of executives express uncertainty about future AI regulations, with just 6% having trained more than 25% of their staff on GenAI tools. These areas require proactive attention.

The report identifies “winning” companies that acknowledge GenAI’s staying power and its potential for productivity and revenue growth. 

These companies demonstrate key characteristics: they are more inclined to invest over $50 million in AI and GenAI, making them 1.3 times more likely to realize cost savings and 1.5 times more likely to achieve over 10% cost reductions by 2024. 

Additionally, 21% of organizations heavily investing in AI have already trained more than a quarter of their workforce, reflecting a proactive approach to upskilling. However, despite its critical importance, the cost of use often receives less attention than it deserves, with only 19% of companies considering it the top concern when selecting AI and GenAI solutions, suggesting a need for greater focus in this area.

“The Middle East is making significant progress in the field of GenAI by developing essential AI capabilities,” says David Panhans, Managing Director and Senior Partner at Boston Consulting Group. “The region’s focus on leveraging data for AI and GenAI solutions to various business challenges, combined with a digital-first, data-driven mindset, sets the region apart in GenAI and enables substantial productivity gains and innovation.”

The Innovation By Design Summit is in Doha on April 24. Attendance at the summit is by invitation only. Delegates can register here to receive their exclusive invite.

More Top Stories: