Tech companies and the public sector in the Middle East are placing huge bets on artificial intelligence (AI), banking on things ranging from face-scanning check-in at the airport and conversational gadgets to computerized health care and autonomous vehicles.

As they chase this future, the market for AI labor has been transformed. Rapid advances in AI have changed the types of skills employers demand –  organizations are seeking out those who can understand and build cutting-edge AI models. 

With nearly all tech companies and government-aided organizations having an AI project – demand for AI talent is at an all-time high, but supply is extremely limited.

TALENT SHORTAGE

Recently, Dell Technologies Innovation Catalyst Research highlighted the growing demand for AI talent across the UAE, with two-thirds (67%) of the UAE respondents grappling with a talent shortage capable of driving innovation in their industry.

“AI represents the most significant technological leap in decades. However, to drive success in this dynamic environment, organizations require appropriately skilled people who feel equipped to handle change effectively and continuously adapt to new advancements,” says Walid Yehia, Managing Director – UAE, Dell Technologies.

Meanwhile, many countries in the region, including the UAE, Qatar, and Saudi Arabia, are making significant investments in AI and aim to be one of the best AI hubs in the world.

“Saudi’s sovereign wealth fund is in talks with top Silicon Valley VCs to create a $40 billion fund to invest in AI startups; Qatar has announced $2.5 billion incentives to help grow AI, technology, and innovation efforts; and UAE has secured a $1.5 billion investment in its G42, a technology group focused on AI,” says Stefan Srnic, Principal, Public Sector Practice at Kearney Middle East & Africa.

“These investments accelerate the adoption of AI technologies and demand for AI talent,” adds Srnic.

Recently, Dubai approved the appointment of 22 chief AI officers (CAIOs) to key government departments to drive a high-tech vision for the future.

A similar shift can be witnessed in the private sector, says Yehia, where many companies actively define roles for CAIOs to drive innovation, bridge the gap between the technical and business aspects of AI, and communicate the “why” behind an AI strategy. 

Demand is spiraling so fast that some joke the region is fighting another war, an unseen war for AI talent. Employers in the region are trying to acquire as much of it as possible from the small cohort of people who can work on AI.

“Finding AI talent is challenging,” says Pinar Yucealp, Human Resources Director at IBM Middle East & Africa. “Our recent CEO Study shows that 42% of Middle East CEOs report difficulty filling key technology roles, highlighting the pressing need for skilled AI professionals.” 

An IBM Institute for Business Value study also found that four in five executives believe generative AI will fundamentally change employee roles and skills, further intensifying the competition for top talent.

“As companies increasingly integrate AI and machine learning into their operations, skills in interdisciplinary areas such as AI strategy, the ability to apply AI within specific business processes, communicate complex technical concepts to non-technical stakeholders, and ensure ethical considerations will now be highly valued,” adds Yehia.

ATTRACTING AND RETAINING TALENT

Attracting and retaining talent with the right AI skills can be challenging. To attract new AI engineers, tech companies offer classes to existing employees that teach “deep learning” and related techniques.

Yucealp says IBM is actively recruiting AI talent through various channels and investing in upskilling and reskilling programs. “Using AI models, IBM maps existing competencies to future requirements, creating tailored reskilling pathways. This approach enhances skills alignment, talent mobility, and retention while reducing turnover.”

Yucealp adds that IBM’s close partnerships with leading academic institutions and research organizations worldwide help it stay ahead in AI research and development. 

Companies covet expert AI researchers because they can increase an AI system’s efficiency. 

“IBM actively seeks out star researchers who can develop and understand cutting-edge AI models. This pursuit is important for maintaining our leadership in AI innovation and technological advancements,” says Yucealp.

Generative AI has changed the talent market. Now, vacancies for software developers in the UAE and Saudi Arabia mention skills related to generative AI.

“The AI labor market has transformed significantly over the past year, driven primarily by advancements in generative AI,” says Yucealp. “This rapid adoption of AI technologies has created a heightened demand for specialized skills.”

Generative AI has expanded the scope of applications, from automating routine tasks to fostering innovation and creativity. “This shift has led to the emergence of new roles such as AI ethicists and machine learning engineers,” adds Yucealp.

The expectations for AI engineers have evolved. They need more than just creating small models for analyzing customer emails. Nowadays, companies require them to determine the appropriate AI system, link it with company data, utilize AI tools effectively, and integrate them to create innovative solutions.

“Employers will look for job applicants with technical skills. Machine learning, data science and analytics, and big data technology applications are all highly relevant skills for the AI field,” says Srnic.

Experts say that in the region, at most 2000 people have the skills necessary to tackle serious AI research. Amid aggressive poaching, companies are now hiring the best and brightest from academia.

The separation between basic and applied research is getting increasingly blurred, says Alain Hasrouny, Principal, Public Sector Practice at Kearney Middle East & Africa. “Tech companies can attract academic researchers because of the sheer resources they can mobilize to enable the work of scientists on large datasets and computing powers. This produces extremely powerful large models that academia cannot provide now.”

“A recent paper in Science journal cites that 70% of AI PhDs from North American universities went to industry, compared to 21% in 2004,” he adds.

Hiring from other countries, especially from China, is another way companies are reducing the talent shortage. Top tech companies are doling out lavish tax-free salaries to AI specialists, but startups find it hard to compete.

Not surprisingly, many think the talent shortage won’t be alleviated for years.

DEVELOPING AI TALENT 

“To support AI talent growth, governments in the Middle East should develop local talent and attract talent from outside the region,” says Srnic.

The good news is that the local supply of AI talent is growing, although slowly.

Recently, Dr Sultan Al Jaber, Minister of Industry and Advanced Technology and chairman of the university’s board of trustees, told the graduating class of 2024 of Abu Dhabi’s Mohamed bin Zayed University of Artificial Intelligence (MBZUAI), the world’s first dedicated AI university, of the pivotal role they would play in the country’s development.

“You don’t just have a front-row seat to history; you will play a primary role in shaping it,” he said. 

Apart from MBZUAI, other countries in the region are accelerating their local provision of AI, data science, and computing programs, aiming to attract national and international students, faculty, and researchers. 

“In the UAE, significant efforts are underway to attract IT professionals, including those that work within the AI space. These talents can apply for the golden visa, allowing them to reside in the country for up to ten years, thereby supporting talent retention and sector growth,” says Srnic.

Last year, Sheikh Hamdan launched the Dubai Centre for Artificial Intelligence to train 1,000 employees of more than 30 government bodies to use generative AI.

People are becoming increasingly curious about AI, and this growing interest is reflected in Coursera’s enrollment data, which shows a 1,102% increase in registrations for generative AI courses over the past year in the UAE. 

According to Coursera’s Global Skills Report 2024, while AI course enrollments in the UAE are seeing rapid growth, there’s a need for upskilling employees in technology, which currently stands at a 42% proficiency rate.

“Given the job titles of primary interest to learners, there is a heightened requirement for technology skills compared to other countries. To meet the demands of local employers, we see that the expectation for technology assessments could be even higher,” said Nikolaz Foucaud, Coursera’s managing director in Europe, Middle East, and Africa, in a press statement.

According to LinkedIn data, Saudi Arabia’s AI talent pool is on an upward trajectory due to the increased migration of AI professionals into the country. The country has a positive net flow of AI talent, ranking 15th globally in AI talent attraction.

Experts say supporting the increasing demand for AI professionals and ensuring future pipeline readiness will require companies to engage with local universities through AI-related internships and investments in R&D. 

Yucealp says IBM collaborates closely with local governments, businesses, and educational institutions to foster regional growth through AI innovation. “This involves deploying AI solutions and building a robust ecosystem that supports continuous learning and development.”

Srnic suggests that companies could also collaborate with governments to provide incentives for attracting foreign professionals and developing tailored AI-related visa schemes.

“As competition intensifies, there’s a risk of cannibalizing the sector locally especially as most investments are government-backed. Hence, the need for strategic partnerships across all stakeholders is crucial,” he adds.