One in four companies in the region is planning to allocate over $25 million to AI development in 2025, according to research from Boston Consulting Group.
By Maggie Mancini
AI remains a top priority for business leaders worldwide in 2025, with a strong focus on achieving tangible results from these tech initiatives. According to Boston Consulting Group’s AI Radar global survey, one in four companies in the GCC is set to allocate over $25 million to AI this year. The GCC includes Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates.
Leading companies in the GCC are focussing their AI investments on two strategic priorities: reshaping core business functions and creating entirely new AI-powered business models. Reshaping involves transforming existing operations for greater efficiency while creating new business models enable offerings that weren’t possible before AI.
This strategic approach is reflected in the fact that 81% of GCC companies plan to increase tech investments in 2025, and 72% of GCC companies rank AI and GenAI as a top three strategic priority. At the country level, 88% of executives in Qatar, 72% in the UAE, and 69% in Saudi Arabia rank AI among their three strategic priorities, compared to a global average of 73%.
In the GCC, 66% of executives expect AI to boost productivity; however, they agree that more is needed to ensure that current workforce talent is ready to meet AI demands. Overall, just 7% of executives in the Middle East anticipate headcount reductions due to AI automation—even lower than the global average of 8%.
The GCC’s efforts also emphasise practical AI applications rather than limited experimentation. For successful AI implementation, the region’s organisations are increasingly adopting the “10-20-70 principle,” a proven framework for AI value creation. This means they dedicate 10% of their efforts to algorithms; 20% to data and technology; and 70% to people, processes, and cultural transformation. This strategic balance recognises that technology alone isn’t enough—organisational and cultural changes are essential for AI success. This commitment is evident in the UAE, where 27% of organisations have already trained more than a quarter of their workforce on AI tools.
While the UAE is currently leading in AI workforce development in the region, this comprehensive training approach represents a model that other GCC countries are working to adopt, recognising that employee upskilling is critical for maximising AI’s potential.
While the GCC leads in AI adoption, regional executives are also aware of the risks of scaling AI. Data privacy and security, lack of control over AI decision-making processes, and regulatory challenges are top concerns for regional executives. Addressing these concerns is crucial to ensuring AI’s practical and ethical adoption.
