Dr. Abdullah bin Sharaf Al-Ghamdi, President of the Saudi Data and Artificial Intelligence Authority (SDAIA) has revealed ‘The State of AI in Saudi Arabia’ report, highlighting the Kingdom’s efforts and advancements in artificial intelligence (AI) over the past five years, from 2019 to 2023.
The report outlined seven key pillars: policies and regulations, investment, infrastructure, data, talent and human capabilities, research and innovation, and adoption.
In 2023 and 2024, SDAIA’s global recognitions thus far have included a first place ranking in the government strategy for AI by the Global AI Index, the WSIS Prize for the Estishraf platform and National Data Bank, an Excellence Certificate for the "Elevate" AI training program, and membership in the UN AI Advisory Body, promoting ethical and responsible AI use.
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Policies and Regulations
The Saudi Data and Artificial Intelligence Authority (SDAIA) has been at the forefront of the Kingdom’s AI and data-driven transformation, publishing 14 regulations and policies to guide the development and implementation of these technologies.
Investment
Government investment in emerging technologies, including AI, has seen exponential growth. From 2019 to 2023, the compound annual growth rate (CAGR) of government spending in this area reached 59%, reflecting the government's prioritization of AI as a key driver of economic diversification under Vision 2030.
Infrastructure
Saudi Arabia has established itself as the second-largest country in the Middle East in terms of colocation data centers, with 22 active centers and an additional 40 under development. This robust digital infrastructure supports the growing demand for cloud services, which saw a 30% increase in 2023 compared to the previous year.
The country has also established 245 data management offices within the public sector, further bolstering its digital transformation efforts. Additionally, Saudi Arabia attracted USD 1.7 billion in investments into its AI companies in 2023, reinforcing the nation's reputation as a hub for AI innovation. The Kingdom also boasts 10 supercomputers, with 8 ranked among the top 500 globally, providing cutting-edge computational power to drive AI advancements.
Data
The National Data Bank (NDB) has become a pivotal platform for integrating over 320 government systems, amassing more than 100TB of data from 60+ entities. This centralization of data is critical for leveraging AI and big data analytics to enhance government services. The NDB’s Open Data Platform hosts over 8,700 datasets from 249 government and private entities, promoting transparency and enabling researchers and businesses to develop innovative solutions based on real-time, accessible data.
Talents and Human Capabilities
The development of AI talent is a key focus in Saudi Arabia’s AI strategy. Around 75% of the Saudi population is knowledgeable about AI concepts, with 64% aware of AI use cases and applications. This widespread awareness is supported by the country’s educational institutions, where 86% of universities offer bachelor’s degree programs related to AI, and 42% have specialized AI-focused programs. From 2019 to 2023, more than 38,000 graduates have earned AI-related degrees, such as in computer science. The workforce is rapidly expanding its AI skills, with a 51% annualized growth rate in AI-skilled workers from 2018 to 2022. Innovation is also thriving, as evidenced by a 50% growth in AI patents during the same period. The Kingdom plans to produce 1 million AI-skilled trainees by 2030, a goal supported by SDAIA’s One Million Saudi Initiative launched in 2024 to amplify its technological workforce.
Research and Innovation
Saudi Arabia's research output in AI has been growing at an annualized rate of 45% from 2019 to 2023, underscoring the nation's commitment to becoming a leader in AI research and innovation.
Adoption and Future Predictions
AI adoption within Saudi Arabia’s government is accelerating, with 39% of government entities either using or experimenting with AI technologies. Among those adopting AI, 81% have reported significant improvements in service delivery, highlighting the transformative impact of AI in the public sector. Looking ahead, AI is projected to contribute 12% to Saudi Arabia's GDP by 2030. The country’s AI market is expected to grow at a CAGR of 29%, solidifying its position as a leading player in the global AI ecosystem.
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