According to PwC, artificial intelligence (AI) is expected to contribute USD 15.7 trillion to the global economy by 2030, indicating its immense potential to drive growth across various industries.
For decades, the world has witnessed how digital transformation has impacted homes, enterprises, communities, and governments, revolutionizing industries and economies.
Digital transformation signifies how the world constantly changes at unprecedented speeds, altering how we live and interact.
As we navigate the leap from digital technologies to AI transformation, reflecting on our journey is essential to navigate the future our ancestors could only imagine before.
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A Technological Leap to Transform the World
Since the discovery of technology, humanity has envisioned a future dominated by the digital landscape. Our never-ending curiosity has prompted us to create machines that rival human intelligence, ultimately becoming the focus of today’s innovation.
The widespread adoption of digital technologies and the integration of intelligence characterizes the Fourth Industrial Revolution (4IR). This existing era continues to utilize the power of technology to redefine and reshape our lives and experiences.
With AI’s soft launch in 2019, AI vividly reshaped the digital world, enabling the production of sophisticated tools, enhancing efficiency, and improving decision-making strategies. The revolutionary emergence of AI marked the beginning of our transition into the intelligent era.
Digital transformation has revolutionized industries and enterprises by providing upgraded customer experiences and delivering streamlined operations in businesses and organizations. With information readily available at our fingertips, technology has broken down the barriers that separate people. In Qatar, initiatives under the National Vision 2030, such as advanced healthcare at Sidra Medicine, demonstrate how AI and big data analytics are enhancing patient care and operational efficiency.
Saudi Arabia’s Vision 2030 and the NEOM project represent ambitious efforts to create a tech-driven, sustainable city powered by AI, robotics, and renewable energy. Similarly, Dubai’s Smart Dubai initiative has revolutionized sectors like travel, where biometric Smart Gates at the airport have drastically reduced waiting times and enhanced traveler experience.
Oman and Bahrain have also embraced digitalization in governance. Oman’s Invest Easy platform simplifies business registration, while Bahrain’s Cloud-first Policy has moved 70% of its IT infrastructure to the cloud, improving service delivery and efficiency.
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However, digital adoption is no longer just an option or an advantage; it has become a standardized driving force for accelerating economic growth. By integrating AI into operations, industries will be revolutionized and user experiences will be elevated to new heights.
With every technological upgrade, operations become more intelligent and responsive to market demands. For example, Ericsson's automated 5G factory in Texas doubled output per employee while reducing energy and water consumption, showcasing the impact of intelligent technology on production efficiency.
Embracing AI transformation enables enterprises to stay relevant in the fast-paced digital world through automation, machine learning (ML), predictive maintenance, personalized solutions, quality control, and inventory optimization. Thus, enterprises are encouraged to develop innovative solutions to cater to people’s expectations and personalized demands for real-time experiences.
To facilitate global AI transformation, vast amounts of data should be harnessed. AI’s growth will accelerate as new business models and opportunities emerge in response to digital changes. For example, UnitedHealth has leveraged AI to process large healthcare datasets through its OptumIQ platform.
Furthermore, the World Economic Forum has predicted that an AI system matching human brain capabilities will be available by 2040.
This technological leap from the digital to AI era marks the beginning of our significant journey to singularity.
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The Risks of AI Transformation
While AI holds massive benefits, its integration also brings significant risks requiring thorough management. Concerns over its societal impact have prevailed since its emergence.
The vast amount of data utilized by AI to deliver relevant results has raised privacy concerns. With intelligence incorporated into machines, sensitive information may be exposed and misused.
Moreover, existing technologies may be exploited for AI’s malicious purposes and cyberattacks may elevate the risk of national security breaches.
Some advancements in AI have also been proven to exhibit bias, leading to discriminatory results in various fields, including recruitment. In some cases, the data used to train AI models are the reason for unjust outcomes.
As AI becomes more sophisticated, digital deception may be enabled, blurring the lines between real and artificial scenarios. Deepfake audio and video content also pose significant risks of misinformation and fraud.
Additionally, the advent of AI has threatened the human workforce across different sectors. With the rapid advancements of AI in efficient working performance, a growing concern for job loss persists.
Recently, regulatory frameworks have started to gain traction as organization attempt to streamline the effects of AI’s transformative power. Deployers and enterprises may face legal risks and compliance violations without proper governance.
Stronger regulations and streamlined strategies are needed to manage AI’s ethical and societal dangers. This strategic move will ensure the right use cases are implemented and policies are aligned with AI goals and visions.
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Global AI Advancements and Regulatory Frameworks
Global organizations and government bodies recognize the immense potential of AI transformation, prompting them to adopt the innovation to fast-track their growth.
Asia continues to be a fast-growing continent in AI development and adoption. For instance, the Chinese government has made AI a national priority to boost their economy as reflected in its goal to become the world’s major AI innovation center by 2030.
South Korea bolsters a similar priority through its National Strategy for AI, implemented by the country’s Ministry of Science and Information and Communications Technology.
Technology giant, Huawei, continues to accelerate the growth of its AI ecosystem by delivering AI capabilities across various sectors of the community. Huawei’s initiative, coined “All Intelligence”, aims to facilitate the widespread adoption of AI, making it available to individuals, households, and organizations.
In August 2024, the European Union’s (EU) AI Act came into effect, ensuring the compliance and safe use of AI applications in the EU. The act aims to protect EU citizens from any potential harm AI may deliver.
Finnish telecommunications company, Nokia, collaborated with tech conglomerate, NVIDIA, earlier this year to establish AI-ready radio access network (RAN) solutions.
In the Middle East, Saudi Arabia expressed its deep interest in accelerating AI adoption by investing in AI (amounting to USD 40 billion). This plan bolsters the Kingdom’s goal to accomplish its Vision 2030 projects.
In April this year, Microsoft invested USD 1.5 billion in Abu Dhabi-based AI company, G42. This collaboration is a testament to the UAE’s commitment to attracting AI investors into the country, highlighting their keen interest in being a global leader in the AI field.
In a recent study conducted by Astra Tech, AI is projected to contribute USD 100 billion to the UAE’s GDP by 2030, accentuating the significance of AI in advancing the country’s economic growth.
UAE telecommunications company, e&, and Nokia Bell Labs recently partnered to deliver AI-based use cases for industrial sectors, developing responsible AI solutions for sustainable enterprise and industrial automation applications.
Additionally, e& launched the world’s first AI-powered self-service store in 2023 in Dubai.
Another UAE-based telecommunication company, du, commercially rebranded from Emirates Integrated Telecommunications Company (EITC) deployed its Oracle Alloy, providing hyperscale cloud and sovereign AI services.
Meanwhile, Qatar’s Ooredoo Group recently announced its QAR 2 billion (USD 549.4 million) deal with QNB to advance data centers and AI infrastructures in the country.
Moreover, Kuwait started integrating AI-powered cameras to monitor driving violations, enhancing its smart city portfolio by leveraging the latest advancements in technology.
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Final Thoughts
International collaboration remains essential to promote a unified approach. By working together, new opportunities and innovations will be unlocked, ultimately driving fundamental change in industries, enterprises, and communities.
This new evolution in our digital journey will lay the groundwork for future advancements, catapulting lasting change. This strategic move is essential to thrive in the fast-paced modern landscape.
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