Artificial intelligence (AI) remains a top priority for business leaders worldwide in 2025. According to the latest findings from Boston Consulting Group’s (BCG) AI Radar global survey, one in three companies globally plans to allocate over USD 25 million to AI this year, while in the GCC, one in four companies is set to make a similar level of investment.
The survey, featuring input from 1,803 C-level executives across 19 markets and 12 industries, highlights widespread optimism about AI’s potential, tempered by significant challenges in realizing its full value.
AI as a Tool for Productivity and Innovation
Leading companies in the GCC are focusing their AI investments on two strategic priorities: reshaping core business functions and creating entirely new AI-powered business models. This involves fundamentally transforming existing operations for greater efficiency while creating new AI-powered business models that enable offerings that weren't possible before AI.
This strategic approach is reinforced by the fact that 81% of GCC companies plan to increase their investments in technology in 2025 and 72% of GCC companies rank AI/generative AI (GenAI) as a top-three strategic priority. This approach begins with deploying AI for immediate productivity gains in everyday operations, then moves towards reshaping critical business functions to achieve substantial efficiency improvements, and ultimately focuses on developing entirely new AI-powered business models that create lasting competitive advantages.
At the country level, executives in Qatar (88%), the UAE (72%), and KSA (69%) rank AI/GenAI among their top three strategic priorities, compared to the global average of 73%.
In the GCC, 66% of executives expect AI to boost productivity; however, they agreed that more research and development (R&D) is needed to ensure that current workforce talent is ready to meet AI demands. Overall, this positive outlook on workforce retention in the GCC and the broader Middle East stands out as a key finding from the survey, with only 7% of executives in the Middle East anticipating headcount reductions due to AI automation—an even lower percentage than the global average of 8%.
The GCC's efforts also emphasize practical AI applications rather than limited experimentation. For successful AI implementation, the region's organizations are increasingly adopting the "10-20-70 principle" (a proven framework for AI value creation). Entities are dedicating 10% of their efforts to algorithms, 20% to data and technology, and 70% to people, processes, and cultural transformation. This strategic balance suggests that technology alone isn't enough; organizational and cultural changes are essential for AI success. This commitment is evident in the UAE, where 27% of organizations have already trained more than a quarter of their workforce on AI tools. While the UAE is currently leading in AI workforce development within the region, this comprehensive training approach represents a model that other GCC countries are working to adopt, recognizing that employee upskilling is critical for maximizing AI's potential.
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A Balanced Approach to AI Risks
While the GCC leads in AI adoption, regional executives are also keenly 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, aligning closely with global risk perceptions. Addressing these concerns is crucial to ensuring AI's practical and ethical adoption.
AI and GenAI Investments in the GCC
To maximize the return on their significant AI investments, forward-thinking GCC organizations are moving beyond technology acquisition to focus on strategic value creation. This evolution reflects a mature approach to digital transformation across the region.
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