62 percent of Businesses in GCC Are Using AI
According to a recent report by McKinsey on the state of AI, over 60% (62%) of businesses in Gulf countries are utilizing the power of artificial intelligence (AI) in at least one aspect of their operations. Among the respondents, AI adoption is highest in the retail/consumer packaged goods industry, with 75% adopting.
McKinsey's research further highlights that AI has the potential to generate substantial value in the GCC, reaching up to $150 billion. This amount represents approximately 9% or more of the combined GDP of the GCC nations. The rapid development of AI technologies like generative AI, could propel the GCC to surpass this figure soon.
Different sectors have different perks and challenges impacting the speed and extent of AI adoption.
The energy and materials industry players shows fast adoption driven by international competitiveness, and early investments.
Retail companies leverage extensive data for consumer insights to accelerate AI deployment.
However, the Middle East construction industry faces hurdles in data collection and integration, especially among smaller firms lacking IoT technologies.
Financial services encounter obstacles due to perceived high costs of AI investment and regulatory limitations on data storage and risk frameworks.
Research also suggests "companies that are now deploying AI have barely scratched the surface of what it can deliver." Limited use of advanced analytics and AI models exists, particularly in the energy and materials sectors.
AI adoption remains low across business functions, with marketing and sales leading but only one-third utilizing AI. Untapped value persists across other areas.