{"id":98278,"date":"2024-11-26T00:00:00","date_gmt":"2024-11-26T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/uae\/businesses-report-improved-business-performance-citing-ai-adoption\/"},"modified":"2024-11-26T00:00:00","modified_gmt":"2024-11-26T00:00:00","slug":"businesses-report-improved-business-performance-citing-ai-adoption","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/uae\/2024\/11\/26\/businesses-report-improved-business-performance-citing-ai-adoption\/","title":{"rendered":"Businesses report improved business performance citing AI adoption"},"content":{"rendered":"

AI investments fuel business growth in Saudi Arabia and the UAE:<\/strong> Some 88% of organizations in Saudi Arabia and the UAE that invested in AI have seen improved business performance over the past two years, according to a recent International Data Corporation survey (pdf)<\/a>. Currently, 28% are already investing in AI, 50% plan to, and 21% have no plans to adopt the technology.<\/p>\n

Data literacy, skills, and modernization lead AI priorities: <\/strong>Some 62% of UAE-based businesses are focusing on data literacy and AI skills enablement, and on AI solution\/model security. AI-enabled tools\/apps are a priority for 54%, followed by data architecture, engineering and management and advanced analytics at the edge (42%). Around 33% are prioritizing AI-ready digital infrastructure and data centers.<\/p>\n

GenAI for corporate strategy is top of mind, while customer service lags behind: <\/strong>Corporate strategy is leading the way in generative AI investment in Saudi and the UAE, with 23% of organizations already investing and 41% planning to. Software development follows, with 11% currently investing and 59% planning. Facilities and customer service are seeing the lowest current investments (4% and 3%), but they have the highest planning rates (84% and 83%).<\/p>\n

Spending allocations for generative AI: <\/strong>In the UAE, 28% of generative AI budgets go toward public cloud infrastructure, with 14% earmarked for dedicated infrastructure. Another 19% is allocated to external AI platforms for managing model lifecycles, while 19% supports external service providers for development, deployment, and management. Internal teams, including data scientists and IT specialists, receive 12% of the budget.<\/p>\n

Challenges to AI adoption:<\/strong> AI adoption faces several hurdles, including vague privacy and security regulations, a shortage of skilled talent, unpredictable costs, and challenges like limited GPU\/server access and inefficient data architectures. Businesses also struggle with confusion around generative AI, a saturation of AI solutions, and difficulty in establishing a solid business case.<\/p>\n

Cloud providers top generative AI partner list: <\/strong>As generative AI adoption ramps up, companies in the UAE are looking to cloud providers (69%) and IT consulting firms (36%) as their top partners. Enterprise application providers (29%) and GenAI model vendors (12%) follow, while business consulting partners (9%), digital infrastructure providers (8%), Gen-AI startups (3%), and semiconductor vendors (3%) round out the list.<\/p>\n","protected":false},"excerpt":{"rendered":"

28% of generative AI budgets go toward public cloud infrastructure in the UAE<\/p>\n","protected":false},"author":1,"featured_media":98279,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1577],"tags":[610,1132,7,1341],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-98278","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-_newspack_tech","tag-artificial-intelligence","tag-digitization","tag-enterpriseam-uae","tag-tech","wpautop","entry"],"acf":{"mongo_id":"41af7262-f292-4d9c-ad05-39698d0af4ae","order":"8","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2024\/5\/231.jpg","photo_position":"above","homepage_title":"","full_issue_title":"Businesses report improved business performance citing AI adoption","related_issue":[98264],"teaser":"28% of generative AI budgets go toward public cloud infrastructure in the UAE","voice_url":"https:\/\/s3.us-east-1.amazonaws.com\/ent.news\/audio\/2024\/11\/.6c71527e-60a7-4295-ae5d-1e4661c30b51.mp3"},"yoast_head":"\nBusinesses report improved business performance citing AI adoption - 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