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SME Sector: The Powerhouse of Progress Backed by Agile Policies

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An in-depth analysis of the SME ecosystem in the UAE. The article also attempts to give insights into the comprehensive revival efforts and agile policies put in place by the national government to uplift SMEs from pandemic distress and financial constraints.

Small and medium enterprises (SMEs) are observed as the backbone of all economies across the world. Not only do they have the remarkable potential to lead innovation, create jobs, fuel economic growth, and expand the tax base but also can play a crucial role in social cohesion. However, their existence and survival were facing questions since the COVID-19 pandemic hit. Many of them had to hibernate their operations for an uncertain period due to the disconnection of resources and supply-chain networks, owing to lockdowns in the South Asian countries and Europe.

The United Arab Emirates (UAE), has always been a frontrunner in showing its remarkable potential to host micro, small, and medium-sized enterprises (MSME) in its economy. The “UAE National Agenda,” presented in 2014 leading to the UAE Vision 2021 had categorically explained about creating a “Competitive Knowledge Economy” and signaled the country’s interest to reduce petrochemical dependence.

According to the Ministry of Economy, “SMEs represent 87 percent of the companies in the UAE and constitute 86 percent of the private sector’s workforce.” The sector, combining manufacturing, service, and trade, contributes over 52 percent to UAE’s non-oil GDP.

The Crisis Phase and Revival Efforts

The Central Bank of the UAE (CBUAE) has been actively surveying, studying the MSME sector, and figuring out possible options to help each category of enterprise to recover from challenges and financial constraints. Such surveys are regularly conducted in developed economies and the UAE is seemingly upfront in these actions that potentially enhance opportunities in the business sector.

Reports of CBUAE, chambers of commerce in emirates, various other agencies accelerated the government efforts to protect the SME sector in the extremely turbulent year of 2020. The UAE government’s agility in terms of creating and revising policies was visible enough. Business support, economic stimulus packages, service fee reductions, and utility price reduction combinedly worked to rescue the vulnerable SME sector and the country stood above its counterparts in the GCC.

UAE Ministry of Economy’s Cabinet Resolution 2020 to slash the fees of government services include licensing, renewal, and trademark, Ministry of Human Resources and Emiratization’s financial and administration protection from, and Prime Minister’s “agile, flexible, and speedy government” policy are the notable ones.

Banks for Small and Medium Businesses

The CBUAE survey concluded stating, “The surveys show challenges for MSMEs related to the absence of audited accounts, lack of collateral, in tandem with limited use of the services of the Credit Bureau and credit export insurance, which inhibit companies’ access to finance, thereby revealing areas where reforms are expected to have the biggest impact on improving the UAE MSMEs ecosystem.” The finding of the survey had played a crucial role in the UAE government’s mission to rescue SMEs and instructing banks to start flexible lending and insurance schemes for small and medium-sized businesses.

Acting upon the government’s interest, most of the financial institutions in the UAE created tools that will mitigate their risk connected with SME lending. Leading banks in the country including Emirates NBD, FAB, Mashreq, and RAK, offer business accounts, flexible remittance, digital solutions, financing, and personal services to SMEs.

Insights into SME-specific schemes, policies, and loans in the UAE banks:

Emirates NBD’s SME-Specific Package:

The bank convenes Multaqa that helps SME owners and entrepreneurs hear from industry experts and networks. It had announced a customized business banking package in 2020 for UAE-based SMEs and startups that features preferential pricing and privileges on transactions, working capital, trade finance, FX, and commercial loans, cementing the bank’s commitment to supporting the future growth and development of companies registered to do business with Expo 2020 Dubai.

Mashreq Business Banking

Mashreq offers business account solutions to SMEs include 25-30 percent discounts on trade transaction fees, free online remittance for currency transfers, unlimited checkbooks, business debit cards, flexible deposits, and tailored services for selected businesses besides sophisticated digital banking services.

RAKstarter SME Account

For budding entrepreneurs and startups, RAK bank provides zero-balance business accounts. RAKstarter accounts are available in AED, US Dollars, Euro, and Pound Sterling (GBP) currencies. The bank also claimed to provide business financing and attractive foreign exchange rates. Businesses own accounts at RAK bank can also avail low-cost mobile POS machine at preferential pricing.

FAB’s SME Growth Loans

After the announcement of Abu Dhabi government on expanding the SME Credit Guarantee scheme to prioritize and increase SME’s access to financing in the Emirate, First Abu Dhabi Bank (FAB) started to provide easy financing options to SMEs, improving their ability to withstand market fluctuations.

SME Growth Loan benefits from FAB

  • Working capital facility for three months duration
  • Term loans of up to 4 years duration
  • Competitive interest rates
  • Easy documentation
  • Quick turnaround time

All qualified SMEs registered as LLC, FZEs, Sole Proprietorship, Partnerships & Branches of foreign companies, and operating in Abu Dhabi (onshore and offshore) in the categories of trading, manufacturing, and services are entitled to get the loan benefits.

Robust Technology Solutions for SMEs

SMEs need the support of cutting-edge technology in their business environment. The presence of sophisticated hardware and competent software not only make customer engagement highly productive but also save process cost. A well-thought-out plan should be made before procuring technology solutions of any kind.

The unprecedented pandemic hit led companies to start hybrid work, where a large percent of the workforce does their job remotely. Similarly, virtual interactions, even on business levels, have become a common practice. Hence, the IT solutions providers started tailoring their products based on the need of businesses. The integration of AI, cloud computing, cyber security, remote work solutions, and customer engagement tools is essential for SMEs to strive for success.

When it comes to procuring hardware solutions, SMEs should rely on robust and sturdy solutions to reduce down the situation and following business impact. The cost could be a major factor in the selection of hardware resources; however, reliability shouldn’t be questioned. Both open and closed sources have solid software programs to handle the entire enterprise activities. No matter what, adequate technical, installation, and training support should be demanded when it comes to choosing a vendor or system integrator.

Here’s a list of a few solutions that SMEs should go for or strengthen to become competent in the market:

  • Enterprise
  • Hybrid-Work
  • Communication
  • Supply and Logistics
  • Workforce Management
  • Cloud and Cyber Security
  • Data Collection and Analytics

SMEs’ Reliance on Logistic Services

Nearly 70 percent of the UAE enterprises, mostly SMEs, trade their goods globally than locally. The ongoing digitization of logistic and supply-chain operations on par with the evolution of supporting technologies level the playing field for them. In addition, the geographical placement of the country added advantage for businesses to reach nearly half of the world population. The transformative growth and burgeoning investments in the e-commerce sector also seeding new hopes.

Here are some of the logistic options that businesses can choose from.

Road freight: It is one of the traditionally competitive logistic segments and it has a well-maintained infrastructure in the UAE. However, it required more efficiency and better technological support

Air freight: Most SMEs rely on air freight services, through which goods can travel almost two-thirds of the world population in eight hours from the UAE

Sea freight: For transporting heavy and large quantities of goods, sea freight becomes the only option.

Including several home-grown ones, there is a large number of logistics and shipping companies, DP World, Tristar Logistics, DSV, FedEx, DHL, Aramex, and Fetchr to name a few, operate in the UAE with tailored services for SMEs. Most of them offer road, air, and sea freight services.

To conclude, the COVID-19 pandemic had a lot of lessons for the SME ecosystem that includes enterprises, solutions providers, financial institutions, and logistic companies. All of these sectors consistently need to exchange values for common good. Existence in these sorts of turbulent times is possible only when effective integration and communication happen!

Automotive

Inside XPENG Brand Night: AI Mobility Lands Centre Stage in Dubai

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On 2 November 2026, XPENG and Gulf Star Motors put Physical AI, flagship SUVs and design culture in front of UAE guests. 

Here is what the Brand Night and New Product Launch felt like from the floor.

Dubai has seen plenty of smart EV launches. Fewer evenings try to stage the whole idea of AI mobility in one room: cars, software, design language and a glimpse of what comes after the road.

On 2 November 2026, that is what XPENG Brand Night and New Product Launch set out to do, hosted with Gulf Star Motors, a subsidiary of Ali and Sons and the official distributor of XPENG in the UAE.

The brief was clear from the moment the programme began. This was not only a reveal of two SUVs. It was a statement that XPENG wants UAE buyers to see the brand as a technology company that happens to make cars, and that Dubai remains the beachhead for that story.

Two Flagships, One UAE Brief

The headline products were the G9L and the GX, both presented for UAE customers. XPENG positions the G9L as its Next-Gen AI Flagship SUV, offered with battery-electric and Kunpeng Super Range Extender powertrains. Official materials cite an overall length of 5,120 mm and a wheelbase of 3,100 mm, with an AI cockpit and advanced driver-assistance technologies aimed at local buyers who want flagship presence without giving up software-led features.

The GX, XPENG’s full-size six-seat flagship SUV, was shown with the same dual choice: battery-electric and Kunpeng Super Range Extender. XPENG quotes a pure-electric range of up to 430 km and a combined range of up to 1,585 km for the Super Range Extender configuration on an 800V architecture, a pairing that speaks directly to UAE driving: long distances, summer loads, and the need for range confidence beyond the city.

The GX also carries the computing story that XPENG wants associated with its upper models: Turing AI computing of up to 3,000 TOPS and the VLA 2.0 intelligent-driving system, framed here as advanced driver assistance and an AI-powered cabin rather than science fiction. On the night, that distinction mattered. Guests were not asked to believe in a driverless future in the abstract. They were asked to look at hardware and interfaces that already sit in production-bound products.

Beyond the Unveil

The programme deliberately stretched past a spotlight moment. Guests experienced the GX in person, a useful reminder that the model has already drawn strong UAE interest, with more than 500 confirmed orders reported ahead of launch. In a market that can be sceptical of new EV brands until the ownership story feels solid, that pre-launch demand figure is part of the narrative as much as any stage lighting.

Workshops on XPENG’s Vital Flow design language sat alongside the metal. Vital Flow, inspired by Design VP JuanMa Lopez, formerly Head of Exterior Design at Ferrari, emphasises flowing, muscular surfaces that look alive even when a vehicle is standing still. For a UAE audience used to premium sheet-metal theatre, the pitch was less about ornament and more about motion held in stillness, a design line that tries to make technology feel intentional rather than bolted on.

There was also a session on XPENG’s flying car programme, the piece of the evening that most clearly connects Brand Night to the brand’s Physical AI agenda of intelligent vehicles and advanced air mobility. It is the kind of slot that can tip into hype. On this programme it was presented as part of a wider stack, not as a separate circus act.

Physical AI, Explained for Dubai

Dubai Brand Night brings XPENG’s ‘Physical AI for All’ vision to the region, with the GX and G9L showcasing how intelligent mobility and Kunpeng Range Extender technology can meet the demands of long-distance driving in the region’s challenging climate..

Dr. Brian Gu, Vice Chairman and President, XPENG

That climate line is not decorative copy in the UAE. Heat, highway pace and uneven charging density still shape purchase decisions, which is why range-extender messaging sits so comfortably next to pure-electric talk here.

The phrase Physical AI can sound abstract until you hear it next to concrete products. On Brand Night it meant AI cars with serious onboard compute, a design system with a named chief, and air-mobility ambitions shown in the same programme as showroom SUVs. Whether every guest left fluent in the jargon is beside the point. The structure of the evening forced the association: software, design and future mobility were not side rooms. They were the spine.

A Local Network Behind the Night

XPENG did not arrive in Dubai as a stranger. The UAE was XPENG’s first market in the GCC. The company announced its UAE partnership in February 2024 and opened the market on 19 October 2024 with the G6 and G9. Gulf Star Motors has since established showrooms on Sheikh Zayed Road in Dubai and in Abu Dhabi, the retail footprint that makes a Brand Night feel like a continuation rather than a cold start.

After-sales has been part of that story too. XPENG’s first Middle East spare-parts warehouse in Jebel Ali Free Zone was inaugurated on 15 October 2025.

XPENG’s rapid growth across the Middle East is being supported by a robust logistics foundation, with the Dubai hub enabling timely parts supply and faster response to local customer needs — an important factor in building long-term confidence in the brand.

Ken Wang, General Manager and Managing Director, XPENG Middle East, Africa and Caucasia

Why the UAE Timing Fits

The Brand Night and New Product Launch arrives as the UAE continues to lead the GCC on electric-mobility readiness. According to Arthur D. Little’s GEMRIX 2026 as reported by WAM, the UAE ranked first among GCC markets and 22nd globally, with electric vehicles accounting for around 9 percent of new vehicle sales in 2025, about 2,800 charging points nationwide, and a national ambition for electric and hybrid vehicles to make up 50 percent of vehicles on its roads by 2050.

Dubai aims for electric vehicles to represent more than 15 percent of its fleet by 2030. The Brand Night and New Product Launch sits within that national drive under the UAE Net Zero 2050 Strategy.

Those numbers do not make any single launch inevitable. They do explain why a night built around AI mobility, long-range electrified SUVs and after-sales confidence can land cleanly here. Net Zero 2050 is policy context. Brand Night was product and persuasion.

What Stayed With Us

Leave the slogans aside and the evening still had a practical shape. Two SUVs for UAE customers. A design language with a named lead. A flying-car session that kept Physical AI from sounding like a brochure heading alone. A distributor network already on Sheikh Zayed Road and in Abu Dhabi, with a JAFZA parts hub behind it.

Through Gulf Star Motors, XPENG Brand Night and New Product Launch strengthens the brand’s offer of AI-enabled, long-range electrified SUVs for customers across the UAE. The cars will still have to win in traffic, heat and service bays. On 2 November, the brand at least made sure the UAE saw the wider system it wants those cars to sit inside.

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Chinese Cars Are Reshaping the GCC Market, but Resale Value Could Be the Next Battleground

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The GCC automotive market is undergoing a significant transformation. Chinese manufacturers are expanding their presence, established brands are navigating supply chain disruptions, and consumers are reassessing the economics of vehicle ownership.

At Keyloop Fusion Live Dubai, Srijith KN, spoke with Nour Abu-Safe, Head of Insights & Analytics at AutoData Middle East, about the changing competitive landscape, the impact of regional logistics challenges, and the opportunities emerging for automotive retailers.

Drawing on market intelligence, vehicle valuation data and industry research, she explains why technology alone may not guarantee long-term customer loyalty, why hybrids currently offer stronger residual value, and why the next major opportunity for dealerships could lie in pre-owned Chinese SUVs.

How are disruptions around the Strait of Hormuz affecting established automotive brands, and could the market changes become permanent?

Initially, many believed the disruption would be temporary. However, the data is beginning to show that market conditions are solidifying and businesses are adapting.

Traditional manufacturers, particularly Japanese brands such as Toyota, Nissan and Lexus, are experiencing challenges getting inventory into the region.

Chinese manufacturers have been more agile because several operate their own vehicle carrier fleets and logistics networks. This has allowed them to establish alternative routes into the GCC.

We have seen a 90% reduction in Japanese vehicle imports into the region, linked to the disruption around the Strait of Hormuz.

Alternative routes through ports outside the Gulf and via the Red Sea and Saudi Arabia are increasingly being used. However, these arrangements are creating delays, with vehicles now taking approximately six to eight weeks to reach showrooms.

The important development is that the market is adapting. Some of the alternative logistics routes established during this period could remain in use for years to come.

Are Chinese automotive brands attracting an entirely new generation of buyers, or are they winning customers away from established manufacturers?

It is a combination of both.

Younger consumers, particularly those between 19 and 30, are increasingly attracted to Chinese vehicles because of their styling, advanced technology, competitive pricing and safety features.

For younger families, especially those entering parenthood, these features can be important purchasing considerations.

Chinese vehicles also tend to offer attractive warranty and servicing packages, making them appealing to consumers who want to reduce their overall ownership costs.

Older buyers, particularly those in their 40s and 50s, generally demonstrate stronger loyalty towards established manufacturers and premium brands.

However, Chinese manufacturers are increasingly entering the premium segment as well, and we are beginning to see them capture some of that market share.

These demographic observations are also supported by consumer research, including studies published by YouGov, which we reference in our market analysis.

Chinese vehicles are becoming increasingly sophisticated. But can manufacturers sustain customer loyalty when technology evolves so quickly?

This is one of the most interesting challenges facing Chinese manufacturers.

Advanced technology is a powerful selling point. It looks attractive in marketing materials and helps manufacturers differentiate their vehicles.

However, rapid technological advancement also accelerates depreciation.

When a manufacturer introduces a significantly improved model within a short period, previous model-year vehicles can quickly appear outdated. That creates challenges for residual values and the used-car market.

For dealerships, the opportunity is to identify vehicles that offer a balance between modern technology and proven, practical features.

Hybrid vehicles are an interesting example because they combine improved efficiency with familiar internal combustion technology.

A vehicle that balances innovation with long-term usability may be better positioned to retain customers over five to ten years than one that depends primarily on the latest technology.

Chinese manufacturers are doing many things well, but the next few years will reveal how effectively they manage this challenge.

With affordability becoming increasingly important, how are vehicle financing and leasing models evolving across the GCC?

Vehicle demand remains present, and manufacturers have found ways to maintain supply despite the disruptions.

However, we could see greater pressure on consumer finances over the coming year.

That creates opportunities for financing and leasing providers.

Financing offers with zero down payment are becoming particularly relevant for buyers who may not have sufficient funds available for a substantial upfront payment.

On the leasing side, some operators are reporting demand increases of approximately 30% to 35%.

Consumers still need vehicles for everyday mobility, but some are becoming more reluctant to take on the financial commitment and risk associated with outright ownership.

Leasing offers an alternative that can address those concerns.

What is the biggest opportunity dealerships may be overlooking today that could become particularly important in 2027?

Used Chinese SUVs.

SUVs represent the largest vehicle body-type segment in the region, and the growing population of Chinese SUVs creates a significant opportunity for dealerships.

The first owner typically absorbs much of the vehicle’s depreciation during the initial two to three years. In some cases, that depreciation could be around 50%.

For dealerships, this creates an opportunity to develop certified pre-owned programmes around relatively young Chinese SUVs.

A three-year-old vehicle may still be in excellent condition and covered by its original warranty or service package.

If dealerships can price these vehicles correctly, they can attract buyers who cannot afford a brand-new SUV but still want a modern, well-equipped vehicle.

This could become an important growth segment for the automotive retail industry.

For consumers considering a vehicle purchase today, which offers the strongest proposition: petrol, hybrid, electric or a competitively priced Chinese vehicle?

There is no single answer because the decision depends on individual priorities.

However, when we compare petrol, hybrid and electric vehicles, our current data indicates that hybrids retain their value best.

They offer fuel efficiency while maintaining the familiarity and convenience of an internal combustion engine.

For buyers concerned about long-term value, that makes hybrids particularly attractive.

Chinese manufacturers, meanwhile, are becoming increasingly competitive on design, pricing and technology.

Vehicles such as the ROX 01 and Jetour G700 demonstrate how Chinese brands are entering segments traditionally dominated by established SUVs such as the Toyota Land Cruiser and Nissan Patrol.

The competitive landscape is changing considerably.

One particularly interesting insight from our latest data is that 48% of the new 2027-model vehicles arriving in the UAE are Chinese brands.

That tells us how aggressively these manufacturers are planning their product introductions, expanding supply and positioning themselves to attract both new and existing automotive customers.

The next few years will be particularly interesting as these changes reshape the balance between established manufacturers and emerging competitors.

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The AI Learning Dilemma: Better Answers, But Better Thinkers?

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As artificial intelligence becomes embedded in higher education, universities face a growing challenge: ensuring that students develop independent thinking rather than simply producing polished AI-assisted work. From rethinking assessments to preserving the value of intellectual effort, the conversation is shifting towards what Turnitin calls learning integrity.

In this interview with Amal Dimashki – Regional Director, MENAT & Pakistan, Turnitin explores how institutions can balance AI adoption with critical thinking, meaningful assessment and the development of essential learning skills.

Amal Dimashki, Regional Director – MENAT & Pakistan, Turnitin



Students are becoming increasingly comfortable prompting AI, but how can universities ensure they are still developing independent reasoning and critical thinking rather than simply producing better AI-assisted answers?

Prompting is becoming an important skill, but being able to write a sophisticated prompt is not the same as being able to think critically.

AI can be a very effective learning partner. It can help students brainstorm, explore different perspectives, challenge an argument or receive feedback on something they have written. But students still need to do the cognitive heavy lifting. If they simply prompt AI for an answer and then refine that answer until it looks better, we may improve the quality of the output without necessarily developing the student’s thinking.

This is why AI literacy needs to go beyond teaching students how to prompt. Students need to learn how to critically evaluate AI-generated content, verify information and sources, question what they are given and make their own judgments about the output. Turnitin’s guidance on responsible prompting encourages students to engage with AI iteratively and interrogate its responses rather than simply accepting what it produces.

We want students to use AI as a learning partner while remaining actively engaged in the learning process and taking ownership of the work they produce. Turnitin’s guidance to students reinforces this by encouraging them to ensure that the majority of their work remains their original thinking.

Universities therefore need to develop AI literacy alongside critical thinking and independent judgment, so that becoming better at using AI does not come at the expense of developing the skills students are there to learn.

What should a modern assessment look like if institutions want to measure a student’s actual understanding rather than just the quality of the final submitted work?

In an AI-enabled environment, assessing only the final product gives us a limited view of whether learning actually took place. A polished final submission does not necessarily tell us how the student arrived there.

This is where a process-based approach to assessment becomes increasingly important. Educators can build meaningful checkpoints into the learning journey through outlines, drafts, formative feedback, revisions and reflection. This allows them to see how the student’s thinking developed, how they responded to feedback and where they may need additional support. Turnitin’s multipart assignments, for example, are designed around structured checkpoints for guidance and reflection throughout the writing process.

At Turnitin, we refer to the broader framework behind this as learning integrity. It expands traditional academic integrity by placing greater emphasis on the integrity of the learning process and ensuring that students are doing the work necessary to learn and develop.

It brings us back to a familiar principle: “show your work.” Greater visibility into drafts, revisions and the development of ideas gives educators richer evidence of how a student approached the assignment rather than relying on a single snapshot at the end. Turnitin Clarity, for example, provides visibility into how students develop their work from ideation through to final submission.

This does not mean making every assessment more complicated. It means designing assessment around the learning objective and creating opportunities for students to demonstrate that they have developed the skills being assessed.

The final submission will continue to matter, but it can be considered alongside evidence of the learning process that produced it.

AI makes it possible to get answers, summaries and explanations almost instantly. Do you worry that this could reduce students’ ability to sustain attention, read deeply and work through difficult material without immediate assistance?

There is certainly a risk, and students themselves recognise it. Turnitin’s research found that 64% of students are concerned that the use of AI in education may be shortcutting their learning.

Learning should not become a completely frictionless process. Researching a subject, developing a point of view, articulating ideas with evidence, editing and working through something difficult all require effort, and some of that effort is where learning happens.

Turnitin refers to this through the concept of “productive struggle.” Cognitive growth and long-term retention require students to engage with difficulty rather than having every challenge immediately removed for them.

That does not mean students should struggle without support. AI can provide guidance and feedback throughout the learning process. Turnitin Clarity’s AI Assistant, for example, is designed to prompt reflection and support students throughout their writing without generating the full response for them.

As AI becomes more capable, preserving productive struggle will become increasingly important. We want students to benefit from the support AI can provide without removing the effort involved in developing knowledge and skills.

4. Looking ahead, how do you see the role of academic integrity evolving as AI becomes embedded in writing, research and learning, and what will universities need to change over the next few years?

Academic integrity will remain fundamental, but its role is expanding as AI becomes embedded in learning.

At Turnitin, we describe this evolution through learning integrity, a proactive expansion of traditional academic integrity that places greater emphasis on the integrity of the learning process. It reflects the need to understand how students are developing their work and ensure they are developing the skills their education is intended to build.

Over the next few years, universities will need to translate this into practice. AI governance needs to provide educators with clear guidance, while recognising that responsible AI use will not look the same across every subject or assessment. Turnitin’s learning integrity framework recognises a spectrum ranging from no AI in some contexts to defined AI use cases and more open use in others.

Educators will also need greater agency over how AI is introduced into teaching and assessment. Turnitin’s latest Learning Integrity Insights found that AI decision-making is moving closer to faculty and teaching and learning leaders, while educators are asking for education-specific AI that is flexible enough to reflect how they actually teach and design assignments.

Technology therefore needs to adapt to pedagogy, rather than pedagogy adapting to the technology. This is the principle behind Turnitin Clarity’s configurable AI settings, which allow educators to determine the level and type of AI support appropriate for an individual assignment.

Over the next few years, universities will need to bring these pieces together: clear AI governance, greater educator agency, assessment practices that support learning integrity, and technology designed around the needs of teaching and learning.

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