The rise of Generative AI heralds a new age for Middle East technological and economic advances

By Amit Ray, Managing Director, Protiviti Member Firm for the Middle East

ChatGPT’s debut in late 2022 thrust Generative AI (GenAI) into the public limelight, making waves with its impressively human-like interactions. The launch signaled a paradigm shift, propelling AI into general-purpose technology comparable to the transformative impacts of the steam engine, electricity, and the internet. While the initial hype may wane under the weight of real-world implementation, the genuine potential of generative AI will unfold as individuals and enterprises uncover innovative applications that reshape their daily operations and lives.

GenAI carries profound implications for both businesses and individuals. It unlocks the power of automation, efficiency, and cost savings for businesses by streamlining content generation and customer support. Moreover, it offers opportunities for enhanced personalization, superior customer experiences, and a competitive edge through innovation. On an individual level, the technology can empower content creation, self-expression, and informed decision-making.

In creative sectors like music, art, and design, it helps artists by generating unique content, automating tasks, and providing new creative tools. In healthcare, GenAI is expected to revolutionize medical imaging analysis, drug discovery, and personalized treatment plans, improving diagnoses and patient care. The manufacturing sector will benefit from process enhancement, optimizing design, reducing waste, and improving production efficiency. In finance and banking, GenAI will supercharge fraud detection, risk assessment, algorithmic trading, and customer service, enhancing decision-making and customer experiences.

Gulf countries have been among the first to embrace this technology. Abu Dhabi government backed TII launched Falcon LLM to advance AI capabilities in the region. Falcon is offered as an open-access model for research and commercial purposes and will strengthen the UAE’s AI credentials. In October this year, the Dubai Future Foundation (DFF) unveiled the Dubai Generative AI Alliance, a coalition of technology companies pooling their international networks and expertise to address complex government challenges. Later, Dubai announced the “Global Prompt Engineering Championship” with a substantial prize of AED1 million ($272,290), marking it as the most significant challenge of its kind yet.

Meanwhile, media reported that Saudi Arabia and the UAE are buying up thousands of the high-performance Nvidia chips crucial for building AI platforms as both countries pursue ambitious plans to turbocharge their economies.

Mitigating GenAI Risks and Ensuring Responsible Adoption

Maximizing the potential of generative AI requires a balanced acknowledgment of its immense capabilities alongside a proactive approach to addressing associated risks. Several key considerations must be prioritized to ensure responsible adoption and mitigate negative impacts.

Ethical concerns arising from the potential misuse of AI-generated content, biases in training data, and threats to data privacy underscore the importance of responsible use, transparency, and accountability. These measures are essential not only to mitigate risks but also to maintain public trust.

With such potential risks, regulation is inevitable, and governments are already stepping in to rein in the application of these powerful technologies. During the Dubai Generative AI Alliance launch, Khalfan Belhoul, CEO of the Dubai Future Foundation, called for global unity to tackle the formidable challenges posed by AI, stressing that the cooperation of joint alliances is essential for designing and implementing the most effective and resilient regulations.

China was first, setting a comprehensive list of rules to regulate emergent AI technologies before its tech companies were allowed to launch GenAI applications. The US followed in October, with President Biden issuing an executive order on “Safe, Secure, and Trustworthy Artificial Intelligence.” The directive seeks to ensure that America leads the way in seizing the promise and managing the risks of artificial intelligence (AI). Meanwhile, the EU AI Act aims to turn Europe into a global hub for trustworthy AI by laying down harmonized rules governing the development, marketing, and use of AI in the EU.

Moreover, the reliance on vast amounts of data in generative AI systems exposes security vulnerabilities. Robust security measures are vital to safeguard against privacy breaches or malicious manipulation of AI-generated content. The rapid advancement of generative AI may outpace legal and regulatory frameworks, leading to legal and ethical challenges. Collaboration with legal experts is necessary to address intellectual property rights, accountability, liability, and governance issues.

Further, mass job displacement remains a significant risk as AI automates tasks, necessitating proactive planning by society. Investing in reskilling and upskilling programs becomes imperative to mitigate adverse effects on employment.

There’s also the danger of overhyping the capabilities of generative AI, which can lead to unrealistic expectations, resulting in disappointment, wasted resources, and missed opportunities. A balanced understanding of the technology’s limitations is vital for responsible adoption. Addressing these risks demands a collaborative approach involving researchers, practitioners, policymakers, and the public.

The world has been making progress in addressing some of the more adverse effects of climate change; there are fears AI could reverse these gains. A peer-reviewed analysis published in October estimated that AI systems worldwide could use as much energy in 2027 as all of Sweden. Therefore, conversations on sustainability and AI development must occur concurrently.    

Exactly one year after the blockbuster introduction of ChatGPT, COP28 brought global business and political leaders to address climate change in Dubai. The United Nations said on the summit’s opening day that it was partnering with Microsoft on an A.I.-powered tool to track whether countries are following through on their pledges to reduce fossil fuel emissions, helping to solve one of the thorniest issues in international climate diplomacy.

Middle East government and business leaders can seize the GenAI opportunity by being agile and adaptable in this evolving field. Embracing an agile mindset, remaining open to possibilities, collaborating with legal experts, and monitoring the impact will position organizations to capitalize on emerging opportunities, ensure compliance, and stay ahead of the competition. Proactively preparing for GenAI’s disruption allows organizations to confidently navigate the evolving landscape, harness its potential, and thrive.

By taking these comprehensive steps, organizations can proactively prepare to embrace the potential disruption of Gen AI. This readiness enables them to harness its potential, confidently navigate the evolving landscape, and stay ahead of the competition.