AI Transformation in the Middle East: Challenges and Opportunities

Exclusive Interview with Ramprakash Ramamoorthy, Director of AI Research, ManageEngine

How do you see AI evolving in the Middle East over the next five years?

The UAE government is heavily investing in AI for economic growth, innovation, and research. In the next five years, AI will be used in everyday life with widespread adoption in industries such as healthcare, finance, and infrastructure. AI will also be used for improved customer personalization, smart city initiatives, and the expansion of GenAI applications. The Artificial Intelligence and Advanced Technology Council (AIATC) and the UAE Council for AI and Blockchain have a strong focus on ethical AI practices and responsible development, which will play a crucial role in ensuring equitable progress throughout the region.

A recent study on AI and LLMs in the MENA region highlights that AI will be transformational, with professionals in the Middle East ranking AI as the trend most likely to reshape their roles by 2029, with 86% expecting widespread adoption to impact their profession significantly. Moreover, AI is projected to contribute up to USD 320 billion to the Middle East’s economy by 2030, making up 11% of the region’s GDP. These figures highlight AI’s profound economic and societal impact, shaping the region’s future across multiple sectors.

How are governments and regulatory bodies in the Middle East supporting AI development?

Since 2018, the UAE Council for AI and Blockchain has been crafting AI-friendly policies, offering scholarships, and supporting research on emergent tech. The country has built a strong AI ecosystem with high-performance computing, a GitHub hub for open-source AI projects, and a federally funded AI supercomputer lab supporting researchers and startups. Data-sharing initiatives have led to impactful projects like AI-driven tuberculosis detection and automated wildlife monitoring. The Artificial Intelligence and Advanced Technology Council (AIATC) in Abu Dhabi further drives AI policy, research, and global collaboration. By 2031, the UAE aims to establish itself as a world leader in AI.

How can organizations strike a balance between innovation and risk management during their digital transformation journey?

By following government regulations and protocols, organizations can drive innovation while managing risks effectively. A successful digital transformation requires an iterative approach, allowing controlled experimentation before full-scale implementation. As businesses expand their digital footprint, investing in AI-driven cybersecurity and employee upskilling becomes crucial to mitigating threats. AI enhances risk detection with dynamic thresholds, automates compliance, and enables real-time monitoring for proactive decision-making. To maintain balance, companies should integrate risk management from the start and prioritise initiatives that minimize disruptions.

What skills and workforce transformation are needed to maximize AI’s potential in business operations?

To maximize AI’s potential in business operations, organizations must prioritise transforming the workforce by investing in upskilling initiatives. Technological competencies, including data analysis and AI system management, will be essential. The demand for advanced IT and programming skills is expected to grow by up to 90% between 2016 and 2030, emphasising the need for strong technical expertise. Simultaneously, emotional intelligence skills like empathy and higher cognitive abilities such as problem-solving, critical thinking, and creativity will play a key role. A workforce that blends technical skills and cognitive skills will be better prepared to collaborate with AI and drive long-term business success.