Why businesses must bridge the ‘generational gap’ to align with Saudi’s AI ambitions

Saudi Arabia has made no secret of its bold ambitions in artificial intelligence. With plans to create a $40bn AI investment fund, the kingdom is positioning itself as a global leader in the space.

Yet, while aspirations are high, the reality on the ground paints a more complex picture. Many Saudi organisations remain in the early stages of their AI journeys, with only a minority currently feeling fully prepared to implement AI solutions.

Encouragingly, confidence abounds, with most leaders optimistic about their readiness in the coming years.

A significant challenge lies in bridging the generational gap in AI adoption. Younger generations, particularly Gen Z, have grown up immersed in technology and tend to feel at ease leveraging AI in the workplace. Millennials, who have witnessed firsthand the transformative power of digital innovation, are close behind. In contrast, more experienced professionals, including Gen X and Baby Boomers, often express greater caution, reflecting a natural hesitancy to embrace new ways of working.

This divergence is especially relevant as in the kingdom, nearly two-thirds of the population are under 30. Yet older generations still hold many decision-making roles within organisations. As companies aim to unlock AI’s transformative potential, they must address this gap, ensuring that employees across all demographics are equally equipped to harness AI’s benefits.

Attracting and retaining younger leaders in Saudi

The workforce is undergoing a profound demographic shift. Globally, Millennials and Gen Z now make up about half of all employees, and this figure is projected to rise to 70 per cent by 2030.

In Saudi Arabia, with its youthful population, this transition is happening even faster. For businesses, this means meeting the expectations of a tech-savvy workforce is no longer optional — it’s essential.

Failing to deliver a robust digital experience risks alienating younger employees, who increasingly expect AI-driven tools to enhance their work lives. The good news is that the large majority of Saudi leaders agreed that AI will help them deliver a better digital experience for end users. So, companies can and should promote their use of AI to attract and retain young talent.

Businesses that successfully integrate AI into their operations not only boost productivity but also strengthen their appeal to emerging talent, creating a competitive edge in recruitment and retention.

However, for companies that want to fully leverage their investments in AI, it is not enough to focus solely on using AI to deliver better digital experiences for younger workers. To make AI transformational, organisations must also improve their more senior-level employees’ comfort level when using AI.

Empowering senior staff through training

While attracting younger employees is crucial, organisations must also focus on bringing more experienced team members on board with AI initiatives.

Resistance to change often stems from a lack of familiarity, and targeted training can be a game-changer. Companies that prioritise comprehensive AI training see a marked difference in outcomes, not only in terms of adoption rates but also in how effectively AI is utilised across the business.

Investing in training programmes helps break down barriers, equipping all employees to use AI tools confidently and responsibly. As organisations shift their focus from operational efficiencies to broader productivity and profitability goals, such investments will pay long-term dividends.

The importance of training cannot be overstated, as training on AI utilisation helps all employees more effectively use AI to transform the business.

Currently, most organisations are using AI in IT to drive operational efficiencies, whilst, in three years, most companies expect AI to drive business productivity and improve profits. Therefore, investing in training now will be critical for the long-term success of AI implementations.

Follow the leaders

The most successful organisations take a strategic approach to AI adoption. Rather than rushing in or relying on generic solutions, they invest in tailored strategies that align with their unique business goals. They place a strong emphasis on training and use AI to enhance the digital experience for both employees and customers.

For Saudi businesses, following this example means recognising and addressing the demographic differences in AI adoption.

By investing in the right tools, fostering a culture of inclusivity, and prioritising education, companies can bridge the generational divide and turn their AI aspirations into reality. In doing so, they won’t just align with Saudi Arabia’s AI ambitions — they’ll help shape the future of work in the kingdom.

The writer is the CIO at Riverbed Technology.