Saudi Arabia among top emerging global economies in AI readiness, shows report

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Saudi Arabia stands among the top emerging global economies in AI readiness, according to a new report from Boston Consulting Group (BCG) titled GCC AI Pulse: Mapping the Region’s Readiness for an AI-Driven Future.

The study, based on BCG’s inaugural AI Maturity Matrix, designates Saudi Arabia as an “AI Contender”, a category it shares with 31 other economies worldwide, including the UAE.

The matrix categorises economies into four archetypes based on their AI readiness: AI Emergents, Practitioners, Contenders, and Pioneers, with the latter group including nations like the US, UK, and China.

Other Gulf Cooperation Council (GCC) countries, including Qatar, Kuwait, Oman, and Bahrain, were categorised as “AI Practitioners”.

The report indicates significant opportunities for further advancing AI readiness and leadership across the region, with Saudi Arabia demonstrating notable progress.

“Saudi Arabia’s strategic investments and ambitious vision in artificial intelligence exemplify how nations can leverage emerging technologies to rapidly transform their economies and enhance their global stature,” said Dr Akram Awad, MD and partner at BCG. “By aiming to attract $20bn in investments and developing sophisticated regulatory frameworks, Saudi Arabia is positioning itself at the forefront of AI innovation.”

Awad added that sustaining this dynamic growth will require “fostering an innovative ecosystem built on empowering local talent, enhancing academic-industry collaborations, and forming global partnerships that can catapult the nation into new frontiers of technological achievements.”

Saudi Arabia has a strategic strategy to advance AI readiness

The kingdom has made substantial advancements in AI since establishing the Saudi Data and Artificial Intelligence Authority (SDAIA) in 2019 and launching its national AI strategy in 2020.

The strategy aims for Saudi Arabia to rank among the top 15 AI nations by 2030.

The country’s AI talent pool has expanded to approximately 5,000 specialists. However, the report highlights an ongoing need to develop a self-sustaining ecosystem to reduce dependency on expatriate workers.

In terms of policy, Saudi Arabia introduced AI ethics principles in 2023 to align with global standards and has been strengthening its AI governance and regulatory frameworks to bolster AI adoption.

In May, Saudi Arabia launched HUMAIN, an initiative designed to drive the kingdom’s AI ambitions across the entire value chain. HUMAIN is expected to deliver advanced AI services, including Arabic large language models, data centers, cloud infrastructure, and international collaborations, to accelerate AI adoption in key sectors such as energy, healthcare, and finance.

This initiative is aligned with Vision 2030, with the goal of establishing Saudi Arabia as a global leader in AI innovation, research, and sustainable economic transformation.

On the investment front, Saudi Arabia has set a target to attract $20bn in AI investments by 2030.

The country registered nearly 200 AI-related patents in 2023, reflecting a significant increase since 2019. Despite this progress, it continues to aim for the level of breakthrough innovations observed in leading global economies.

The domestic AI ecosystem is described as robust, with 72 per cent of Saudi companies incorporating emerging AI technologies, supported by substantial investments in cloud and AI infrastructure.

Strengths identified in Saudi Arabia’s approach include its strong ambition, solid digital infrastructure, and effective AI governance.

Areas for enhancement

However, the report indicates areas requiring further enhancement, such as expanding the AI talent pool, increasing investments for long-term AI growth, and a greater focus on research and innovation to achieve global impact.

“Saudi Arabia’s progress in AI governance and adoption is commendable, showcasing a material increase in AI-related national maturity with widespread corporate adoption of AI technologies and ramp-up in patents,” said Rami Mourtada, partner and director at BCG. “Its true capacity to emerge as a global leader will hinge on its ability to rapidly scale-up and broaden its AI achievements.”

Mourtada emphasised that this includes “fostering a self-sustaining AI talent ecosystem, bridging the gap in breakthrough research, and driving impactful innovations beyond infrastructure and investment as critical areas.”

He concluded that the challenge lies in translating substantial financial, service delivery, and infrastructural investments into “tangible global AI leadership and pioneering impact that can transform both the domestic and international landscapes.”

BCG’s GCC AI Pulse report suggests several approaches to foster AI maturity in the Gulf. These include expanding AI capabilities through dedicated upskilling programs and attracting global talent to broaden the existing talent pool and infuse the regional market with international expertise and perspectives crucial for innovative leaps.

Furthermore, governance structures should be realigned to better adhere to evolving AI ethics frameworks and international standards, ensuring responsible and sustainable AI development.

Advancements in policies are expected to solidify Saudi Arabia’s reputation as a leader in ethical AI practices.

The report also identifies significant room for intensifying research and development investments to foster stronger academia-industry collaborations. This is aimed at spurring innovation and cementing Saudi Arabia’s position as a hub for cutting-edge technological advancements, potentially matching and even surpassing global AI leaders such as the US, China, Singapore, the UK, and Canada in specific areas.