New research from Endava revealed that organisations across the United Arab Emirates (UAE) and Saudi Arabia are increasingly recognising the strategic importance of becoming AI-native and adopting Agentic AI technologies. However, many still lack the operational foundations required to achieve this goal.

The findings, drawn from senior business leaders across both markets, reported that organisations are keen to capture the benefits of Agentic AI but face early-stage adoption challenges, funding delays, and concerns around responsible implementation.

Across the region, there is broad alignment on the direction of travel. More than nine in ten respondents believe becoming AI-native is essential for maintaining a competitive edge. Many organisations have already mapped out their evolution plans. Yet, over a third reported that while an AI-native strategy exists, the budget to execute it has not been secured. Despite this, confidence remains high, with 75 per cent expecting to reach an AI-native operating model by 2028.

The research highlighted that adoption of Agentic AI is already reshaping innovation across the Gulf. A growing majority, 73 per cent, reported that traditional agile methodologies are losing relevance as firms move towards autonomous, self-improving systems capable of managing complex processes in real time. This shift is especially visible in fintech, where more than 80 per cent of respondents believe Agentic AI is creating new business models and revenue streams. Leaders also reported that AI-native systems are lowering barriers to entry, enabling both established players and new challengers to expand in the competitive financial landscape.

When asked about the impact of Agentic AI on customer experience and operational resilience, leaders reported improvements in fraud detection, personalised and autonomous financial guidance, and faster, always-on service. They also revealed that AI can strengthen organisational robustness by managing risk at machine speed, automating compliance processes, and improving real-time monitoring of critical systems.

Despite the momentum, the research revealed a readiness gap. Most organisations, 85 per cent, are still prioritising basic AI applications such as chatbots, predictive analytics, and workflow automation before progressing to advanced Agentic AI systems. Concerns over data privacy, security, and transparency continue to slow adoption, while data quality issues and cybersecurity risks remain key barriers.

To address these challenges, organisations are taking steps to ensure responsible AI integration. Many are embedding ethical guidelines into AI development, reported 50 per cent, aligning emerging Agentic AI systems with regulatory requirements, 42 per cent, and strengthening data privacy and security protections, 41 per cent. These efforts indicate a growing commitment to balancing innovation with accountability.

David Boast, General Manager – UAE & KSA at Endava, said, “Organisations in the UAE and Saudi Arabia are at a pivotal moment. There is a clear understanding of the value that an AI-native future can unlock, but also a recognition that responsible adoption is essential. Those that invest in Agentic AI with strong governance frameworks today will be best placed to lead the next wave of innovation across the region.”

Endava announced it is supporting this shift through AI-enabled approaches like Dava.Flow, helping organisations modernise quickly while maintaining trust, transparency, and organisational health.

The full research is available at: Endava Report on AI-native Operations

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