The Middle East is rapidly establishing itself as a global leader in AI-driven innovation. Businesses across the region are leveraging artificial intelligence (AI) to optimize supply chains, enhance decision-making, and accelerate digital transformation. In its latest AInomics CIO Playbook 2025, created in collaboration with the IDC, Lenovo highlights that Middle Eastern AI spending will grow by a staggering 72% this year. The growth signals growing business leader confidence in the transformation potential of AI. However, while the excitement remains high, scaling up solutions and bridging expertise gaps can potentially halt the momentum.

A Region Ready for AI Growth

According to the recent research conducted by Lenovo and IDC in its latest AInomics CIO Playbook, Middle Eastern organizations have some of the highest levels of satisfaction for AI initiatives on the planet. 44% of organizations tested showed that satisfaction levels were higher than expected, while 49% felt they met expectations, putting the region closely behind just Eastern Europe. This in turn showcases how the Middle East region is more welcoming towards the concept of having AI as a growth driver as well as the eagerness for AI adoption.

Generative AI is also in the front lines to lead the next wave of investment. Adoption rates are set to grow exponentially, from just 5% last year to 56% in the next 12 months. This shift illustrates the manner in which firms are moving away from legacy predictive and interpretive AI platforms to open up new opportunities with generative AI. A further 40% of firms plan to invest in data management capabilities, which further reinforces the imperative of high-quality data to support successful AI deployments.

Business Priorities Driving AI Investments

As firms turn their AI intentions into more detailed plans, they are making investments for definite business targets. Streamlining supply chains and inventories by 2025 remains the number one goal, followed by growing agility and responsiveness. AI is also being harnessed to enhance decision-making and drive digital innovation, to propel revenues and profitability.

These are priorities that show the dual role of AI in the Middle East: it is a catalyst for operational efficiency and a catalyst for strategic growth. But attaining these goals comes with overcoming persistent obstacles to adoption and scaling.

Breaking the Barriers to AI Success

Despite the strong momentum, there are several challenges that business organizations have to overcome in embracing AI. Scaling AI solutions inside businesses remains one of the biggest challenges, usually as a result of departmental silos and misalignment. There is also a lack of skilled AI talent, which is a big challenge, limiting organizations from being capable of maximizing the utilization of the technology. Infrastructure challenges such as application latency and endpoint deployment make it even more difficult to scale AI effectively. And, as in the case of the majority of other domains, poor-quality data is still a widespread challenge to AI efforts, making it a challenge to obtain actionable intelligence.

To address these challenges, organizations need to embark on an all-encompassing solution that brings together sound infrastructure, specialist manpower, and collaborative partnerships.

Hybrid Infrastructure: The Pillar of AI Success

Hybrid infrastructure is the new foundation for AI adoption across the Middle East. Although there is growing momentum in public cloud adoption, where 43% of organizations indicate plans to deploy, most (77%) will have on-premises, private, or hybrid environments preferred for their AI workloads. This is aligned with the emphasis on data sovereignty and compliance for the region when dealing with sensitive data.

AI PCs are also gaining traction as firms seek to improve the productivity levels of their employees. Currently, 14% of Middle Eastern companies extensively use AI PCs, while another 24% are testing them. As companies see the possibilities of edge computing and AI PCs, widespread adoption in the future is expected.

Building Strategic Partnerships for AI Rollout

With the complexities of deploying AI, Middle Eastern companies are placing a high emphasis on getting the right collaborations.

Middle Eastern businesses are putting a premium on working with solution providers who can address their most immediate AI needs. Topping the list is help with data privacy and security, addressing regional regulatory compliance while safeguarding sensitive information. Equally important is proficiency in AI solution scaling, as businesses seek partners with experience in deploying AI at an enterprise level. Robust infrastructure and hardware support are also fundamental to the effective running of AI workloads, providing the foundation for seamless operations. Practical support in the development and optimization of AI models is also required, enabling businesses to refine their expertise and derive maximum value from AI investments.

We at Lenovo understand the importance of these factors and are committed to delivering end-to-end solutions that empower businesses to overcome obstacles and achieve their AI vision.

A Smarter Future for the Middle East

The Middle East is at the intersection of its AI path. As anticipation builds and investments pour in, the region is well-positioned to set a global benchmark for growth and innovation. But this vision requires a united push to cross the hurdles ahead. By investing in hybrid infrastructure, fostering strategic partnerships, and creating high-skilled talent, businesses throughout the region can unlock the full potential of AI and drive long-term growth.

At Lenovo, we’re dedicated to making that a reality with our end-to-end portfolio of AI-enabled devices, infrastructure solutions, and professional services. We can build a brighter, more agile future for the Middle East—where AI drives real difference and delivers long-term value.

By Alaa Bawab, General Manager, Lenovo Infrastructure Solutions Group, META

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