E& and IBM Report Highlights AI Adoption Trends in MENA

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A new report by e& and the IBM Institute for Business Value reveals transformative trends in AI adoption, focusing on the Middle East and North Africa (MENA) region. Titled “MENA’s AI Advantage: Opportunity to Leap Ahead and Lead,” the study showcases the region’s potential to become a global leader in AI innovation, driven by unique opportunities and challenges identified through interviews with key CEOs and policymakers from the UAE, Saudi Arabia, and Egypt.

The report highlights that 65% of MENA CEOs are advocating for Generative AI (GenAI) adoption, surpassing the global average of 61%. This momentum is fueled by government support, infrastructure investments, upskilling initiatives, and collaboration across industries. These factors are positioning the region to unlock significant economic value through AI integration.

According to Harrison Lung, Group Chief Strategy Officer at e&, the collaboration between e& and IBM provides a roadmap for CEOs and policymakers to bridge the gap between ambition and execution, enabling the region to lead in AI innovation. While 54% of MENA CEOs recognize advanced GenAI as critical for gaining a competitive edge, the report also highlights barriers to adoption, such as challenges in tech readiness, data privacy, security, and talent development.

The findings reveal a decline in confidence in digital infrastructure, dropping from 82% in 2023 to 64% in 2024. Additionally, only 54% of tech leaders believe their organizations have the necessary risk tolerance to execute AI strategies, compared to the global average of 63%. Organizational resistance to change is another challenge, with 41% of top management and 43% of employees cited as barriers to innovation.

The report outlines five priorities for AI transformation in the MENA region: aligning talent strategies with business needs, modernizing data architecture, addressing talent gaps, implementing responsible AI governance, and leveraging national AI strategies. It emphasizes that governments’ involvement and public-private partnerships are crucial for building an integrated ecosystem that aligns strategy, infrastructure, and talent to foster innovation.

Saad Toma, General Manager of IBM Middle East and Africa, highlights the importance of infrastructure, talent development, and data integration in accelerating AI’s impact across sectors. The report also identifies leadership alignment, integrated strategies, operational excellence, and public-private collaboration as key imperatives to drive transformation.

The MENA region’s diversity in economic structures and technological readiness requires tailored AI strategies for different markets. However, its unique combination of ambitious national visions, abundant resources, and a digitally empowered population positions it to lead the global AI transformation. Governments are crafting AI models suited to their specific needs, supported by collaborations with global technology leaders to develop essential infrastructure and unlock AI’s full potential.

The report concludes that bold investments, strategic upskilling, and cross-sector collaboration are essential for the MENA region to translate its AI potential into measurable impact, fostering a dynamic and sustainable AI ecosystem.