Boston Consulting Group (BCG) has released its latest report, Unlocking Potential: Strategies Driving GCC’s Digital & AI Maturity, which explores how organizations in Qatar, Saudi Arabia, and the UAE are leveraging digital and AI strategies to accelerate transformation. The report reveals that companies with advanced digital and AI capabilities experience significantly higher revenue and enterprise value. According to the study, organizations with high digital and AI maturity allocate 2.4 times more funding to AI initiatives and dedicate 2.3 times more of their workforce to digital and AI transformation in 2024. These organizations also launch digital and AI products 1.25 times faster and scale AI and generative AI (GenAI) solutions 2.3 times more effectively.
The GCC region is increasingly adopting AI, with 47% of organizations using AI to drive measurable business value. Many have successfully integrated AI into their core operations, leading to improved efficiency. The public sector, in particular, is leading the way, with digital and AI readiness outpacing global peers thanks to ambitious government initiatives and successful digital transformations since 2021. Sectors such as financial institutions, technology, and healthcare are at the forefront of digital and AI maturity in the GCC. These digitally mature organizations achieve 2.1 times higher market share and 25% faster time-to-market for digital and AI products compared to their less mature counterparts.
Despite this progress, the report identifies several challenges. While 25% of GCC organizations have reached the top two stages of digital and AI maturity—compared to 31% globally—there are still significant barriers to organization-wide AI adoption. These include challenges in accessing high-quality data, integrating with existing IT systems, and a shortage of skilled talent. Many organizations in the “emerging” maturity category have successfully transformed digitally but still face difficulties in scaling their initiatives across the organization.
Rami Mourtada, Partner & Director of Digital Transformation at BCG, emphasized, “The real opportunity with AI lies in reshaping core business functions. GCC companies, particularly in the public sector and financial institutions, are rapidly scaling AI deployment. Success depends on how well organizations balance innovation with practical implementation and integrate capabilities that deliver long-term benefits.”
To accelerate digital and AI transformation in the GCC, BCG recommends five key strategies: re-aligning organizational strategy with a digital-first vision, setting bold goals for AI adoption, investing in people and technology platforms, maintaining a pipeline of innovation pilots, and prioritizing high-ROI initiatives to drive change and build momentum for transformation.
The report concludes that while the GCC has made significant strides in digital transformation, organizations must continue to focus on high-impact initiatives that generate measurable ROI and foster innovation. By investing in AI capabilities and aligning strategies with a digital-first approach, organizations in the region can unlock untapped potential and position themselves for long-term success. Dr. Lars Littig, Managing Director & Partner at BCG, noted, “The GCC’s digital future depends on building deep organizational capabilities, not just infrastructure. Digitally mature organizations see threefold returns on AI investments, yet gaps remain across sectors. To turn vision into business value, organizations must prioritize foundational elements like data architecture and talent development.”