Middle East Leads AI Growth with 72% Investment Surge

Business leaders and IT decision-makers across EMEA report the highest global satisfaction with AI projects in the past year, driving a 104% surge in AI investment expectations, with a 72% increase in the Middle East, according to Lenovo’s latest research. The AInomics CIO Playbook 2025, developed in collaboration with IDC, highlights growing confidence in AI alongside challenges in staff training, data quality, and scalability.

In the Middle East, 49% of AI projects met expectations, while 44% exceeded them, making it one of the most successful regions for AI adoption, second only to Eastern Europe (51%). Optimism remains high, with 10% of businesses planning to implement AI within the next 12 months and 38% already in early development stages. With this confidence, businesses are shifting investment priorities, with generative AI taking center stage. Adoption is expected to surge from 5% in the last year to 56% in the coming 12 months, leading to a decline in focus on predictive and interpretive AI platforms.

Beyond generative AI, 40% of Middle Eastern organizations plan to enhance data management capabilities. Public cloud adoption is set to grow by 43%, while private cloud deployments will reach 27%. Hybrid and on-premises AI infrastructure remain dominant, with 77% of AI workloads expected to run on private or hybrid cloud solutions, compared to just 14% opting for public cloud. Organizations are also prioritizing AI partners with expertise in data security, privacy, and scalable AI solutions.

As AI adoption aligns with 2025 business priorities, companies are focusing on optimizing supply chains, increasing agility, and driving digital innovation. While revenue growth remains key, enhancing decision-making processes is also a major goal. However, despite strong momentum, businesses still face challenges in scaling AI, accessing skilled AI talent, and managing infrastructure costs. Other barriers include application performance issues, latency concerns, and endpoint deployment complexities.

Greg Smith, Executive Director and General Manager, EMEA Lenovo Solutions & Services Group, emphasized the importance of overcoming these obstacles. “With enthusiasm around AI high in the region, businesses must work hard to remove adoption barriers to maximize ROI. Leaders are increasingly confident and exploring AI-as-a-Service models. Leveraging the right expertise will be crucial for targeted AI adoption that drives growth.”

To ensure successful AI implementation, businesses are focusing on data sovereignty and compliance (32%), seamless integration with existing systems (32%), employee training and upskilling (31%), and ensuring access to high-quality data (31%). Hybrid AI infrastructure continues to be the preferred approach, with 77% of Middle Eastern businesses opting for private or hybrid cloud solutions, while 14% choose public cloud. AI PCs are also gaining traction, with 14% of businesses already using them, 24% piloting, and 62% evaluating integration.

Giovanni Di Filippo, President of EMEA, Infrastructure Solutions Group at Lenovo, noted the region’s AI evolution. “Organizations in the Middle East are moving past the hype and focusing on full-scale AI implementation. The preference for hybrid AI infrastructure is driven by the need for data security and regulatory compliance.”

Preben Fjeld, VP and General Manager of Personal Computing Devices Services, Lenovo EMEA, highlighted the growing importance of AI-driven productivity. “As businesses transition from piloting to fully implementing AI PCs, 2025 will be a turning point. A well-structured AI strategy is essential for success.”

With AI investments rising and adoption expanding, businesses in the Middle East are well-positioned to leverage AI for innovation, security, and scalability, driving digital transformation across industries.