Study Reveals Digitalization Progress in UAE and KSA, Driven by AI and ML

A new study commissioned by Eaton, a global intelligent power management company, reveals that fewer companies in the UAE and KSA view legacy technology as a barrier to digitalization compared to 2022. The research highlights the growing role of artificial intelligence (AI) and machine learning (ML) in accelerating digital transformation across industries in the region.

The study, conducted by S&P Global Market Intelligence, surveyed leaders from the data center, utilities, buildings, and manufacturing sectors in the Middle East and globally. According to the findings, digitalization strategies are rapidly evolving, with businesses increasingly adopting advanced technologies like AI and ML to drive progress.

The report shows that just 23% of companies in the UAE and KSA now see legacy technology as a barrier to digitalization, down from 33% in 2022. This 10% shift in sentiment over the past two years is attributed to the transformative potential of AI and ML applications, which are now at the forefront of digitalization efforts.

Qasem Noureddin, Managing Director at Eaton Middle East, stated, “Businesses in the UAE and KSA are accelerating their digital transformation efforts. The report underscores the importance of digital technologies in achieving business objectives, with AI and ML playing a critical role. Demand for data centers has surged due to AI and other advanced technologies, and sectors like manufacturing, utilities, and building management are continuing to make strides toward their digitalization and sustainability goals, aligning with national priorities.”

Key Findings by Sector:

• Data Centers: The demand for data centers is growing, with a focus on facility upgrades (42.3%), expanding capacity (38.6%), and improving IT asset performance utilization (32.8%).
• Utilities: While 55% of utility companies cite outdated infrastructure as their biggest challenge, 40% expect grid capacity requirements to increase by up to 49% over the next decade.
• Manufacturing: AI is seen as a key enabler for decarbonization and improving environmental, sustainability, and governance (ESG) scores (66%). It also aids in energy monitoring (55%), digital twin applications (68%), and predictive maintenance (64%).
• Building Operators: With a focus on sustainability, 46% of building operators are using digital transformation to meet sustainability targets. Additionally, 54% of large building owners plan to install building management systems within the next year, with 66% viewing AI as essential for predicting space utilization.

Eaton’s Brightlayer software is helping businesses embrace digitalization by offering actionable insights through AI, ML, and big data processing. This technology supports real-time decision-making, enhancing power management efficiency and operational value.

The full 2024 Brightlayer research report, titled Adoption, Execution, and Expansion of Digital Transformation in the Wake of AI, is available for free download, offering valuable strategies for businesses to navigate the digital future.