UAE Companies Rapidly Adopting Cloud and AI, SAP Survey Finds

UAE companies are rapidly adopting cloud computing and plan to significantly invest in Artificial Intelligence (AI) over the next 15 months, according to a new YouGov survey commissioned by SAP. The survey examined key factors in successful AI implementation, such as the use of cloud for core business functions, current AI adoption, data quality, and AI expertise among staff.

The findings reveal that 67% of UAE enterprises have already moved their core business processes to the cloud, with 22% more planning to do so within the next 15 months. Cloud hosting of enterprise resource planning (ERP) solutions enables businesses to maximize AI effectiveness through real-time data access, scalable computing power, and seamless AI integration into business operations.

AI is already being used by many businesses in areas such as marketing and communications (42%), customer service (40%), sales (38%), and accounting and finance (38%). However, its use is less widespread in supply chain, logistics (27%), and product or services development (27%).

Marwan Zeineddine, Managing Director of SAP UAE, emphasized that while cloud adoption is progressing rapidly, AI is not yet fully utilized across all business functions. He pointed out that SAP integrates AI into its enterprise cloud portfolio, offering customers AI-driven insights to enhance operations in finance, HR, and supply chains. However, the survey also highlighted challenges in data quality, with only 65% of respondents expressing confidence in the quality of their data. As businesses move to the cloud, data quality is expected to improve, enabling more accurate AI predictions, streamlined supply chains, and fairer AI models. Zeineddine highlighted SAP S/4HANA for ERP as a solution that ensures clean, organized data for effective AI operations.

The survey also identified key challenges in AI adoption, including integration with existing systems and a shortage of skilled personnel, both of which were cited by 43% of respondents. Privacy and security concerns, along with associated costs, were also mentioned by 40% of respondents. Zeineddine addressed these challenges, noting that embedded AI solutions are making AI more accessible and that SAP’s co-pilot Joule is enhancing SAP solutions with tailored insights while maintaining control over decision-making and data privacy.

SAP’s focus on Business AI was further reflected in its Q3 2024 earnings, with 30% of customer deals including AI use-cases based on SAP’s AI offerings. Zeineddine believes this trend will also continue in the UAE, as SAP’s integrated Business AI solutions meet industry-specific needs without requiring customers to invest in separate AI products.

To tackle the growing demand for AI expertise, SAP is investing in training programs such as the SAP Dual Study Program and the SAP Young Professionals Program, which equip young professionals with hands-on experience and skills in using AI-infused SAP solutions. As UAE businesses continue to adopt cloud computing and AI, SAP’s solutions and training initiatives are positioned to drive the region’s digital transformation.