In 2023, GenAI burst onto the scene, promising to revolutionize business operations worldwide. However, while global leaders express dissatisfaction or ambivalence towards their AI and GenAI progress, the Middle East stands out with a distinct approach. According to a survey by the Boston Consulting Group (BCG), 61% of executives in the Middle East anticipate productivity gains of over 10% from AI and GenAI in 2024. This stands in contrast to the global trend where 66% of leaders report dissatisfaction.
Middle Eastern executives emphasize practical applications of AI/GenAI, with 54% indicating a focus on comprehensive and scaled initiatives rather than limited experimentation. David Panhans, Managing Director at BCG, notes the region’s emphasis on leveraging data for immediate and strategic value, setting it apart in GenAI and enabling substantial productivity gains and innovation.
The BCG AI Radar report, based on a survey of 1,406 C-level executives, reveals a significant increase in tech investments in 2024, with 71% planning to raise investments—an 11-point jump from 2023. Furthermore, 85% intend to increase spending on AI and GenAI. The Middle East leads in upskilling efforts related to GenAI, although only 11% of executives report extensive training for their workforce.
Mark Zaleski, Managing Director at BCG X, underscores the region’s commitment to advancing technology and developing human capital through comprehensive change management. However, he acknowledges the ongoing journey towards achieving comprehensive AI proficiency.
Despite some companies reaping the rewards of AI and GenAI, the majority are still in a wait-and-see mode, with 60% awaiting AI-specific regulations. The report highlights characteristics that set winning companies apart, including investment for productivity and top-line growth, systematic upskilling, vigilance about cost of use, intentional relationships, and implementation of responsible AI principles.
Robert Xu, Managing Director at BCG X, emphasizes the transformative potential of AI in the Middle East, advocating for a ‘Value-first’ approach and a ‘Tech + Change Management’ mindset to drive success across sectors. Integrating GenAI into business ecosystems promises operational efficiencies, topline impact, and the development of new business models, fostering economic growth and regional development.
