A new BCG survey of over 1,400 C-Suite executives in 50 markets
reveals that while 66% of global leaders are ambivalent or dissatisfied
with their companies' AI and GenAI progress, the Middle East reflects
a contrasting trend in adopting these technologies.
Middle East Surpasses Global Trends in AI and GenAI with a 93%
Increase in Investments for 2024.
Region Leads in Productivity Gains from AI and GenAI, with 61% of
Executives Anticipating Over 10% Improvement.
UAE, Dubai February 15, 2024- GenAI burst into the public consciousness in 2023,
promising to revolutionize business operations. The Middle East exhibits a distinct
approach to AI and GenAI adoption, differing notably from broader global trends.
According to the Boston Consulting Group (BCG) survey, while 66% of global leaders
report dissatisfaction or ambivalence regarding their AI and GenAI progress, the
scenario in the Middle East is different. 61% of executives anticipate over 10%
productivity gains from AI and GenAI in 2024. 54% of Middle Eastern Executives
indicate that their AI/GenAI capabilities are currently focused on practical application,
going beyond limited experimentation to encompass more comprehensive and scaled
initiatives.
"The Middle East is making significant progress in the field of GenAI by developing
essential AI capabilities and recognizing the importance of data as a key asset for
immediate and strategic value," says David Panhans, Managing Director and Senior
Partner at Boston Consulting Group. "The region's focus on leveraging data for AI
and GenAI solutions to various business challenges, combined with a digital-first,
data-driven mindset, sets the region apart in GenAI and enables substantial
productivity gains and innovation."
The BCG AI Radar: From Potential to Profit with GenAI report is based on a survey of
1,406 C-level executives in 50 markets and 14 industries. Seventy-one percent of
executives surveyed say they plan to increase tech investments in 2024—an 11-point
jump from 2023—and even more (85%) plan to increase their spending on AI and
GenAI. In workforce development, the Middle East is leading in upskilling efforts
related to GenAI. However, despite this progress, there is room for improvement, as
currently, only 11% of Middle East executives report that more than a quarter of their
workers have received training in GenAI tools. This indicates a focused yet ongoing effort in the region to equip the workforce with the necessary skills for the AI
landscape.
"As the Middle East continues to excel in AI and GenAI, a key focus is on building the
necessary AI muscle to support and advance this area," states Mark Zaleski,
Managing Director and Partner at BCG X. "Our region is committed to advancing
technology and developing our workforce through comprehensive change
management, starting with leadership. We have made significant progress in training
our workforce in GenAI, but the journey towards achieving comprehensive AI
proficiency is ongoing. We believe our commitment to developing technology and
human capital is critical."
This Is Not the Time to Wait and See:
Although a small percentage of companies are already reaping the rewards of AI and
GenAI, others are either playing catch up or standing on the sidelines. More than
60% of executives surveyed say their firms are still waiting to see how AI-specific
regulations develop, and just 6% of companies have trained more than 25% of their
people on GenAI tools so far.
According to the report, “winning” companies acknowledge GenAI’s permanence and
recognize its potential for both enhanced productivity and topline growth. It outlines
several characteristics that set the winners apart from observers, including:
Winners invest for productivity and top-line growth. Organizations that
plan to invest more than $50 million in AI and GenAI this year are 1.3 times
more likely to see cost savings in 2024—and 1.5 times more likely to achieve
more than 10% in cost savings.
Winners are systematically upskilling. Twenty-one percent of
organizations spending upward of $50 million on AI and GenAI this year have
already trained more than a quarter of their people.
Winners are vigilant about GenAI cost of use. Cost of use, which has
serious long-term implications, is not commanding the attention it should.
Only 19% of those surveyed consider cost the top concern when choosing an
AI and GenAI solution.
Winners build intentional relationships. Only 3% of executives consider
preexisting partnerships a priority when looking for AI solutions.
Winners implement responsible AI (RAI) principles. Of the companies
surveyed that are investing more than $50 million in AI in 2024, 27% put the
CEO in charge of their RAI strategy (versus 14% overall).
"In the Middle East, AI can redefine company operations, creating significant value for
individual businesses and the broader economies. This shift towards AI-driven
transformation demands a ‘Value-first’ approach and ’Tech + Change Management’
mindset to succeed across various sectors," says Robert Xu, Managing Director and
Partner at BCG X. "Integrating GenAI into our business ecosystems will not only
improve operational efficiencies and bring topline impact but also encourage the
development of new business models, fostering economic growth and regional
development."
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