This was based on a country-specific report by Boston Consultancy Group (BCG), which is part of its ‘GCC AI Pulse: Mapping the Region’s Readiness for an AI-Driven Future’ released earlier this year in April.
In the report, BCG’s inaugural AI Maturity Matrix, found the UAE and Saudi Arabia as AI Contenders alongside 31 economies worldwide. The matrix identified four economic archetypes based on their AI readiness, ranging from ‘AI Emergents’ at the low end of the scale, followed by ‘Practitioners’, then ‘Contenders’, with ‘Pioneers’ (USA and China) at the high end.
Other GCC countries, including Qatar, Kuwait, Oman, and Bahrain, were ranked in the AI Practitioners’ category.
The report noted there were substantial opportunities for advancing AI readiness and leadership in the region, and highlighted Saudi Arabia as making notable progress on that path.
Dr Akram Awad, Managing Director and Partner at BCG, commented: “Saudi Arabia’s strategic investments and ambitious vision in artificial intelligence exemplify how nations can leverage emerging technologies to rapidly transform their economies and enhance their global stature.
“By aiming to attract US$20 billion in investments and developing sophisticated regulatory frameworks, Saudi Arabia is positioning itself at the forefront of AI innovation.
“However, sustaining this dynamic growth will require fostering an innovative ecosystem built on empowering local talent, enhancing academic-industry collaborations, and forming global partnerships that can catapult the nation into new frontiers of technological achievements.”
Saudi Arabia accelerates AI ambitions
Saudi Arabia is making significant advancements in AI, and its classification as an AI Contender highlights the country’s robust AI readiness and its aspirations to become a global leader in AI. In 2019, Saudi Arabia established the Saudi Data and Artificial Intelligence Authority (SDAIA) and launched its national AI strategy in 2020 with the ambitious goal of ranking among the top 15 AI nations by 2030.
The country’s AI talent pool has expanded to approximately 5,000 specialists, but there is an ongoing need to develop a self-sustaining ecosystem that lessens dependency on expatriate workers. On the policy front, Saudi Arabia introduced AI ethics principles in 2023 to align with global standards and has been strengthening its AI governance and regulatory frameworks to bolster AI adoption.
In May this year, Saudi Arabia launched HUMAIN, which focuses on driving the Kingdom’s AI ambitions across the entire value chain. HUMAIN will deliver advanced AI services, including Arabic large language models, data centers, cloud infrastructure, and international collaborations, to accelerate AI adoption in sectors like energy, healthcare, and finance.
Although Saudi Arabia registered nearly 200 AI-related patents in 2023, showing a significant increase since 2019, it still strives to match the level of breakthrough innovations seen in leading countries.
The AI ecosystem is also robust, with 72 per cent of Saudi companies incorporating emerging AI technologies, backed by substantial investments in cloud and AI infrastructure. However, areas that require further enhancement include expanding the AI talent pool, increasing investments for long-term AI growth, and placing a greater focus on research and innovation to achieve a global impact.
Rami Mourtada, Partner and Director at BCG, added: “Saudi Arabia’s progress in AI governance and adoption is commendable, showcasing a material increase in AI-related national maturity with widespread corporate adoption of AI technologies and ramp-up in patents; its true capacity to emerge as a global leader will hinge on its ability to rapidly scale-up and broaden its AI achievements.
“This would include fostering a self-sustaining AI talent ecosystem, bridging the gap in breakthrough research, and driving impactful innovations beyond infrastructure and investment as critical areas.
“The challenge lies in translating the already substantial financial, service delivery and infrastructural investments into tangible global AI leadership and pioneering impact that can transform both the domestic and international landscapes.”
The report supports the strategic advancement of national visions aimed at enhancing countries’ global competitiveness. It added that the expansion of AI capabilities through dedicated upskilling programs and the acquisition of global talent will broaden the existing talent pool and infuse the regional market with international expertise and perspectives, critical for innovative leaps in AI.
In addition, it said that advancements in policies will solidify Saudi Arabia’s reputation as a leader in ethical AI practices, a benchmark against which global counterparts are measured.
There is significant room for intensifying research and development investments to foster stronger academia-industry collaborations, the report added. This will spur innovation and cement the country’s position as a hub for cutting-edge technological advancements.
