How Artificial Intelligence Is Transforming Business in the Gulf

The Gulf region is experiencing a business twist that demands attention. In the United Arab Emirates alone, a survey found that 94% of enterprises believe artificial intelligence will drive long‑term growth. In the broader Gulf Cooperation Council (GCC), more than 60% of companies already use AI in at least one function.

What this really means is that AI is no longer a distant idea in the Gulf, it is actively reshaping how business works. This blog examines how that shift is playing out, what it looks like on the ground, what stands in the way, and what business leaders should keep in mind.

The current state of AI in Gulf business

The speed and scale of AI adoption in the Gulf surprise many. In the UAE, 77% of organisations report operational improvements thanks to AI. In the GCC, one‑in‑four companies plan to invest more than US $25 million in AI in 2025. What this shows is not just adoption but serious commitment. Several factors help explain this momentum.

First, businesses and governments in the Gulf are keen to diversify beyond oil and build knowledge‑economies, making AI a natural focus.
Second, infrastructure and tech readiness are high relative to many markets. For example, in the UAE more than half of enterprises say AI is now embedded into core operations.
Third, sectors such as finance, healthcare and technology are leading, they have data‑rich environments and strong potential for AI enhancement. In short, the Gulf region is not just experimenting with AI, it is integrating it.

How AI is transforming business functions in the Gulf

Here’s how AI makes a difference in everyday business across the Gulf region.

Customer interaction and sales: Many companies now use AI to generate leads, automate responses, and personalise offers. In the UAE, 43% of firms reported using AI for sales tasks such as lead‑generation and marketing.
Operations and efficiency: AI helps with resource allocation, workforce management and predictive maintenance. In the UAE, 44 per cent of firms use AI for performance management and 43 per cent use it for managing labour or IT capacity.
Data and decision‑making: Firmly embedding AI means combining good quality data with advanced models. A study found that companies in the Gulf are increasingly blending cloud, private and hybrid data architectures to support AI.
New business models: Some Gulf firms are going beyond cost savings and into offering AI‑powered products and services with AI at their core. The BCG report noted that GCC companies view AI and generative AI as top strategic priorities, 72% of firms rank it among their top three priorities.
Talent conversion and workforce change: AI is shifting what workers do. In the UAE and Saudi Arabia, only a small fraction of employees never use AI at work (7% and 6% respectively). That signals that AI is embedded in work rather than being a separate tool.

These examples demonstrate that AI is not a niche add‑on. It is touching everything from how organisations sell to how they decide what work people do.

Challenges Gulf businesses face when adopting AI

The momentum is clear but there are still headwinds. Here are key challenges.

Talent and skills gap: Even with AI adoption rising, many organisations struggle to find or train staff who understand data, algorithms and AI ethics. The BCG survey in the GCC pointed out this gap.
Data quality and integration: One study found that while infrastructure is often strong in Gulf countries, organisational readiness, data governance, integration of legacy systems, is weaker.
Regulation and governance: Rapid adoption often outpaces regulation. A comparative paper noted that GCC countries emphasise soft regulation rather than binding rules, which can leave gaps in oversight.
Scale and full‑embedding: Many firms use AI in pockets but have not yet made it central to their business. In the UAE only 16 per cent of IT leaders described their AI integration as “fully embedded.”
Measuring real value: It is easier to adopt AI than to show returns in complex business functions. Organisations must monitor not just usage but outcomes, such as market share growth, faster time to market. For example, mature AI‑adopters in the GCC had 2.1 times market share ahead of less mature peers.

These challenges do not mean AI will fail in the Gulf. Instead they highlight where business leaders need to be deliberate.

What this means for business leaders in the Gulf and beyond

For executives and content‑lead professionals (like you) in the Gulf region, the implications are practical.

Focus on strategy and alignment: AI should align with business goals. It is not enough to deploy tools. The Gulf studies show firms with shared vision, C‑suite support and dedicated AI leadership perform better.
Invest in people and culture: The most significant transformation happens when employees adopt AI and know how to use it. Skills, mindset and culture matter. Investing in training and change management is as important as buying technology.
Prioritise data maturity: Real value from AI comes when good data is available, accessible and governed. Clean data, integration of systems, and clear outcomes must come first.
Embed AI into core business functions: Rather than pilot projects alone, Gulf firms that embed AI into operations and decision‑making gain real competitive advantage, faster time to market, higher market share.
Be prepared for governance and ethics: As regulation evolves, business leaders should build in transparency, fairness and oversight into AI systems. Gulf companies that adopt ethical frameworks early will be better positioned.
Adopt an iterative mindset: AI transformation is not a one‑time project. It is continuous. Testing, learning, scaling. Few organisations have reached full maturity yet. Gulf firms are ahead in adoption but many still have room to grow.

For someone writing about business trends, these insights are rich. Use real‑world Gulf examples, highlight how AI drives results in context, and always tie technology back to business value.

Conclusion

Here is the thing. AI in the Gulf is not a future possibility, it is happening now. More companies are using AI, investing in it, and embedding it into how they operate. At the same time, challenges around people, data, governance and scaling remain. What this means for business leaders is clear: treat AI as a strategic business transformation, not a tool you bolt on. Focus on aligning vision, building capability, managing your data, and embedding AI into key functions. If you do that, you will be part of the next wave of business in the Gulf rather than watching it pass by.