Abu Dhabi has unveiled plans to become the world’s first fully AI-driven government by 2027, backed by a substantial budget of approximately $3.54 billion. This initiative represents a significant step toward reshaping public services through innovative technology, aiming to redefine the delivery of government services.

The Abu Dhabi Government entered into a strategic partnership with Microsoft and Core42, a subsidiary of the UAE-based tech giant G42. This collaboration is designed to accelerate the integration of artificial intelligence across various public service sectors, combining Microsoft’s advanced cloud solutions with G42’s AI technology to enhance governmental operations.

As part of this ambitious digital transformation strategy, Abu Dhabi intends to manage over 11 million digital interactions daily. Officials believe this will revolutionize public services, making them more innovative and responsive to citizens’ needs. This partnership is seen as a pivotal shift in how the government interacts with the public through technology.

Microsoft’s CEO, Satya Nadella, emphasized the significance of this partnership, noting that “Abu Dhabi is setting the pace for governments worldwide in embracing transformative technologies.” This reflects the UAE’s broader strategy to position itself as a leader in the global AI landscape.

The new agreement aligns with other major developments in the region, including the launch of a sovereign cloud system that will further bolster Abu Dhabi’s ambitions for AI-driven administrative services. This initiative is essential for improving governance through artificial intelligence.

In addition, Abu Dhabi is actively investing in the energy sector, exemplified by a $25 billion partnership formed by the Abu Dhabi sovereign wealth fund, ADQ, with the US firm Energy Capital Partners. This collaboration aims to enhance energy generation and infrastructure in the US, particularly for data centers and energy-intensive industries. As AI technology advances, global electricity demand is projected to rise by 70% over the next decade.

Recognizing the growing need for data hosting services, Abu Dhabi has committed $50 billion to the AI sector in France and is set to establish a data center in Italy. This strategic investment highlights the Emirate’s intent to expand its reach in the European market.

Furthermore, Abu Dhabi’s investment strategy includes engaging with leading technology firms as part of the $500 billion Stargate project, which involves partnerships with companies like OpenAI, Oracle, and SoftBank. This initiative, announced by former US President Donald Trump in January 2025, underscores the Emirate’s commitment to leveraging AI across various sectors.

In a related effort, Abu Dhabi-backed AIQ, a joint venture between the national oil company ADNOC and Presight, is exploring opportunities to market its innovative AI technology, first developed for oilfields, to resource-rich countries globally. The technology has been instrumental in reducing downtime at drilling sites and improving productivity, significantly shortening project timelines.

ADNOC recently signed a $340 million contract with AIQ to implement advanced AI technology across its oilfields. AIQ’s acting managing director, Magzhan Kenesbai, noted the importance of adaptive AI in providing a competitive edge in the rapidly evolving energy sector.

As the UAE forges ahead in the AI domain, the plans for an AI-driven government signify a transformative shift in global governance. By harnessing advanced technologies, Abu Dhabi aspires not only to enhance its administrative functions but also to set a global benchmark for others to follow.

In a rapidly advancing region, Abu Dhabi is determined to lead in innovation. Its comprehensive approach to integrating AI into public services, alongside investments in critical infrastructure and global partnerships, demonstrates a commitment to evolving its governance model for a new digital age.

As this ambitious vision unfolds, stakeholders within the UAE and beyond will be closely monitoring the implications of these developments on the global stage, particularly in relation to governance, technology, and energy management.