The United Arab Emirates (UAE) has been recognized as one of the leading emerging economies in terms of artificial intelligence (AI) readiness, according to a recent report by the Boston Consulting Group (BCG). This conclusion is drawn from BCG’s 2024 AI Maturity Matrix, which was highlighted during the Dubai AI Week at the Dubai AI Assembly.

In the report, titled “GCC AI Pulse: Mapping the Region’s Readiness for an AI-Driven Future,” the UAE has been classified as an AI Contender, joining 31 nations globally, including Saudi Arabia. BCG’s maturity matrix outlines four categories of AI readiness: AI Emergents, Practitioners, Contenders, and Pioneers. While other Gulf Cooperation Council (GCC) countries such as Qatar, Kuwait, Oman, and Bahrain fall into the Practitioners category, the UAE is positioned for significant growth.

Dr. Akram Awad, Managing Director and Partner at BCG, emphasized that the UAE is set to become a regional leader in AI by leveraging its advanced digital infrastructure and implementing strategic initiatives aimed at integrating AI into its economic framework. He noted that clear indicators reflect a forward-thinking approach to AI, paving the way for further improvements.

The UAE’s ambitions are supported by its strong policy frameworks, including the National AI Strategy 2031 and the world’s first AI Minister appointed in 2017. With nearly 7,000 AI specialists currently in the country, the need to expand this talent pool is crucial for sustaining innovation and economic transformation. The UAE has also made significant strides in AI-related research, with about 700 publications, though there is still a gap to close in terms of achieving globally recognized innovations.

While the UAE currently exceeds average investment levels among its peers in the AI Contender category, there is a pressing need to mobilize additional private sector capital and engage more deeply in AI ventures. The country’s commitment to shaping its AI future is demonstrated by its $100 billion MGX fund and a robust infrastructure that includes 35 data centers, which places it at the forefront of AI technology development in the region.

Rami Mourtada, Partner and Director at BCG, highlighted the importance of increasing private sector engagement, enhancing research and development outcomes, and expanding the homegrown AI talent pool to solidify the UAE’s position as a global AI leader. These factors will accelerate the UAE’s journey toward achieving AI Pioneer status, which would yield substantial economic and social benefits.

The report also discusses the broader GCC region’s momentum toward AI maturity, with Saudi Arabia making significant progress through its Saudi Data and AI Authority (SDAIA) and ambitions to be among the top 15 AI nations by 2030. Countries like Qatar and Oman are investing in modern infrastructure and upskilling programs, while Bahrain and Kuwait focus on establishing foundational strategies for AI readiness.

Dr. Lars Littig, Managing Director and Partner at BCG, remarked on the remarkable leadership of the UAE in AI, while also noting the transformative wave across the GCC. He emphasized the potential for the region to emerge as a leading cluster for AI innovation globally, with countries leveraging AI to enhance sectors such as oil production and supply chain management.

To further advance AI maturity, BCG’s report suggests that national strategies should focus on expanding AI capabilities through targeted upskilling and attracting global talent. This will not only enrich the existing workforce but also infuse the regional market with diverse expertise vital for driving innovative developments in AI.

Additionally, aligning governance structures with evolving AI ethics and international standards is essential for ensuring responsible and sustainable AI growth. Strengthening policies will reinforce the UAE’s reputation as a leader in ethical AI practices, setting a benchmark for others to follow.

The report underscores the necessity for increased investment in research and development to foster collaboration between academia and industry, positioning the UAE as a hub for cutting-edge technological advancements and potentially surpassing global AI leaders in specific domains.