Artificial Intelligence (AI) remains a top priority for business leaders worldwide in 2025, with a strong focus on achieving tangible results from AI initiatives. According to the latest findings from Boston Consulting Group (BCG)’s AI Radar global survey, one in three companies globally plans to allocate over $25 million to AI this year, while in the GCC, one in four companies is set to make a similar level of investment. The survey, including input from 1,803 C-level executives across 19 markets and 12 industries, highlights a widespread optimism about AI’s potential, tempered by significant challenges in realizing its full value.
AI as a Tool for Productivity and Innovation
Leading companies in the GCC are focusing their AI investments on two strategic priorities: reshaping core business functions and creating entirely new AI-powered business models. Reshaping involves fundamentally transforming existing operations for greater efficiency while creating new business models that enable offerings that weren’t possible before AI.
This strategic approach is reflected in the fact that 81% of GCC companies plan to increase tech investments in 2025, and 72% of GCC companies rank AI/GenAI as a top three strategic priority. At the country level, 88% of executives in Qatar, 72% in the UAE, and 69% in KSA rank AI/GenAI among their top three strategic priorities, compared to a 73% global average.
In the GCC, 66% of executives expect AI to boost productivity; however, they agreed that more is needed to ensure that current workforce talent is ready to meet AI demands. Overall, this positive outlook on workforce retention in the GCC and the broader Middle East stands out as a key finding from the survey, with only 7% of executives in the Middle East anticipating headcount reductions due to AI automation—an even lower percentage than the global average of 8%.
The GCC’s efforts also emphasize practical AI applications rather than limited experimentation. For successful AI implementation, the region’s organizations are increasingly adopting the “10-20-70 principle” – a proven framework for AI value creation. They dedicate 10% of their efforts to algorithms, 20% to data and technology, and 70% to people, processes, and cultural transformation. This strategic balance recognizes that technology alone isn’t enough – organizational and cultural changes are essential for AI success. This commitment is evident in the UAE, where 27% of organizations have already trained more than a quarter of their workforce on AI tools. While the UAE is currently leading in AI workforce development within the region, this comprehensive training approach represents a model that other GCC countries are working to adopt, recognizing that employee upskilling is critical for maximizing AI’s potential.
A Balanced Approach to AI Risks
While the GCC leads in AI adoption, regional executives are also keenly aware of the risks of scaling AI. Data privacy and security, lack of control over AI decision-making processes, and regulatory challenges are top concerns for regional executives, aligning closely with global risk perceptions. Addressing these concerns is crucial to ensuring AI’s practical and ethical adoption.
“We’re seeing a fundamental shift in how GCC organizations approach AI. It’s no longer about selective implementation—there’s a clear understanding that AI should be integrated into all roles and processes. The region’s focus on training goes beyond adopting technology—it’s about preparing a workforce that can stay competitive in a changing job market,” said Robert Xu, Managing Director and Partner, BCG X.
AI and GenAI Investments in the GCC
To maximize the return on their significant AI investments, forward-thinking GCC organizations are moving beyond technology acquisition to focus on strategic value creation. This evolution reflects a maturing approach to digital transformation across the region.
The most successful GCC companies distinguish themselves through a three-tiered strategy: first, deploying AI for immediate productivity gains in everyday operations, then reshaping critical business functions to achieve substantial efficiency improvements, and ultimately, developing entirely new AI-powered business models that create lasting competitive advantages.
This approach requires executive leadership that breaks through traditional thinking. GCC leaders who see the most significant impact are those who reimagine entire operating models rather than digitize existing processes. They concentrate resources on a few transformative opportunities rather than spreading investments thinly across numerous projects, and they manage AI implementation as a comprehensive business transformation rather than a technology initiative.
The region’s most innovative organizations recognize that AI success depends on blending technological capability with organizational readiness. By focusing equally on system architecture, data strategy, and human factors like upskilling and cultural adaptation, these companies create a foundation for sustainable competitive advantage in an increasingly AI-driven global economy.
“While many regions are caught in short-term AI experimentation, the GCC takes the long-term view. The remarkable investment levels we’re seeing aren’t just about immediate gains—they reflect a deeper understanding that AI’s true socioeconomic impact will unfold over years, not quarters. This patient, strategic approach to technology and talent development is setting the region apart,” said Dr. Lars Littig, Managing Director and Partner at BCG.
