Muscat: 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 $25mn to AI this year, while in the GCC, one in four companies is set to make a similar level of investment.

The survey, which includes input from 1,803 C-level executives across 19 markets and 12 industries, highlights widespread optimism about AI’s potential, tempered by significant challenges in realising its full value.

AI as a tool for productivity

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 new business models enable offerings that were not possible before AI.

This strategic approach is reflected in the fact that 81% of GCC companies plan to increase technology investments in 2025, and 72% 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 Saudi Arabia rank AI/GenAI among their top three strategic priorities, compared to a global average of 73%.

In the GCC, 66% of executives expect AI to boost productivity; however, they acknowledge that more needs to be done to ensure that the current workforce is prepared to meet AI demands. Overall, the region’s positive outlook on workforce retention stands out as a key survey finding, with only 7% of executives in the Middle East anticipating job reductions due to AI automation – an even lower percentage than the global average of 8%.

The GCC’s efforts also emphasise practical AI applications rather than limited experimentation. To successfully implement AI, the region’s organisations are increasingly adopting the “10-20-70 principle” – a proven framework for AI value creation. This approach dedicates 10% of efforts to algorithms, 20% to data and technology, and 70% to people, processes, and cultural transformation.

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 are seeing a fundamental shift in how GCC organisations approach AI. It is no longer about selective implementation – there is a clear understanding that AI should be integrated into all roles and processes. The region’s focus on training goes beyond adopting technology – it is about preparing a workforce that can stay competitive in a changing job market,” said Robert Xu, Managing Director and Partner, BCG X.

To maximise the return on their significant AI investments, forward-thinking GCC organisations are moving beyond technology acquisition to focus on strategic value creation. This evolution reflects a maturing approach to digital transformation across the region.

“While many regions are caught in short-term AI experimentation, the GCC takes the long-term view. The remarkable investment levels we are seeing are not 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.

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