At least 93% of C-Suite executives in the Middle East are planning to increase investment in artificial intelligence (AI) and generative AI (GenAI) this year, according to a new Boston Consulting Group (BCG) survey.

Europe and Asia follow with 86% and 85%, respectively. Conversely, South America is expected to have the least spending.

The survey disclosed that 85% of executives in the Middle East intend to boost overall technology investments in 2024, with Asia-Pacific and Africa following closely at 80% and 77%, respectively.

The survey found 54% of Middle Eastern executives indicating that their AI/GenAI capabilities are currently focused on practical application, moving beyond limited experimentation to encompass more comprehensive and scaled initiatives.

“The Middle East is making significant progress in the field of GenAI by developing essential AI capabilities and recognising the importance of data as a key asset for immediate and strategic value,” said David Panhans, Managing Director and Senior Partner at Boston Consulting Group. 

“The region’s focus on leveraging data for AI and GenAI solutions to various business challenges, combined with a digital-first, data-driven mindset, sets the region apart in GenAI and enables substantial productivity gains and innovation,” he added.

The survey is based on the responses from 1,406 C-level executives in 50 markets and 14 industries. 

The Middle East is leading in upskilling efforts related to GenAI. However, there is room for improvement, as currently, only 11% of Middle East executives reported that more than a quarter of their workers have received training in GenAI tools. This indicates a focused yet ongoing effort in the region to equip the workforce with the necessary skills for the AI landscape.

“As the Middle East continues to excel in AI and GenAI, a key focus is on building the necessary AI muscle to support and advance this area,” said Mark Zaleski, Managing Director and Partner at BCG X. 

The survey further revealed that over 60% of executives are waiting to see how AI-specific regulations develop, and only 6% of companies have trained more than 25% of their employees on GenAI tools so far. 

(Editing by Seban Scaria seban.scaria@lseg.com)