Lula Mohanty, Managing Partner for IBM Consulting in the Middle East and Africa/Image: Supplied
A recent study by IBM indicates that the UAE is emerging as a leading nation in the realm of AI governance. Conducted by the IBM Institute for Business Value (IBV) in collaboration with the Dubai Future Foundation, the report highlights that businesses in the UAE are at the forefront of appointing Chief AI Officers (CAIOs). This trend demonstrates that organizations view AI not merely as an advancement in technology, but as a crucial factor for future development.
In an exclusive interview featured on the Gulf Business podcast “Situation Today,” Lula Mohanty shared her observations regarding the regional ramifications of the study and how IBM is assisting organizations in operationalizing AI effectively.
“Having recently arrived in the region, I am particularly thrilled by the vast opportunities,” she stated. “There’s significant momentum surrounding AI here, and the UAE is considering it not just an experiment, but a vital economic necessity.”
One notable finding from the report is that one-third of organizations in the UAE have appointed a CAIO, a figure that surpasses global averages significantly. Mohanty attributes this regional leadership to long-term national initiatives like the UAE’s AI Strategy 2031, substantial investments in digital infrastructure, and a governmental approach that recognizes AI as a catalyst for growth.
“This leadership stems from the UAE’s long-term vision,” she noted. “This is a nation where AI is more than just a prompt; it is an economic engine, as highlighted by His Excellency Omar Sultan Al Olama.”
Omar Sultan Al Olama made history as the world’s first Minister of State for Artificial Intelligence when he was appointed in 2017.
While the UAE is paving the way, the true challenge lies in integrating AI into the operational core of organizations.
“Developing AI models is no longer the challenging aspect,” Mohanty explained. “The real hurdle is embedding these models into daily business operations in a secure, ethical, and scalable manner.”
This shift is seeing CAIOs evolve into cultural leaders. The study indicates that 40% of UAE CAIOs prioritize change management, exceeding the regional average. Their role includes fostering necessary conditions like governance, security, and a culture conducive to AI success.
“At IBM, we organized an internal hackathon to instill an AI-focused mindset throughout the company. Over 178,000 employees participated. It’s about creating a culture where AI is a standard part of business operations, not just an exception.”
Watch the complete video interview here:
The report further indicates that 90% of UAE CAIOs receive substantial support from their CEOs, with 53% reporting directly to the CEO or board. Mohanty argues that this top-level backing accelerates implementation and aligns organizational goals.
“When leadership centralizes AI in their agenda, everything else falls into place—resource distribution, accountability, and the pace of decision-making. It transitions into a company-wide dialogue rather than a departmental project.”
IBM has adopted a similar strategy internally, reportedly saving over $3.5 billion in productivity through its watsonx platform—a model currently being implemented for clients in the region.
Despite the positive outlook, challenges persist. Approximately 76% of UAE companies remain in the initial phases of AI adoption, contrasting with 60% globally. Advancing beyond proof-of-concept requires more than just vision; it necessitates suitable infrastructure, reliable data, and collaborative cross-functional efforts.
“Proof-of-concepts are widespread, but the real challenge initiates when you strive to integrate AI into your business framework,” Mohanty expressed. “A platform-first mindset is essential.”
Financial independence is also crucial. The research shows that 79% of UAE CAIOs manage their organizations’ AI budgets, a significantly higher percentage compared to global figures.
“This control enables them to prioritize meaningful projects and assess ROI. It’s about aligning financial commitments with strategic objectives.”
IBM is actively collaborating with both public and private entities to actualize AI initiatives in the UAE. Initiatives include a partnership with e&, announced during WEF 2025, aimed at implementing a comprehensive AI governance solution utilizing IBM’s watsonx.governance; a collaborative effort with the Dubai Future Foundation to mentor startups and establish an influential AI hub; and a mobile application developed with the University of Sharjah through the IBM Sustainability Accelerator to assist UAE farmers in evaluating well water quality and enhancing agricultural practices.
“The possibilities for AI in public services, logistics, and healthcare are vast,” Mohanty stated. “We are just beginning this journey.”
The survey also revealed that 69% of UAE CAIOs originate from data-related backgrounds, with 48% hailing from operations. This reflects a shift in the type of leadership now required.
“Understanding AI is not enough; you must comprehend where it can be effectively applied,” she clarified. “The most successful leaders are those who translate insights into tangible outcomes. It’s about orchestrated processes, not mere assistant tools.”
Promotions from within are also making a substantial impact. A notable 69% of UAE CAIOs have been promoted internally, which Mohanty suggests fosters cultural unity.
“They are already aligned with company processes and command the respect needed to lead change. This also transforms the CAIO position into a desirable role.”
Though establishing flawless AI metrics remains a challenge, 74% of UAE CAIOs are advancing with AI initiatives. Mohanty emphasizes the importance of a mindset that favors progress over perfection.
“We didn’t wait for the ideal scenario when we developed our AskHR platform. We had a modest goal of saving 10,000 hours and ultimately saved 12,000. Currently, we manage over 11.5 million interactions.”
She suggests that organizations should start with achievable objectives, set clear exit criteria for pilot projects, and adopt a gradual scaling approach.
“AI has a tendency to become outdated quickly. You must act promptly, but maintain discipline and governance.”
For Mohanty, the UAE’s examples are clear: cultivate leadership from the top, invest in infrastructure, integrate AI across all organizational functions, and encourage a shift in mindset.
“This is about constructing a scalable AI framework with explicit strategies, necessary skills, and a readiness for cultural change,” she concluded. “The UAE has demonstrated that AI can become ingrained in the organization’s essence—not just as an advanced model, but as a driver of comprehensive enterprise transformation.”