According to a recent analysis by the Boston Consulting Group (BCG), Saudi Arabia ranks among leading global economies in terms of preparedness for artificial intelligence (AI) as highlighted in their report GCC AI Pulse: Mapping the Region’s Readiness for an AI-Driven Future.
The evaluation employs BCG’s new AI Maturity Matrix, categorizing Saudi Arabia as an “AI Contender,” alongside 31 other nations, which includes the UAE.
The matrix classifies countries into four groups based on their readiness for AI: AI Emergents, Practitioners, Contenders, and Pioneers, with the last group consisting of nations like the US, UK, and China.
Other countries in the Gulf Cooperation Council (GCC), such as Qatar, Kuwait, Oman, and Bahrain, fall into the “AI Practitioners” category.
The report highlights substantial possibilities for advancing AI preparedness and leadership throughout the region, showcasing significant advancements from Saudi Arabia.
“Saudi Arabia’s ambitious investments and strategic vision regarding artificial intelligence illustrate how countries can harness emerging technologies to swiftly transform their economies and elevate their international standing,” commented Dr. Akram Awad, Managing Director and partner at BCG. “With a goal to attract $20 billion in investments and develop comprehensive regulatory frameworks, Saudi Arabia is positioning itself as a leader in AI innovation.”
Awad further noted that maintaining this rapid growth will necessitate “creating an innovative ecosystem that focuses on empowering local talent, strengthening collaborations between academia and industry, and forming global partnerships to propel the nation into new frontiers of technological advancements.”
Saudi Arabia’s Comprehensive Approach to Enhancing AI Readiness
Since the establishment of the Saudi Data and Artificial Intelligence Authority (SDAIA) in 2019 and the rollout of its national AI strategy in 2020, the kingdom has made significant strides in AI.
The strategy aims for Saudi Arabia to rank among the top 15 countries in AI by 2030.
The nation’s AI talent pool has increased to nearly 5,000 professionals. However, the report underscores a persistent need for creating a self-sustaining ecosystem to mitigate reliance on foreign workers.
In the policy arena, Saudi Arabia introduced AI ethics principles in 2023 to align itself with international standards, while enhancing its governance and regulatory frameworks to support AI adoption.
In May, the kingdom launched HUMAIN, an initiative aimed at propelling its AI objectives across the entire value chain. HUMAIN is expected to offer advanced AI services, including Arabic large language models, data centers, cloud infrastructure, and international collaborations to accelerate AI deployment in critical sectors like energy, healthcare, and finance.
This initiative aligns with Vision 2030, aiming to position Saudi Arabia as a leader in AI innovation, research, and sustainable economic transformation.
On the investment side, Saudi Arabia targets $20 billion in AI investment by 2030.
The kingdom filed nearly 200 AI-related patents in 2023, marking a considerable growth since 2019, although it continues to pursue breakthroughs comparable to those in leading global economies.
The local AI ecosystem is described as strong, with 72 percent of Saudi companies implementing emerging AI technologies, backed by significant investments in cloud and AI infrastructure.
Key strengths of Saudi Arabia’s strategy include its ambitious goals, comprehensive digital infrastructure, and effective AI governance.
Opportunities for Improvement
Nevertheless, the report identifies several areas needing enhancement, such as broadening the AI talent base, boosting long-term investment in AI, and increasing emphasis on research and innovation to achieve a global impact.
“Saudi Arabia’s advancements in AI governance and adoption are noteworthy, reflecting a marked increase in national maturity concerning AI, as evidenced by widespread corporate adoption and a rise in patents,” stated Rami Mourtada, partner and director at BCG. “The true measure of its potential to become a global leader lies in its ability to scale and expand its AI successes.”
Mourtada stressed the importance of fostering a self-sustaining AI talent ecosystem, bridging gaps in groundbreaking research, and generating impactful innovations beyond mere infrastructure and investment as critical focus points.
The challenge remains in converting substantial investments in finance, services, and infrastructure into “measurable global AI leadership and pioneering impacts that could transform both domestic and international landscapes.”
The BCG GCC AI Pulse report recommends various methods to enhance AI maturity in the Gulf region. This includes expanding AI capabilities through tailored upskilling programs and attracting global talent to enrich the existing pool and introduce international insights essential for fostering innovation.
Additionally, governance frameworks should be adjusted to better align with evolving AI ethics standards and international guidelines to promote responsible and sustainable AI development.
Such advancements in policy are pivotal for reinforcing Saudi Arabia’s standing as a leader in ethical AI practices.
Furthermore, the report highlights significant potential for increasing research and development investments to strengthen academia-industry collaborations, thereby driving innovation and establishing Saudi Arabia as a center for advanced technological innovations—potentially equaling or exceeding global AI leaders like the US, China, Singapore, the UK, and Canada in specific fields.