A recent study by IBM reveals that the UAE is confidently positioning itself as a leader in AI governance. Conducted by the IBM Institute for Business Value in conjunction with the Dubai Future Foundation, the report highlights that companies in the UAE are pioneers in appointing Chief AI Officers (CAIOs), indicating that organizations view AI as essential for future growth rather than merely a technological enhancement.
In a unique discussion featured on the podcast Situation Today by Gulf Business, Lula Mohanty, the managing partner for IBM Consulting in the Middle East and Africa, shared important insights regarding the findings of this research and IBM’s efforts to help organizations implement AI effectively.
“Having recently moved to the region, I am thrilled by the abundant opportunities,” Mohanty stated. “There is significant momentum surrounding AI, and the UAE is approaching it as a crucial economic necessity rather than just an experimental phase.”
She pointed out a remarkable statistic: one-third of organizations in the UAE have appointed a CAIO, a figure that surpasses global averages significantly. Mohanty attributes this regional leadership to well-established national strategies like the UAE’s AI Strategy 2031, substantial investments in digital infrastructure, and a government perspective that regards AI as a powerful catalyst for growth.
“This leadership stems from the UAE’s long-term vision,” she noted. “In this nation, AI is not merely an add-on—it is a key economic engine, as emphasized by His Excellency Omar Sultan Al Olama.”
His Excellency Omar Sultan Al Olama has served as the UAE’s Minister of State for Artificial Intelligence since 2017, making him the world’s first minister in this sector.
Although the UAE is progressing impressively, the significant challenge remains in integrating AI into the core operations of businesses.
“The complexity of creating AI models is no longer the main issue,” Mohanty explained. “The true challenge arises when it comes to embedding these models into everyday business processes in a scalable, secure, and ethical manner.”
CAIOs are thus evolving from being mere technology specialists to becoming cultural leaders. The study indicates that 40% of UAE CAIOs focus on change management, a higher percentage than the average seen in the region. Their responsibility includes establishing governance, security, and fostering a mindset conducive to AI development.
“At IBM, we organized a company-wide hackathon to instill AI thinking throughout our organization. Over 178,000 IBM employees took part. This initiative was centered on creating a culture where AI is seen as a standard practice rather than an exception.”
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The report also indicates that 90% of UAE CAIOs enjoy robust backing from their CEOs, with 53% reporting directly to the CEO or board. Mohanty believes this executive support stimulates deployment speed and aligns organizational goals.
“When leadership prioritizes AI, everything else follows—resource distribution, accountability, and decision-making pace align. It transitions from a departmental effort to an enterprise-wide dialogue,” she emphasized.
IBM has adopted a similar internal approach. Through its enterprise-wide AI strategy, the company reportedly achieved over $3.5 billion in productivity savings utilizing its watsonx platform, which is now being tailored for regional clients.
Despite the optimism, several hurdles persist. Approximately 76% of organizations in the UAE remain in the pilot phase of AI implementation, compared to 60% globally. Advancing beyond initial concepts requires more than a vision—it demands robust infrastructure, reliable data, and collaborative cross-functional teamwork.
“Proof-of-concepts are prevalent, but true integration of AI into business models is where the challenge lies,” Mohanty pointed out. “A platform-focused approach is essential.”
Financial independence is also a relevant factor. The findings show that 79% of UAE CAIOs manage their organization’s AI budget, which is considerably higher than the global average.
“This control enables them to prioritize projects with significant impacts and measure returns effectively. It’s about backing your commitments with financial resources.”
IBM is actively collaborating with both public and private sectors to help realize AI applications in the UAE. Examples include a strategic alliance with e&, announced at WEF 2025, to implement a comprehensive AI governance solution using IBM’s watsonx.governance; a cooperation with Dubai Future Foundation to support startups and establish a high-impact AI ecosystem; and a mobile application, co-developed with the University of Sharjah through the IBM Sustainability Accelerator, aimed at assisting UAE farmers in evaluating water quality and enhancing agricultural methods.
“The potential applications of AI in public administration, logistics, and healthcare are vast,” Mohanty stated. “We are only beginning to scratch the surface.”
The study also revealed that 69% of UAE CAIOs have backgrounds in data-related positions, while 48% come from operations. This indicates a significant shift in the type of leadership required in the field.
“It’s insufficient to simply understand how AI functions—you must also know where it can be effectively applied,” she clarified. “Effective leaders now connect insights to tangible results. It’s about orchestrating workflows rather than merely providing assistance.”
Promotions from within organizations also contribute positively. A notable 69% of UAE CAIOs were internally promoted, a fact Mohanty believes strengthens cultural alignment.
“They are familiar with processes from the start, and their established credibility enables them to spearhead transformation. This also elevates the CAIO role to an aspirational level.”
Despite the difficulties in establishing precise AI metrics, 74% of UAE CAIOs are making strides with their AI initiatives. Mohanty emphasizes the necessity for organizations to adopt a “progress over perfection” mindset.
“When we developed our AskHR platform, we didn’t wait for everything to be perfect. We set a goal of saving 10,000 hours but ended up saving 12,000. Presently, we manage over 11.5 million interactions.”
She recommends that organizations focus on quick wins, establish clear criteria for project completion, and take a phased approach to scaling AI initiatives.
“AI can rapidly become outdated. It’s crucial to act swiftly, but this should be coupled with discipline and governance.”
Mohanty summarizes the key lessons from the UAE: prioritize from the top, invest in robust platforms, weave AI into all functions, and foster a shift in mindset.
“The goal is to develop a scalable AI framework with well-defined strategies, competencies, and cultural readiness,” she asserted. “The UAE exemplifies that AI can be woven into the very fabric of an organization—not just as an advanced tool, but as a fundamental driver of comprehensive transformation.”