Generative AI (GenAI) is reshaping the Gulf Cooperation Council (GCC) region’s business landscape, offering significant economic opportunities and driving innovation. Below is an overview of GenAI’s current state and future prospects in the GCC:
Economic Impact
GenAI is expected to add considerable value to the GCC’s economy:
- McKinsey estimates GenAI could contribute $21-35 billion annually to the GCC’s non-oil GDP, equating to up to 2.8% of annual GDP.
- The Generative AI market in the GCC is projected to grow by 46.26% from 2024 to 2030, reaching a market volume of $5.09 billion by 2030.
Adoption and Investment
GCC organizations are rapidly adopting GenAI:
- Nearly 75% of GCC organizations report GenAI usage in at least one function, compared to 65% globally.
- 57% of GCC organizations allocate over 5% of their digital budgets to GenAI, significantly above the global average of 33%.
Challenges and Opportunities
Despite the promise of GenAI, GCC organizations face several hurdles:
- Talent shortages, decentralized data management, and risk management issues are common barriers to broader adoption.
- Only 10 surveyed companies generate over 5% of earnings from GenAI, primarily those using proprietary or highly customized models.
- Cybersecurity, compliance, and model accuracy remain top concerns, with 66% of respondents prioritizing cybersecurity in GenAI implementations.
Strategic Imperatives
To fully capture GenAI’s potential, GCC stakeholders should prioritize:
- Developing interoperable infrastructure that bridges Eastern and Western technologies.
- Enhancing data privacy measures to foster customer trust.
- Addressing talent gaps through global recruitment and implementing low-code, no-code, and generative-code tools.
- Government support for infrastructure, national data aggregation, and balanced AI regulations.
Moving Forward: Realizing the GenAI Vision in the GCC
With the foundational strategies in place, GCC organizations and governments are well-positioned to lead in the AI era. By aligning their technology roadmaps with GenAI’s evolving capabilities, fostering an environment of continuous innovation, and emphasizing a collaborative approach to AI, the GCC can transform GenAI from potential into tangible results. As GenAI rapidly evolves, the region’s proactive stance will be critical to leveraging this technology for long-term growth, economic resilience, and global competitiveness.
Written by Ladle Patel, Senior Advisor-AI & ML Factory at Arab National Bank.