Automation Potential
Among the various AI technologies, generative AI has captured the greatest attention within business and public sector organizations.
Its capability to automate tasks across functions—such as customer interactions, content generation, and computer coding—promises to reshape work output and boost performance.
McKinsey report “the state of gen AI in the Middle East’s GCC countries: A 2024 report card” highlighted that the annual potential value of generative AI in the UAE ranges from a minimum of $5.8 billion to a maximum of $9.6 billion.
The report also estimated that generative AI could generate between $2.6 trillion and $4.4 trillion in global economic value annually.
This would add 15% to 40% to the value previously estimated for other AI technologies.
McKinsey revealed that the potential annual added value of generative AI to the UAE’s economy could reach $9.6 billion (AED 35 billion).
Mentioning that energy, capital projects, and infrastructure are the most benefitting sectors from this digital transformation.
Generative AI and Technologies Economic Impact
AI usage in the GCC could generate between $21 billion and $35 billion annually.
in addition to $150 billion by other AI technologies.
Accordingly, AI could contribute between 1.7% and 2.8% of the annual non-oil GDP in GCC economies.
GCC countries have seen significant increases in AI investments and partnerships.
From governments looking to position their economies as technology leaders and from private sector companies.
How well-positioned are companies in the region to leverage AI benefits ?
To answer this, McKinsey partnered with the GCC Board Directors Institute to survey 140 executives.
Those executives are from eight different sectors.
The conclusion was that while many companies are investing in AI, only a few have scaled its implementation and extracted substantial value from their investments.
According to the report, a small group of “value achievers” has emerged.
This small group is generating over 5% of their profits from generative AI.
They have also made significant progress in reprogramming their organizations to build the necessary capabilities for adopting new AI technology.
Generative AI Adoption Efforts
Many GCC institutions are acting swiftly to capitalize on the value provided by generative AI.
About three-quarters of respondents reported that their organizations are already using AI to some extent.
These organizations have also developed AI strategies and allocated budgets to the areas where AI is likely to have the greatest impact.
However, on all levels, value achievers are making more substantial efforts.
The report highlighted that generative AI could deliver significant potential value within the GCC economy.
Highlighting that the greatest value will be in the energy sector, where annual gains could range between $5 billion and $8 billion.
Followed by capital projects, infrastructure, and financial services.
The President of the State witnesses part of the annual meetings of the UAE government in its 2024 session. His Highness directed the presentation of integrated initiatives and programs that contribute effectively to building the Emirati family. pic.twitter.com/aHcu34FJpd
— UAE Voice (@uae_voiceeng) November 7, 2024
Start with Sales and Marketing.
According to the survey, GCC organizations are focusing their initial AI efforts on highest potential value functions.
Such as marketing, sales, software engineering, and IT.
It may be tempting to apply generative AI across all functions, but it is wiser to start with sales and marketing.
Where global leaders have demonstrated the tangible benefits of AI.
