AI can boost GCC economies by $1bln

AI can boost GCC economies by $1bln

Artificial intelligence (AI) has the potential to deliver real value in the Gulf Cooperation Council (GCC) countries by as much as $150 billion (Dh550.5 billion), equivalent to over nine per cent or more of GCC countries’ combined GDP, says a new report.

According to McKinsey's latest research on the regional embracement of AI, the speed at which AI technologies like generative AI are developing suggests that figure could be quickly surpassed.

Led by the UAE, the region’s public and private sectors have been investing massively in AI to boost the growth of the digital sector as well as to counter cybercrimes. Different sectors are adopting AI at different speeds in the GCC countries.

Retail companies have made the most progress, with 75 per cent of respondents from that sector saying their companies have adopted AI in at least one business function. Respondents in the financial services and capital projects and infrastructure sectors say their companies have made less progress on the same measure, McKinsey said.

The study found that the GCC companies are missing an opportunity to attract students from local universities and research institutions whose sights are often set on joining big international technology companies.

“Developing better relationships with these institutions by funding research