Saudi Aramco entered into a memorandum of understanding with Microsoft to pursue industrial artificial intelligence projects that could be used to enhance the efficiency of operations, leverage digital sovereignty, and increase the technical workforce of the Kingdom.
The non-binding agreement is based on a long-standing collaboration between a state energy giant and the US technology company, which is aimed at implementing AI-powered industrial solutions that are developed on Microsoft Azure and integrating them into the basic operations.
According to a joint press release, the companies will explore how to co-develop and commercialize industrial AI systems in the energy sector, with the possibility of developing a global market through Saudi-developed technologies.
Ahmad O. Al Khowaiter, Aramco Executive Vice President of Technology & Innovation, said: “Aramco is driving the energy sector’s digital transformation by creating a secure, intelligent, and collaborative digital ecosystem.”
He stated, “In partnership with Microsoft, we seek to further scale cutting-edge digital and AI solutions in that sector to achieve efficiency and innovation — without compromising the highest standards of security and governance.”
One of the most important elements of the agreement is digital sovereignty. The companies will discuss a pathway toward the implementation of Microsoft cloud services with improved sovereign controls to address national data residency needs, a field of growing interest among Gulf governments aiming to exert more influence over strategic data infrastructure.
The agreement also entails the streamlining of Aramco’s worldwide digital architecture and the involvement of Saudi technology integrators to increase AI utilization throughout the industrial value chain.
In addition to infrastructure, the partnership focuses on workforce development. The companies are considering specific programs to widen the expertise in AI engineering, cybersecurity, data management, and product management, building on the current training programs of Microsoft in the Kingdom.
Brad Smith, Microsoft Vice Chair and President, added, “This marks the next step in our long-standing collaboration with Aramco, exploring how industrial AI can move from pilots into core operations to improve efficiency and resilience at scale.”
He stated, “Our focus is on building strong foundations — sovereign-ready digital infrastructure, trusted governance, and the skills needed for responsible industrial AI adoption.”
He said, as a world industry leader, Aramco can establish a precedent in transforming large-scale, responsible AI industrial transformation in line with Saudi Vision 2030.
