ServiceNow, in partnership with Oxford Economics, has released its AI Maturity Index Report, revealing significant insights into the adoption of artificial intelligence (AI) in the United Arab Emirates (UAE). The findings highlight how businesses in the region are not only committed to AI but are also aligning it with their overall business transformation strategies.
Strong Commitment from C-Suite Leadership
The report indicates that AI has strong buy-in from top management in the UAE. According to the survey, 71% of UAE businesses reported that their C-suite is fully committed to leveraging AI for business transformation. Furthermore, 81% of respondents stated their organizations operate with a clear, shared vision of AI’s role within the broader enterprise.
In addition to this strategic commitment, 60% of respondents have appointed a dedicated AI leader, such as a “Chief AI Officer,” to guide the implementation of AI initiatives.
Significant Investment in AI
The survey also revealed that AI investments are growing rapidly in the UAE, with 77% of organizations increasing their AI budgets year-on-year. This investment is reflected in the widespread integration of AI across various business functions, from data management to sales and resource utilization.
AI’s Impact on Business Transformation
UAE businesses are focused on leveraging AI for productivity gains and process improvements. The report highlighted that 23% of respondents view productivity increases as the primary metric for measuring the return on investment (ROI) from AI solutions.
The most popular use cases for AI in the UAE are centered around data management and performance optimization. Over half of businesses (53%) are using AI for data cleaning, management, integration, and transformation, while 44% are utilizing AI for performance management. Additionally, 43% of organizations are applying AI in sales-focused tasks such as lead generation and marketing.
Tangible Returns on AI Investments
The study shows that UAE businesses are already seeing positive results from their AI investments. Approximately 65% of organizations reported at least some ROI, citing increased efficiency and productivity. Notably, 24% of respondents reported an ROI greater than 15%, demonstrating the potential of AI to drive meaningful business outcomes.
AI Maturity Still in Early Stages
Despite these early successes, the report indicates that many UAE organizations are still in the early stages of AI maturity. While all respondents report some level of AI capability, only 15% are at the stage where they are transforming or innovating with AI. The majority of organizations are still in the assessing (12%), experimenting (44%), or operationalizing (31%) phases.
This suggests that while AI is already having an impact, many businesses are still refining their strategies and building foundational capabilities.
Indicators of Rapid AI Maturity
The report also outlines factors that are likely to accelerate AI maturity in the UAE. A significant majority (76%) of respondents believe they have the right mix of skills among current employees to execute their AI strategy. Additionally, 65% of organizations have cultivated a culture where teams can work autonomously to identify problems and recommend AI-driven solutions. Over half (55%) host AI learning events to help employees use AI effectively, and 45% have implemented training programs to upskill and reskill staff.
The UAE’s Position as a Leader in AI Adoption
“AI is making a bigger splash since GenAI emerged,” said William O’Neill, Area VP for UAE, ServiceNow. “The real power of AI lies in the careful selection of use cases. With advanced AI, organizations can reshape work across the enterprise, from payroll and procurement to customer service and content creation.”
O’Neill emphasized that UAE businesses are well-positioned to continue their rapid progress along the AI maturity curve, thanks to a clear strategic vision and strong leadership commitment. He encouraged business leaders across the UAE to continue their focus on AI transformation, noting that a clear and shared strategy is a critical factor for achieving high AI maturity.
Looking Ahead: The Future of AI in the UAE
As the UAE continues to lead in technology adoption, businesses are expected to see even greater returns on their AI investments. With a combination of strong leadership, clear vision, and ongoing investment in AI, the UAE is set to further cement its status as a global hub for AI innovation.
