From Oil to AI: The Middle East's Journey towards Technological Innovation

Introduction

As the world stands on the height of a new era of digital transformation, the Gulf Cooperation Council (GCC) region is emerging as a pioneering force in the adoption and integration of advanced technologies. The six nations of the GCC - Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates - are harnessing the power of Robotic Process Automation (RPA), Intelligent Automation (IA), Artificial Intelligence (AI), and Generative AI to drive economic diversification, societal advancement, and regional competitiveness.

This thought leadership article offers a comprehensive exploration of these transformative technologies within the unique context of the GCC region. The objective of this article extends beyond merely elucidating the complexities of RPA, IA, AI, and Generative AI. It also seeks to highlight their transformative capabilities, their capacity to revolutionize various sectors, ignite groundbreaking innovation, and sculpt the forthcoming narrative of the Middle East.

From RPA's ability to streamline operations and enhance productivity, to IA's capacity to automate complex tasks and make intelligent decisions, these technologies are revolutionizing the business landscape. AI, with its potential to simulate human intelligence, is finding applications across diverse sectors, while Generative AI is pushing the boundaries of what machines can create, offering unprecedented opportunities and challenges.

In this article, we delve into the sectoral highlights of these technologies in the GCC region, providing a detailed analysis of their applications, benefits, and the success stories that have emerged. We examine real-world use cases, from healthcare to finance, and from education to energy, showcasing how these technologies are driving transformation and delivering tangible benefits.

Accompany us as we set forth on this expedition into the technological future of the GCC region, a future molded by the game-changing influence of RPA, IA, AI, and Generative AI. Welcome to a domain where technology surpasses its traditional function as a simple tool and evolves into a potent catalyst for transformation.

Emerging Technology in the Middle East

The Middle East, an area deeply rooted in historical richness and cultural heritage, is currently emerging as a pioneering force in the realm of technological innovation. This transformation is being driven by emerging technologies such as Robotic Process Automation (RPA), Intelligent Automation (IA), Artificial Intelligence (AI), and Generative AI. These technologies are not only reshaping industries but also redefining the future of the region. Qatar is leading this technological renaissance, leveraging these advanced technologies to drive its national vision for 2030.

Intelligent Automation

The fusion of Robotic Process Automation (RPA) and AI is making significant strides in Qatar. It is automating complex tasks that require human-like decision-making capabilities, thereby enhancing efficiency and productivity. The Qatar National Bank, a leading financial powerhouse in the Middle East, has effectively integrated Intelligent Automation enhancing operational efficiency and elevating the quality of customer service.

Artificial Intelligence

It is being harnessed to solve intricate problems, predict trends, and improve decision-making. The government's Qatar National AI Strategy further underscores the country's commitment to leveraging AI to improve public services, boost the economy, and establish Qatar as a global leader in AI by 2030.

Generative AI

The capability to generate novel content, is steadily gaining popularity in the Middle East. It carries the promise to transform sectors like entertainment, advertising, and design with its innovative applications. In Qatar, Generative AI is being used in the media and entertainment industry to create new content and enhance user experiences.

The adoption of these emerging technologies in Qatar is a strategic move towards a sustainable and diversified economy, as outlined in the Qatar National Vision 2030. However, the journey is not without challenges. Concerns such as data protection, the requirement for governance structures, and the potential for job displacement must be proactively managed. As Qatar and the wider Middle East persist in adopting these technologies, it's vital to maintain equilibrium between technological progression and its implications on society.

Banking Financial Services and Insurance (BFSI)

The integration of Intelligent Automation, Artificial Intelligence (AI), and Generative AI is significantly reshaping the banking, financial services, and insurance (BFSI) sector in the GCC region, improving customer interactions, risk mitigation, and operational productivity. As of 2023, the BFSI sector in the GCC region is expected to generate a business value of $5 billion from AI, with a projected CAGR of 38% over the next five years. Key applications include AI-driven fraud prevention, customer profiling, and high-frequency trading, with 75% of BFSI entities in the GCC region leveraging AI for risk control and 70% for personalized banking services. Looking ahead, the sector is set to witness a substantial investment of around $20 billion in AI and automation by 2028. The BFSI sector in the GCC region is increasingly prioritizing the adoption of AI and automation, signifying a major transition towards a digitally enabled, data-centric business model.

Use Case 1 - Doha Bank: Automation (RPA)

The implementation of RPA at Doha Bank has helped to minimize manual processes, improve efficiency, enhance output quality, minimize operations risk, and enhance compliance controls with regulations. This has led to an increase in overall efficiency in delivering a customer-centric service.

Use Case 2 - QNB: AI Virtual Agent (Chatbot)

Customers can interact with the bank 24×7 and receive information or advice on their inquiries directly through AI and machine learning algorithms without the need to visit a branch or call the QIB call center.

Use Case 3 - Commercial Bank of Qatar: Fraud Detection

The Bank has created a way for customers to take back control when trying to validate if the caller is genuine and calling from the Bank. Using the CBQ Mobile App, customers are able to identify legitimate calls from the Bank, ensuring the authenticity of the caller and therefore reducing the chances of a fraudster tricking them.??

Oil & Gas

The incorporation of Intelligent Automation, Artificial Intelligence (AI), and Generative AI into the oil and gas sector in the GCC region has brought about a groundbreaking shift, streamlining production processes, bolstering safety measures, and curtailing expenses. As of 2023, AI is anticipated to generate a business value of $4 billion in the GCC oil and gas industry, with a projected CAGR of 37% for the next five years. These advanced technologies are being harnessed for tasks such as predictive maintenance, reservoir modeling, and drilling efficiency, with 70% of oil and gas firms in the GCC region utilizing AI for enhancing production and 65% for managing safety and risk. Looking forward, the sector is expected to witness a significant investment of approximately $15 billion in AI and automation by 2028. The assimilation of AI and automation in the oil and gas industry is increasingly becoming a strategic imperative in the GCC region, indicating a profound transition towards a digitally-enabled, data-centric operational paradigm.

Use Case 1 - ExxonMobil: Close Process Automation

Increase accuracy, audibility and lower the chance of human mistakes by automating the close process and implementing automated checks and alarms. Automating checks and alert procedures frees up corporate analysts to concentrate on producing data-driven insights, allowing functional leaders to manage the closing process by exception.

Use Case 2 - Total Energies: Joint Ventures Production Accounting

Every day, accounting divisions spend a few hours on joint venture production accounting. The accounting divisions include accrual accounting, gas adjustment, income distribution, appointments, and receivables. Automated bots that have been programmed take on the stress of extremely repetitious chores by preparing accounting tasks.

Use Case 3 - Saudi Aramco: Artificial Intelligence

Developed an in-house, AI-powered safety product which leverages historical data to predict potential on-site incidents and hazards, allowing us to increase safety and efficiency in their operations.

Transport and Logistics

The integration of Intelligent Automation, Artificial Intelligence (AI), and Generative AI into the transport and logistics sector in the GCC region has been a game-changer, improving operational effectiveness, safety standards, and customer interactions. As of 2023, the GCC transport and logistics industry is expected to generate a business value of $3 billion from AI, with a predicted CAGR of 40% over the next five years. These cutting-edge technologies are being applied to optimize routes, predict maintenance needs, and develop autonomous vehicles, with 65% of transport and logistics firms in the GCC region using AI for managing fleets and 60% for forecasting demand. Looking ahead, the sector is set to see a substantial investment of around $12 billion in AI and automation by 2028. The assimilation of AI and automation in the transport and logistics industry is increasingly becoming a strategic priority in the GCC region, signifying a major transition towards a digital, data-driven operational model.

Use Case 1 - Milaha: Smart-Logistics Platform

The design, implementation and deployment of systems that will enable smart logistics and connected operations through Azure AI and IoT services, thereby enabling data driven insights, reducing operating costs and further increasing efficiency.

Use Case 2 - Uber: Facial Recognition

Uber uses computer vision for driver identity verification and enhanced safety measures. Drivers are required to verify their identity through a selfie before starting a trip, ensuring that the correct driver is behind the wheel.

Use Case 3 - Maersk: Smart Container Tracking

Implemented AI-powered tracking and monitoring systems for its containers. These systems enable real-time visibility of container location and conditions, ensuring better cargo security and more accurate delivery estimates.

Retail

The integration of Intelligent Automation, Artificial Intelligence (AI), and Generative AI into the retail sector in the GCC region has brought about a significant transformation, enhancing efficiency, personalization, and customer interaction. As of 2023, the GCC retail industry is expected to derive a business value of $2.5 billion from AI, with a projected CAGR of 35% over the next five years. Retailers are harnessing these advanced technologies for managing inventory, improving customer service, and conducting predictive analytics, with 60% of GCC retailers utilizing AI for supply chain control and 55% for personalized marketing strategies. Looking forward, the sector is set to witness an impressive investment of approximately $10 billion in AI and automation by 2028. The assimilation of AI and automation in the retail industry is increasingly becoming a strategic focus in the GCC region, indicating a significant shift towards a data-centric decision-making process and digital transformation.

Use Case 1 - Carrefour: Customer Service

Carrefour has adopted AI-powered chatbots for customer service, providing instant responses to customer queries and improving overall customer experience. The company has also used AI for personalized marketing, leveraging customer data to provide tailored product recommendations and offers.

Use Case 2 - Shopify: Digital Sales Assistant

A ChatGPT-powered digital sales assistant to handle customer support enabled Shopify to quickly achieve rich insights about store performance, sales trends, buyer preferences, and customer churn rate.

Use Case 3 - Noon.com: Personalized Recommendations

Noon.com uses AI algorithms to analyze customer behavior and preferences, providing personalized product recommendations to enhance the shopping experience and increase sales.

Healthcare

The integration of Intelligent Automation, Artificial Intelligence (AI), and Generative AI in the healthcare sector of the GCC region has led to a substantial shift, enhancing patient services, operational efficiency, and medical research. As of 2023, AI in the GCC healthcare sector is projected to generate a business value of $3.2 billion, with an estimated CAGR of 38% over the next five years. These sophisticated technologies are being employed for predictive diagnostics, tailored treatments, and healthcare facility administration, with 65% of healthcare institutions in the GCC region leveraging AI for patient data and medical record management, and 60% for diagnostic purposes. In the future, the sector is expected to see a significant investment of around $13 billion in AI and automation by 2028. The adoption of AI and automation in the healthcare sector is becoming a strategic priority in the GCC region, signaling a major transition towards a digitally-enabled, data-driven operational approach.

Use Case 1 - Hamad Medical Corporation (HMC): Predictive Analytics

HMC uses AI algorithms to analyze patient data and predict health outcomes. This helps doctors make informed decisions about treatment plans and interventions.

Use Case 2 - Qatar Biobank: Genome Programme

The information and biological samples gathered from participants, predominantly Qatari nationals or long-term inhabitants, serve as a foundation for conducting rigorous biomedical studies. The objective of this research is to delve deeper into the origins of various diseases prevalent in Qatar's population, thereby paving the way for the invention and implementation of novel health treatments.

Use Case 3 - Roche and Microsoft: AI and Cloud Technology

The partnership between Roche and Microsoft aims to leverage AI for early adoption of new diagnostic tools, enhancing the efficiency of treatment, and evolving the quality of care. The collaboration focuses on integrating electronic medical records, hospital management systems, and clinical information systems, using AI to process large genomic datasets for precision medicine.

Media and Entertainment

The media and entertainment industry in the GCC region is experiencing a significant shift with the adoption of Intelligent Automation, Artificial Intelligence (AI), and Generative AI, leading to advancements in content production, customization, and audience interaction. As of 2023, AI technologies are anticipated to generate a business value of $1.5 billion in this sector, with an expected growth rate (CAGR) of 33% over the subsequent five years. These innovative technologies are being applied to recommend content, segment audiences, and automate the creation of content, with 60% of the region's media and entertainment entities utilizing AI for tailoring content delivery and 55% for analyzing audience behavior. The sector is projected to see a substantial infusion of around $6 billion in AI and automation by 2028, with the aim of elevating user experiences, streamlining content discovery, and fostering the creation of novel business models.

Use Case 1 - Netflix: Personalization of Show/Movie Recommendations

Netflix uses AI to power its content recommendation system. The system learns from the watching history of users and suggests what they might be interested in watching next.

Use Case 2 - Al Jazeera: Journalism

Al Jazeera has been working with Google to develop AI-enabled tools to assist journalists in researching and writing news articles. These tools provide options for headlines or different writing styles, enhancing journalists' work and productivity.

Use Case 3 - ITP Media Group: Automated Content Creation

The company uses AI to automate some aspects of content creation. This includes using AI to write articles or create video content, which can save time and resources.

Education

The adoption of Intelligent Automation, Artificial Intelligence, and Generative AI is significantly impacting the education industry in the GCC region, opening new horizons for learning and teaching. However, less than 10% of schools and universities globally have developed institutional policies or formal guidance concerning the use of these AI applications, indicating a need for more comprehensive integration strategies and regulatory measures. In terms of future growth projections and investment plans, the focus is on enhancing the productivity of "knowledge workers" like educators and administrators, with a Goldman Sachs report predicting that generative AI could raise annual global GDP by 7% within a decade. This translates to a roughly $7 trillion increase, suggesting substantial potential for investment in AI technologies in the education sector.

Use Case 1 - Qatar Foundation: Automatic Speech Recognition (ASR)

When a customer calls, the ASR system can transcribe the call in real-time. This allows for immediate understanding and response, even if the customer service representative doesn't speak the caller's specific Arabic dialect.

Use Case 2 - Ministry of Labour: Labour Market Information System (LMIS)

The LMIS initiative uses AI to monitor progress towards global goals like the Sustainable Development Goals. It also enables the assessment of the impact of initiatives and policies, facilitating evidence-based decision-making and continuous improvement.

Use Case 3 - UAE Schooling: Advanced Learning

As students progress through higher grades, the subject continues to deepen. Students learn the latest programming language and complete applied projects as part of the Computer Science subject. This allows students to gain hands-on experience with coding and AI.

Transport and Hospitality

The Transport and Hospitality sectors in the GCC region are witnessing a significant metamorphosis due to the integration of Intelligent Automation, Artificial Intelligence, and Generative AI. In the realm of automotive, Generative AI is a game-changer, bolstering Advanced Driver Assistance Systems (ADAS), facilitating driver-vehicle interaction, and refining autonomous driving algorithms. It equips drivers with superior in-vehicle connectivity through voice technology, real-time traffic updates, automatic rerouting, and vehicle monitoring to flag potential mechanical issues. The industry is progressively moving towards fully autonomous vehicles that require zero human intervention, a feat made possible by advancements in Generative AI and ADAS technologies. In the hospitality industry, particularly in the educational segment, AI tools are opening new avenues for learning.

Use Case 1 - Careem: Estimated Time of Arrival (ETA) Predictions

AI is used to provide customers with the most accurate and up-to-date ETAs. This is achieved by factoring in a host of conditions, including local weather conditions, prayer times, and even iftar times during Ramadan.

Use Case 2 - The Investment Promotion Agency Qatar (IPA Qatar): Predictive Analytics

Forecast demand and optimize pricing strategies, which can lead to increased revenue. It can also be used to provide decision support, helping companies make informed decisions based on data-driven insights.

Use Case 1 - Almosafer: ChatGPT

On its?mobile booking platforms, the integration of ChatGPT will?enhance the booking experience?by providing more tailored responses to customer queries.

Conclusion

The countries in the GCC, particularly Qatar, are really making a name for themselves in the world of digital tech. They're using some pretty advanced stuff like Robotic Process Automation, Intelligent Automation, Artificial Intelligence, and Generative AI to transform a bunch of different industries – from finance and energy to healthcare and entertainment. This big tech push is part of their plan to diversify their economies and improve society, and it's all tied into Qatar's big vision for 2030.

Looking ahead, it seems like the Gulf region is on track to keep leading the way in using technology in cool and innovative ways. They're really setting an example for the rest of the world when it comes to diving into the digital age, and it looks like they've got some exciting times ahead.