The State of AI in the Middle East in 2023

What I've been learning so far...

Artificial Intelligence (AI) has been making waves globally, and the Gulf/Middle East region is no exception. The region has been embracing AI and its subsets, including Generative AI and Large Language Models, with open arms. The governments and businesses in the region are recognizing the potential of these technologies and are investing heavily in their development and implementation.

The United Arab Emirates (UAE), in particular, has been a frontrunner in the AI race in the region. The UAE government has launched the UAE Strategy for Artificial Intelligence 2031, aiming to position the UAE as a global leader in AI by 2031 and to develop a world-class AI ecosystem in the country. The strategy focuses on nine sectors where AI is expected to have the most impact, including transport, health, space, renewable energy, water, technology, education, environment, and traffic.

My recent trips to the Gulf region in the past two years are showing mixed signs of AI when it comes to adoption at scale. There are somewhat huge'ish investments and commitments in AI but it still needs to be see in action.

For example, I am still looking for sweet spots in the following areas:

1. Startups doing real hardcore AI: are there some startups and scaleups that are building real innovative technologies and capitalizing on inventions in AI?
2. Competitive and competent talent: Is there a emerging talent pool in Machine Learning that can compete at the level of European or US based engineers and developers?
3. Hungry and aggressive VC climate: Are there sufficient VC based investments that are allowing for startups to incubate great ideas even if many of them will fail?

How much time will it take to get to a considerable scale will depend by answering these questions will / should this region compete at scale with other regions.

What we know so far about what some of these nations are doing or atleast have announced so far can be read below.

State of AI in Oman

In recent years, Oman's Ministry of Transport, Communications and Information Technology (MCTIT) has formulated an action plan to accelerate the adoption of AI and ATs. This proposed National Programme for AI and ATs is designed around four main pillars: enhancing the productivity of economic diversification sectors via AI, developing human capabilities in AI, accelerating AI adoption in service sectors such as Defense, Healthcare, and Education, and ensuring the governance of AI and ATs for fair and ethical use 1 .

The implementation of AI is already being seen across various sectors in Oman. In healthcare, AI is being used for early detection of breast cancer. The hydrocarbon sector is leveraging AI for oil leak detection, while in agriculture, AI assists in pollination and disease detection. Additionally, AI is being utilized in smart metering in the electricity and water sectors 1 .

In line with Oman’s vision for 2040, the country launched the Nebula AI platform, a first-of-its-kind in the Sultanate. The platform, created by Oman Data Park, is part of a wider effort to keep pace with the latest technological developments in the field of computing, aligning with the requirements of the fourth industrial revolution and AI 2 . This advancement has bolstered Oman's position in the global AI readiness index, with the Sultanate ranking 48th globally and sixth in the Middle East according to the Oxford Insight Index 2 .

Looking forward, Oman is not just focusing on adopting AI but also fostering innovation and nurturing talent. The Oman IoT & AI Challenge is a testament to this ambition. This capacity-building and pre-incubation program encourages senior university students, high school students, and startups to innovate in the areas of IoT and AI. The vision is clear: IoT and AI are the next evolution that will dramatically change existing industries, and significant efforts are being put into developing solutions that will improve skills and capabilities 3 .

The mission of this challenge aligns with Oman's broader goal: to stimulate and help build an ecosystem supporting an Omani innovation-based economy through strategizing, facilitating, and promoting innovation, entrepreneurship, and the creation of intellectual property in IoT, AI, and their applications 3 . Winners of the local challenge have the opportunity to compete in the Arab IoT & AI Challenge finals, fostering a competitive spirit and opening the door to networking opportunities with top-notch investors in the MENA region 3 .

Oman is evolving, and the country is making significant strides in embracing this technology. The future holds great promise as Oman continues to innovate, adopt, and invest in AI, paving the way for a technologically advanced and economically prosperous future.

State of AI in UAE

The United Arab Emirates (UAE) has been making headlines for its ambitious push into the world of artificial intelligence (AI). The country has set an aim to become a leading AI nation by 2031, hoping to create new economic and business opportunities worth up to 335 billion dirhams ($91 billion) in extra growth 1 .

In 2017, the UAE appointed Omar bin Sultan al-Olama as the world’s first minister for AI when he was just 27. His role includes launching the country’s strategy in AI, a field that impacts everything from speech and facial recognition to commerce and autonomous vehicles 1 .

The UAE's approach to AI is not solely for economic gains. The Minister of State for AI has emphasized that "quality of life" considerations are key, and the responsible rollout of AI is of utmost importance 1 . The importance of a responsible approach is reinforced by the fact that the impacts of AI could reverberate for decades, including inadvertently introducing bias against certain groups of people 1 .

The country has also invested heavily in technology as it diversifies its economy and reduces its reliance on oil. One of its major bets includes driverless cars, with autonomous taxis already being tested on the streets of the capital, Abu Dhabi 1 .

The UAE has also shown commitment to AI through education and capacity building. Abu Dhabi’s Mohamed bin Zayed University of Artificial Intelligence, the world's first graduate-level AI university, opened to students recently 1 .

Senior government officials are being trained on understanding what AI is, understanding the ethical dilemma, understanding what good and bad deployments are, and how to remove bias. Today, these officials are deploying AI across the government, building on a very strong foundation 1 .

Furthermore, the UAE is looking to make an impact beyond its borders in the realm of science and technology. The country sent its first astronaut into space in 2019 and launched a probe in 2020 that went into Mars' orbit the following year. As of now, the country announced a digital economy strategy, hoping the sector will contribute 20 percent of GDP within 10 years 1 .

While efforts were made to gather more recent developments in 2023, unfortunately, technical issues prevented the collection of this information. Nevertheless, it's clear that the UAE is making substantial strides in AI, with goals that could significantly reshape not only its economy but also the daily lives of its residents.

The UAE's efforts in AI underline its determination to be at the forefront of technological advancement, underpinning its vision to create a sustainable and diversified economy, and we can expect further exciting developments in this space in the years to come.

State of AI in Saudi Arabia

In recent years, Saudi Arabia has embarked on a journey to transform itself into a global hub for science and technology, particularly in the field of Artificial Intelligence (AI). This transformation is led by the nation's Crown Prince Muhammad bin Salman and is a part of the Saudi Vision 2030, a strategic framework aimed at reducing the nation's dependence on oil and diversifying its economy 1 .

The Kingdom plans to invest 2.5% of its GDP, roughly $16 Billion, in 2040 into R&D, focusing on areas such as AI applications in healthcare and aging. This coincided with the launch of the Hevolution Foundation, a $20 Billion Saudi initiative aiming to extend healthy human life globally, which is planning to spend over $1 Billion annually 1 .

In 2022, Saudi Arabia hosted the Global AI Summit, an international event that brought together experts, specialists, academics, and CEOs from around the world to discuss the future of AI in various fields. Several significant partnerships were formed during the summit, including a $200 million agreement with SenseTime to finance an advanced AI lab in Saudi Arabia, creating jobs for young Saudis and putting the country on the global AI map 2 .

Furthermore, the Saudi Data and Artificial Intelligence Authority (SDAIA) signed an agreement with the International Telecommunication Union (ITU) to develop a global framework to measure AI readiness and help countries worldwide share and adopt AI best practices 2 .

One of the flagship projects highlighting Saudi Arabia's commitment to AI is NEOM, a $500 billion mega-city development on the Red Sea, envisioned to be the "beating heart" of AI and future technologies. The project, called THE LINE, when completed, will accommodate up to nine million residents in communities characterized by their revolutionary vertical design, relying heavily on AI 2 .

The nation has also seen the launch of several AI applications, such as the early detection program for breast cancer and the 'AIEWA' (Artificial Intelligence Center in Environment, Water, and Agriculture), focusing on sustainability solutions that address climate change risks and enhance environmental protection 2 .

Moreover, SDAIA, in collaboration with Google Cloud, announced the 'Elevate' program to train more than 25,000 women in AI and machine learning over the next five years, demonstrating Saudi's commitment to inclusivity in AI 2 .

Despite these significant steps, the completion of Saudi Arabia's AI journey is still ongoing. The nation's National Centre for AI (NCAI) aims to make Saudi Arabia a global leader in AI by 2030, supporting the Kingdom's Vision 2030. The strategy includes eight objectives, such as developing AI skills, promoting AI research, and fostering AI adoption across sectors.

With these substantial strides, Saudi Arabia is proving itself as a fast-emerging powerhouse in the global AI landscape. The nation's investments, initiatives, and collaborations point towards a future where Saudi Arabia could be recognized more for its advanced AI and cutting-edge innovation than its oil reserves. The vision of the future is bright, and with continued dedication, Saudi Arabia is well on its way to achieving its AI ambitions.

Opportunities and Challenges in GCC

The adoption of AI and Generative AI presents numerous opportunities for the Gulf/Middle East region. It can drive economic growth, enhance efficiency, and create new job opportunities. AI can also help in addressing some of the pressing issues in the region, such as water scarcity, energy consumption, and traffic congestion.

However, the adoption of AI also presents several challenges. These include the need for significant investment in infrastructure, the lack of skilled AI professionals, data privacy concerns, and the potential for job displacement due to automation.

The opportunities presented by AI are immense. AI can drive economic growth by creating new industries and job opportunities. It can enhance efficiency in various sectors, from transportation to healthcare, by automating routine tasks and enabling data-driven decision-making. AI can also help in addressing some of the most pressing issues in the region. For instance, AI can be used to optimize water usage in agriculture, predict and manage energy demand, and improve traffic management.

However, the adoption of AI also presents several challenges. One of the key challenges is the need for significant investment in infrastructure. This includes not just physical infrastructure like data centers and networks, but also digital infrastructure like data platforms and cybersecurity systems. Another challenge is the lack of skilled AI professionals.

While the region has a young and tech-savvy population, there is a need for more training and education programs to develop AI skills. Data privacy is another concern. As AI systems often rely on large amounts of data, there is a need for robust data protection laws and regulations. Finally, there is the potential for job displacement due to automation. While AI can create new jobs, it can also render some jobs obsolete. Therefore, there is a need for policies and programs to support workers in transitioning to new jobs.

My Quick PESTEL Analysis

One of my key observations was that the all countries in this region have their political setup fully backing AI developments. Governments in the region, particularly the UAE government, have recognized the potential of AI and are actively promoting its adoption. The UAE government's AI strategy is a prime example of this. The strategy aims to position the UAE as a global leader in AI by 2031 and to develop a world-class AI ecosystem in the country.

The economic impact of AI can be significant. AI can drive economic growth by creating new industries and job opportunities. It can also enhance efficiency in various sectors, thereby reducing costs and increasing productivity. However, the adoption of AI requires significant investment in infrastructure, training, and research and development.

The sociocultural factor is also crucial in the adoption of AI. There is a high level of acceptance of AI among the population in the region. People are excited about the possibilities that AI offers and are willing to embrace new technologies. However, there are also concerns about job displacement due to automation. While AI can create new jobs, it can also render some jobs obsolete.

The technological infrastructure in the region is well-suited for AI adoption. The region has a robust IT infrastructure, with high internet penetration and a strong digital ecosystem. However, there is a need for further investment and development in areas like data centers, networks, and cybersecurity systems.

AI can also have a significant impact on the environment. It can help in addressing environmental issues such as water scarcity and energy consumption. For instance, AI can be used to optimize water usage in agriculture, predict and manage energy demand, and improve waste management.

Finally, the legal aspect is crucial in the adoption of AI. As AI systems often rely on large amounts of data, there is a need for robust data protection laws and regulations. There is also a need for legal frameworks to address issues related to AI, such as liability and accountability.

So what actual uses cases can we explore?

Obvious Use Case: AI in the Oil and Gas Sector in the Middle East

Artificial Intelligence (AI) has the potential to revolutionize the oil and gas sector in the Middle East, particularly in the areas of upstream, midstream, and downstream operations.

Upstream: Exploration and Appraisals

In the upstream sector, AI can be used to enhance exploration and appraisal activities. AI algorithms can analyze vast amounts of geological data to identify potential oil and gas reserves. These algorithms can detect patterns and anomalies in the data that may not be visible to the human eye, thereby increasing the accuracy of exploration efforts. AI can also be used to create predictive models to estimate the size and yield of oil and gas reserves. This can help companies make more informed decisions about where to drill, thereby reducing the risk and cost of exploration.

AI can also enhance the appraisal process. AI-powered drones and robots can be used to conduct surveys and inspections of potential drilling sites. These drones and robots can collect data quickly and accurately, reducing the time and cost of appraisals. AI can also be used to analyze the data collected during appraisals to assess the viability of drilling operations.

Midstream: Transportation and Storage

In the midstream sector, AI can be used to optimize the transportation and storage of crude oil and natural gas. AI algorithms can analyze data on pipeline flows, storage levels, and market demand to optimize the scheduling and routing of shipments. This can help to reduce transportation costs and minimize storage requirements.

AI can also enhance the safety and reliability of midstream operations. AI-powered predictive maintenance systems can monitor the condition of pipelines and storage facilities and predict potential failures before they occur. This can help to prevent leaks and spills, thereby enhancing safety and reducing environmental impact.

Downstream: Refining and Processing

In the downstream sector, AI can be used to enhance the refining and processing of crude oil and natural gas. AI algorithms can analyze data on feedstock characteristics, process parameters, and product specifications to optimize the refining process. This can help to maximize yield, improve product quality, and reduce energy consumption.

AI can also be used to enhance the safety and reliability of downstream operations. AI-powered predictive maintenance systems can monitor the condition of refining and processing equipment and predict potential failures before they occur. This can help to prevent accidents and shutdowns, thereby enhancing safety and reliability.

In conclusion, AI has the potential to revolutionize the oil and gas sector in the Middle East. By enhancing exploration and appraisal activities, optimizing transportation and storage, and improving refining and processing, AI can help to increase productivity, reduce costs, and enhance safety and reliability in the oil and gas sector.

Other sticky use cases that could dramatically boost the regions digital transformation.

1. Transportation: AI can be used to improve traffic management and reduce congestion. Autonomous vehicles and smart traffic systems can significantly enhance the efficiency of the transport sector. AI can also be used to optimize logistics and supply chain management, thereby reducing costs and improving service delivery.
2. Healthcare: AI can revolutionize healthcare by enabling personalized medicine, improving diagnosis, and enhancing patient care. AI-powered chatbots can provide health advice and reminders, improving healthcare accessibility. AI can also be used to analyze large amounts of health data to identify patterns and trends, thereby enabling preventive healthcare and improving health outcomes.
3. Education: AI can personalize learning and make education more accessible. AI-powered educational platforms can provide personalized learning paths for students, improving learning outcomes. AI can also be used to automate administrative tasks, thereby freeing up time for educators to focus on teaching.

These use cases illustrate the transformative potential of AI in the Gulf/Middle East region. They show how AI can enhance efficiency, improve services, and create new opportunities in various sectors.

Concluding thoughts

The Gulf/Middle East region is at the cusp of an AI revolution. While there are challenges to be addressed, the opportunities presented by AI and Generative AI are immense. With supportive government policies, investment in infrastructure, and a focus on skill development, the region can position itself as a global leader in AI.

The adoption of AI in the region is not just about technological advancement; it's about shaping a future that is more efficient, sustainable, and inclusive. It's about leveraging AI to solve some of the most pressing issues in the region, from water scarcity to traffic congestion. It's about harnessing the power of AI to drive economic growth, enhance public services, and improve the quality of life for the people in the region.

The journey towards AI adoption is not without challenges. Significant investment in infrastructure, the development of AI skills, data privacy, and job displacement due to automation are some of the key challenges that need to be addressed. However, with the right policies and strategies, these challenges can be overcome.

The PESTEL analysis shows that the political, economic, sociocultural, technological, environmental, and legal factors are all conducive to AI adoption in the region. Governments in the region are supportive of AI adoption, the economic potential of AI is immense, the population is receptive to AI, the technological infrastructure is robust, AI can help address environmental issues, and there is a need for robust legal frameworks to address data privacy concerns.

The use cases in transportation, healthcare, and education illustrate the transformative potential of AI. They show how AI can enhance efficiency, improve services, and create new opportunities. They also highlight the need for investment in infrastructure, training, and research and development to fully realize the potential of AI.

Finally, the Gulf/Middle East region is well-positioned to become a global leader in AI. The region has the political will, the economic potential, the technological infrastructure, and the societal acceptance to embrace AI. With continued investment in infrastructure, skill development, and research and development, the region can harness the power of AI to drive economic growth, enhance public services, and improve the quality of life for its people.

The future of AI in the Gulf/Middle East region is bright, and the journey towards that future has just begun.